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Shipping Business - 2013

Ics past papers

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176 views2 pages

Shipping Business - 2013

Ics past papers

Uploaded by

ocean.mariner45
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Institute of Chartered Shipbrokers EXAMINER’S REPORT 2013

SHIPPING BUSINESS
INTRODUCTORY REMARKS
Overall, the standard of papers submitted during the 2013 Shipping Business examination showed an improvement compared with
recent years and it was obvious that a majority of students prepared well.
As with previous years, some candidates answered more than five questions which is futile as the examiner can only assess the
first five answers submitted.
For those students who failed this year, some appeared to be inadequately prepared and, with a structured revision programme,
may find themselves in a better position for the 2014 examinations.

1. A number of busy shipping areas and ports are affected to some extent by ice in winter. On the world map provided
illustrate the areas and main ports affected. Explain the problems that ice causes and how shipowners and importers/
exporters attempt to overcome these difficulties.
It is pleasing to report that, as requested, most students used the world map to illustrate their answer, although quite a few of the maps lacked
detail.
Although some excellent answers were submitted, quite a few candidates failed to mention factors such as insurance and FOW etc and some
did identify any alternatives available to traders.

2. Identify the most common areas of maritime fraud and consider what can be done to prevent, detect or deter both
fraud and other types of criminal activity directed against the ship and its cargo.
This question was attempted by many candidates, but some discussed only piracy without mentioning other factors such as insurance,
documentary and monetary fraud.
When discussing deterrents, a few candidates mentioned aspects such as international co-operation between authorities and consultation with
regulatory bodies and some also made reference to the International Maritime Bureau (IMB).

3. Identify the reasons for the formation of the IMO and describe its composition, functions and achievements.
As with Question 2, this question was attempted by the majority of candidates and, while some good answers were produced, quite a few
students failed to explain how the conventions are enforced, mentioned only a few conventions or, in general terms, did not provide enough
or accurate background information relating to the International Maitime Organization (IMO).

4. Discuss the role and functions of three of the following organisations:


(a) International Chamber of Shipping
(b) International Chamber of Commerce
(c) IMB
(d) FONASBA
(e) ITF
Some candidates tackling this question did not demonstrate their knowledge in relation to their chosen organisations and quite a few answers
submitted only contained a couple of sentences which, obviously, cannot impart enough information to the examiner to gain a pass mark.
The majority of candidates provided good answers with very comprehensive detail provided.

5. Explain the different payment methods available to those engaged in international trade and discuss the risks involved
to the buyer and seller in using each method.
In general terms, this question was answered very well, but a few students seemed to confuse the payment terms in international trade with
Incoterms.
Some candidates focussed their answer around Letters of Credit and failed to mention others such as pre-payment, open account, bill of
exchange etc and, whilst some did mention these other methods, the failed to discuss the associated risks involved.

1/2 ICS/ER/SB/201308
Institute of Chartered Shipbrokers EXAMINER’S REPORT 2013

SHIPPING BUSINESS
6. The term shipbroker encompasses a wide variety of activities.
Taking two of the following, explain the main business functions for those in these sectors and in each case comment
upon the practitioner / principal relationship:
(a) Port Agency
(b) Liner Agency
(c) Ship Operations and Management
(d) Ship Sale and Purchase
(e) Dry Cargo Chartering
(f) Tanker Chartering
The majority of candidates who attempted this question provided very good answers, but, in contrast, a large number failed to comment upon
the commercial relationship with the principal.
Overall, this question was answered well.

7. Discuss the benefits and drawbacks of Limited Companies (Private or Public) compared with Partnerships and
comment on the advantages and disadvantages of trading with each type of business organisation.
A few students who tackled this question failed to answer the second part, thereby restricting their chances of obtaining an acceptable grade.
Many candidates failed to comprehend the structure of the commercial entities and very few were able to discuss the wide variations of
benefits and drawbacks.

8. Explain the principle and operation of General Average in relation to international shipping. A few students who tackled
Whilst this question was attempted by only a small number of candidates, a few excellent answers were submitted.
That said, the majority of students were able to provide a few paragraphs and failed to correctly explain the principles of General Average or
indeed the circumstances when it could be declared.
Those who did answer well also mentioned the role of average adjusters in the claims process and, as a result, gained additional marks.

2/2 ICS/ER/SB/201308

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