Introduction

LEARNING SHIPPING

By Bobby Tordesillas

(Author is currently President of Desills Shipping Services, Inc, a Ship brokering firm based in the Philippines. Took up Professional Ship Management Course at the Norwegian Shipping Academy in Oslo, Norway in 1984-85 as a government scholar, where he graduated 2^nd place. Have acquired 30 years of experience in international shipping as head of chartering, pricing in liner trade,

maritime insurance and claims and corporate planning in National Shipping Corporation of the Philippines, and head of Business Development and Ship brokering in NCCI Marine and YHK Shipping. Was also a columnist in the Shipping Section of Manila Chronicle and later on Manila Standard Today, both popular broadsheets in the Philippines from the mid 1980’s to mid 1990’s and authored a pubished book Containerized Liner Shipping.)

Nov. 4, 2011

INTRODUCTION

In my 30 years of experience in international shipping, I find that several exporters and importers do not want to be involved in shipping.  In the Philippines in particular, about 80% to 90% of exporters move their cargo on F.O.B basis while about the same percentage of importers bring in their cargo on C.I.F. terms.

There are several reasons for this.

The very obvious reason for this is first of all, traders are not taught shipping  in  management schools. Even subjects in International Business go to the extent of only defining some shipping terms but do not go further to educate students on the intricacies of charter parties, bills of lading, contracts of affreightment, chartering, liner shipping, formulating shipping strategies, shipping terms  and so on.

Second, some shippers find the task of shipping a nuisance and very time consuming and would prefer to spend that time improving their businesses.

Third, some shippers think handling shipping by themselves would be a risk. They may not find a ship on time. Their cargo may get lost during transit. Their cargo may be damaged.  And they want to avoid these risks.  Passing this job on to the person sitting across the table would make life a lot easier for them or so they think.

And finally, some exporters and importers are afraid of getting into liabilities because they do not understand the terms and conditions of shipping contracts.  They are also afraid they may  be swindled by sweet talking ship owners.

This kind of attitude is perfectly normal and is expected from someone treading on unfamiliar ground.

There is the fear of the unknown.  There is the lack of desire to learn.  And there is a lack of motivation to change one’s ways.

Why indeed should one bother to be involved In shipping?  (to be continued on Nov. 11, 2011)