The commercial operating modes of ships

In maritime transport, there are two types of commercial ship operations:

• Liner shipping; and
• Tramping (on-demand transport).

1. Liner shipping

Liner shipping is a service provided regularly by a shipping company on predetermined dates and according to a fixed route. It involves ship departures on fixed days, as well as designated ports of call.

Liner shipping is characterized by the regularity of voyages, frequency, service reliability, fixed ports of call, and the publication of rates and schedules.

The ships engaged in liner shipping include general cargo ships, container ships, refrigerated ships (reefers), multipurpose vessels, and roll-on/roll-off (Ro-Ro) vessels, among others.

Modes of liner shipping operations

There are three modes of liner shipping operations:

• Port-to-port segmented service: Redistributes cargo to secondary ports. This service is reserved for feeder lines.
• Pendulum service between major regions: This is a round-trip itinerary in which a ship travels one way, calling at several ports to load and unload cargo before making the return trip to its starting point. This service is used, for example, between Northern Europe and Japan or between Southern Europe and Japan.
• “Round-the-world” service (east-west): Provides complete market coverage for global operators.

This mode of operation generates higher revenues as it is more attractive to shippers. It offers direct access to multiple markets without requiring transshipment.

2. Tramping

Tramping (from the English word “tramp,” meaning vagabond) is an on-demand maritime transport service carried out by commercial vessels. The ships used in tramping are often bulk carriers and multipurpose cargo ships. They undertake specific voyages to fulfill short- or long-term contracts, where the entire cargo for the voyage belongs to a single owner.

Ships engaged in tramping transport bulk solid or liquid goods, such as grain, coal, ore, sulfur, phosphate, wood, oil, etc.

Distinction between liner shipping and tramping

The main distinction between tramping and liner shipping is legal, concerning the contract governing the relationship between the cargo owner and the carrier.

In the case of tramping, it is a charter contract, whereby “the shipowner agrees, in exchange for payment, to make a vessel available to a charterer.” In liner shipping, it is a transport contract, whereby “the carrier undertakes to deliver a specific cargo.”

Another way to distinguish them is based on the types of goods transported. Tramping is generally associated with bulk cargo, mainly raw materials, while liner shipping deals with general cargo.