Section A

A ship will steam from Port A to Port B, and the owner has the option of calling at Port X along the route to bunker.

Distance Port A to Port X 6000 nautical miles
Distance Port X to Port B 2550 nautical miles

 

Operating costs  $6500 per day
Cargo to be carried 40000 tons steel (if full bunkers are carried)
Freight rate $42 per ton
Service speed 15 knots
Bunker capacity  2500 tons
Bunkers on board the ship at Port A 450 tons
Fuel consumption 35 tons per day at sea only
Bunker price at Port A $320 per ton
Bunker price at Port X $414 per ton
Expected port costs at X if the ship calls there  $120000
Expected time in Port X (if calling) 1 day
  1. How many days will the ship take to steam from A to X?
  2. How much fuel will she use on that part of the voyage?
  3. Assume she needs enough fuel to reach X plus five extra days’ steaming.

3.1   How much fuel should she have on board when sailing from Port A?

3.2   How many tons of extra cargo can she carry if she only has on board the required amount for the voyage A to X plus five extra days?

3.3   How much will she earn from the extra cargo carried?

3.4   How much extra will it cost in terms of fuel and operational costs to call at X?

  1. How many days will the ship take to steam from X to B?
  2. How much fuel will she use on that part of the voyage?
  3. Assume she takes only enough fuel at X to steam to Port B plus five days’ extra.

6.1   How many tons of fuel did she have left on reaching Port X?

6.2   How many tons of fuel will she need to take at Port X?

6.3   How much will that fuel cost?

  1. Calculate the costs (operational and fuel) of a voyage from Port A to Port B without calling at Port X.
  2. How much will the ship earn for the voyage?
  3. Calculate the costs (operational and fuel) of a voyage from Port A to Port B but calling to bunker at Port X.
  4. Will it be beneficial for the ship to call at X or should she omit the call at X?
  5. Which routing will give the ship more profit for the voyage?

 

Section B

About 45 ships pass the Cape each day, yet only a few call to work cargo or to bunker.

  1. Why is it important to encourage these passing ships to bunker in South African ports?
  2. What can be done to encourage them to call at South African ports?