TRAMP TRADE

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M.COM First Year Tutor Marked Solved Assignment

Course Code: IBO – 05
Course Title: International Marketing Logistics
Assignment Code: IBO-04/TMA/2019-20
Coverage: All Blocks

IBO – 05 International Marketing Logistics Solved Assignment for 2019-20

Q4.) Write short notes on the following :

(d.) Tramp Trade

Ans: Tramp trade refers to the carriage of bulk cargo, which are homogenous in nature in large quantities, either from one port to another or between few specified ports. Shipping services catering to bulk cargo carriage are said to be called trump shipping.

Tramp shipping is also called catering and the contract of carriage for it is called 'Charter Party'. In tramp trade, the chartered can hire/charter the entire vessel or a part of it as per their requirements. There are specialized tramp ships for different cargo types. For example, dry bulk carriers for carrying ores, grains, and tankers for carrying liquid bulk cargo. Cargo carried in tramp trade is characterized by a great weight, low-value merchandise, and has no 'special' handling/preserving requirements. The tramp ship merchandise does not require numbering or labeling.

Loadibility in tramp trade is subjected to seasonal changes. This uncertainty reduces the potential of tramp ships for securing return merchandise. Tramp ships have no fixed routes, nor fixed schedules. Freight rates are determined by the free market forces (demand and supply) and are negotiated between the shipper and the ship-owner.