A Study on Customary Practices in Iron Ore and Steel Product Shipping Contract – Case of Long-term Shipping Contracts in Korea

• 발행기관: 한국항해항만학회
• 저자명: Hyungjun Kim Jae-bong Kim Yong-sik Oh
• 간행물 정보: 『한국항해항만학회지』제44권 제2호, 128~135쪽, 전체 8쪽
• 주제분류: 공학 > 해양공학
• 파일형태: PDF
• 발행일자: 2020.04.30

영문 초록

Long-term shipping contracts represent the cooperative and coexisting relationships between the shipping and steel industries. Yet, differences between the contract forms for iron ore and steel products have emerged. Specifically, the large proportion of consecutive voyage charters (CVC) is being applied in the iron ore trade, whereas the contract of affreightment (COA) is proportionally higher for shipping steel products. The literature review and in-depth interviews in this study identified through the research model, the characteristics of the shipping and market structure in both markets have significantly contributed to the preference of different long-term contracts. It has been determined that the mutual oligopoly market structure and the characteristics of shipping such as, the small number of suitable vessels in the market, the single fixed load/discharge ports, the long-distance voyages, and the potential risks for fatal accidents because of cargo liquefaction, for the iron ore trade, provide higher contribution to the preference of CVC contracts. In contrast, the consignor oligopoly market structure and the shipping characteristics, such as the greater number of suitable vessels available in the market, the variation in ports, the cargo quantity per shipment, the various load/discharge ports, and the need for experienced carriers for steel product loading in the steel product trade has shown higher preference on the COA contracts as the consignors with superiority over the shipowners, resulting in favorable contract types and conditions for the consignors.

목차

1. Introduction

2. Shipping characteristics and market structure of the steel industry

3. Interview and Analysis of shipping contract

4. Conclusion

키워드

Long-term Shipping Contracts Contract of Affreightment (COA) Consecutive Voyage Charter (CVC) Iron Ore Transportation Steel Product Transportation.