Differences between a Tramp Ship and a Cargo Liner:

Differences between a Tramp Ship and a Cargo Liner:

CARGO LINER	TRAMP SHIP
·         It follows a regular route and timetable. ·         It carries a variety of cargo. ·         The freight rates for goods and passengers carried are fixed by the owners at the shipping conferences. ·         It is subject to charter. ·         Generally more control and supervision are exercised over the ship activities.	·         It has no route or timetable but goes wherever there is business. ·         It usually carries only one type of cargo in bulk. ·         The freight rates are determined by bargaining at the time when the ship is chartered. ·         Tramp ships can be chartered either for a voyage or for a period of time. ·         There is not much control and supervision exercised.

OWN FLEET OPERATION

Most of manufactures, wholesalers and retailers prefer to operate their own fleet of vehicles to deliver the good for them. Such vehicles may be owned, leased or hired by the firms.

Advantages of own fleet operation

1.   It could be cheaper than using transport firms vehicles.

      2.   Own vehicles can carry free advertisement for the firms.

3.   The vehicles are always on hand. Therefore, the traders can use them at any time to carry the goods.

4.   The firm can use its own drivers which reduces the risk of theft and damage.

Disadvantages of own fleet operation

      1.   More capital could be needed.

2.  If the vehicles are not fully used it would be more expensive than using road transport firms.

3. Additional cost for servicing employment to drivers, garaging and licensing the vehicles are created.

CONTAINERIZATION

1. Containerization involves the stacking of goods in large metal containers. These containers usually conform to international standards of 20 ft x 8 ft x 8 ft or 40 ft x 8 ft x 8 ft. The goods are stacked into the container either at the consignor's premises or at the container terminal and transported as a single unit.

2. These standard sized containers can be transferred between different forms of transport, especially between road, rail and sea, as Lorries, rail wagons and ships have been specially designed to hold them. This integration of different methods of transport ensures that goods are facilitated by using special cranes.

3. There is an increasing tendency for shippers to send general cargo like mail bags, etc. in containers.