In shipping, an industry unknown to many and invisible to most, tramp shipping is arguably one of its least known segments.
Although deriving its name from the unflattering British meaning of "tramp" as itinerant beggar or vagrant, designating ships that do not have a fixed schedule or published ports of call, tramp shipping today represents the large majority of cargo transported around the world. Trampers are used mainly for carrying bulk commodities or homogeneous cargoes in whole shiploads, with each voyage separately negotiated between the ship's owner and the shipper, usually through a broker.
Tramp shipping was the focus of a seminar organised by ECSA in association with Clarkson Research during the European Shipping Week. The aim of the seminar was to present an updated version of a 2004 Clarkson study on tramp shipping and, more specifically, to shed some light on the facts surrounding the vast fleet of liquid and dry bulkers, as well as other vessels, that make up the tramp shipping family.
“It is often forgotten that bulkers, and specialised vessels, in other word trampers, are the most populous category of ships ploughing the seas” said Patrick Verhoeven, ECSA Secretary General. “They are the real workhorses of the industry but are overshadowed by other segments where bigger companies can invest in a corporate image”.
Tramp shipping has its own, unique features, and in many ways satisfies several of the characteristics of the perfect Smithian competition model: The commodity is homogeneous; entry costs are very low; many companies are competing for business and information flows make the markets very transparent. The freight rates achievable in these markets are highly volatile, depending on market circumstances.
“Bulk / tramp shipping is probably the last remaining major international sector in the real global economy operating under conditions of virtually perfect competition. This has led since World War II to shipping being the most efficient, cost and energy effective facilitator of world trade, growth and prosperity” comment John C. Lyras, President of Paralos Maritime, Board Member of ECSA and speaker at the ECSA seminar. “European based shipping companies still control approximately 40% of the world bulk fleet offering quality services to global trade. This achievement will depend in the future of the sector’s ability to retain its international competitiveness and its traditional maritime expertise. It is therefore my hope that participants from the European Commission services found the seminar to be enlightening and informative.”
The updated Clarkson study can be found here
For more information please contact:
Dimitrios Banas
Communications and information Manager
European Community Shipowners' Associations
banas@ecsa.eu