Trading and shipping working together

Overview

A full online course for those dealing with oil trading and shipping 

International oil trading means moving crude oil and products on tankers. 

How do traders hire tankers?How are the costs calculated? How important is the cost of shipping in the oil market? Details of all of the techniques to support successful oil trading and shipping have been implemented into this 4-day virtual course led by two experts - an experienced ex-oil trader and a globally renowned shipping expert with over 47 years of practice in the industry.

The course content is designed as a means to give you a sound overview of how the shipping industry and the trading industry work in tandem to move oil around the world. The emphasis of the course is on sound commercial practice, drawing on the working knowledge and extensive experience of the course leaders. 

Each session lasts four hours and the participants will share an online PowerPoint and live board explanations. The course is enhanced with practical sessions to provide you with hands on experience of decision making in this area and supported with real scenarios and worked examples.

DAY 1:  

This session will cover vessel chartering. You will understand how to calculate freight rates and also look at what the charter party does and does not permit. Both sessions also include time to discuss operational issues which arise and how to deal with them.

Session 1: How much does it cost to ship oil? 
09:00 -11:00 (with 15 min break)

How are oil tankers chartered?
-Owned and operated vessels and Bare Boat Charters
-Time Charters, Spot charters, COA’s 

How do shipowners calculate freight?
-Prices of vessels
-Fixed operating costs
-Variable operating costs 

Shipping Markets and Prices
-Supply and Demand for shipping
-What else drives prices? 

Chartering a Vessel: what do you pay?
-Lump sum voyages
-Dollar per tonne or barrel
-Worldscale: flat rates and multipliers

30 min Break

Session 2: Financial Risks. How Trading and Shipping Work Together
11:30 -14:00 (with 15 min break)

Financial Risks in Shipping: Exposure and Hedging

Owning and Chartering Vessels
Hedging: bunker prices and freight prices

Trading and Shipping Working Together

 Arbitrage: understanding risk and timing

DAY 2:  

These sessions will cover vessel chartering. You will look at what the charter party does and does not permit, responsibility of owners and charterers in voyage/time charter trips. Our course expert will outline the rules to follow in order to achieve a good negotiation which will play in your favour. Course participants will analyse the role of shipbrokers in assisting ship owners and operators to connect with cargo interests as charterers.

Both sessions also include time to discuss operational issues which arise and how to deal with them.

Session 1: Chartering Practice - Vessel Employment Methods
09:00 -11:00 (with 15 min break)

Vessel Employment Methods
- Voyage Chartering
- Period Timechartering
- Trip Timechartering
- Longer Term Time Charter / Contracts of Affreightment (COAs)

30 min Break

Session 2: How shipbrokers help traders and ship operators
11:30 -13:30 (with 15 min break)

- How shipbrokers help traders and ship operators
- Remuneration
- Fixture negotiations
- Methods used and knowledge required during negotiation

Duration: 4 hours

DAY 3:  

The Day 2 content provides a detailed look at frequently used common proforma voyage and time charter parties. The knowledge acquired will help you to increase your understanding of these contracts.

A Bill of lading is one of the most important documents in the shipping and commercial arenas. The course participants will learn the main functions of this document and understand their importance to all the participants of a charter. The lecturer will also discuss various international regulations which impact on careful and correct use of these documents.

Session 1: Tanker Charter Parties
09:00 -11:00 (with 15 min break)

- An overview of the main tanker Voyage
- The details of some clauses
- Voyage and Time Charter Parties for tankers

30 min Break

Session 2: Bills of Lading
11:30 -13:30 (with 15 min break)

- Explanation and practical approach
- Various functions and their importance to all parties
- Endorsed Bills of Lading
- Identity of a “carrier” ~ ship owners and operators
- Signatories of Bills of Lading
- Letter of Credit
- Various bankers’ regulations
- UCP 500 v UCP 600 & ISBP

Duration: 4 hours

 
DAY 4:  

Laytime remains one of the most disputed areas of Charter Party operations: solutions to laytime problems are usually practical rather than purely legal. The purpose of this session is to show how such problems arise and how compromise is usually the best way.  A practical view is given in the solving and case handling of Charter Party disputes.

Session 1: Laytime & Demurrage calculations for tankers
09:00 -11:00 (with 15 min break)

- Laytime – Definition and Purpose
- Documents –C/P and commercial contract clauses, NOR, SOF, Plog
- Laytime & Demurrage calculations for tankers with major court cases and worked examples

30 min Break

Session 2: Dispute Resolution Methods
11:30 -13:30 (with 15 min break)

- Mediation v Arbitration v Litigation
- Advantages and disadvantages
- Appropriate choices
- Governing Laws

Duration: 4 hours

COURSE INSTRUCTOR 1

Your trainer for the shipping part of the programme has been involved in shipping and trading for more than 45 years. He is the fourth generation of a shipping family, has been a member of the Baltic Exchange since 1976 and has worked with a Lloyd's underwriter and as a shipbroker, ship owner, gasoil futures broker, charterer and commodities trader in London and abroad. Providing maritime and commodities commercial claims consultancy and bespoke corporate training worldwide. He has been arbitrating on maritime disputes since 1994. He is a Fellow of the Institute of Chartered Shipbrokers, a Fellow of the Chartered Institute of Arbitrators and a Visiting Professor at the IMO's World Maritime University in Malmo and at Shanghai Maritime University.

COURSE INSTRUCTOR 2

He has extensive experience in trading oil and energy in Europe, Africa, Middle East and Asia during a career that spanned eighteen years. He has worked for oil majors, top trading houses and investment banks. His experience was rounded out with: - several years of trading derivatives for investment banks in the Asia-Pacific region; - trading for refining systems as well as the challenges of running proprietary physical trading books in Europe, Africa, and Asia; - acting as an expert witness on trading, markets, and quantum settlement in disputes on cargoes and contracts.