Definition of liner shipping

Liner transportation refers to the mode of water transportation on a fixed route, in accordance with the established schedule of ports and in accordance with the schedule announced in advance. Liner transportation is suitable for the transportation of general cargo with stable cargo flow, multiple cargo types and small batches. Passenger transport generally uses liner shipping.

The earliest liner transportation was a regular New York-Liverpool route opened by the American Blackball Ship Company in 1818. It was transported by sailboats to transport overseas immigration, mail and goods. In 1924, the United Kingdom opened a liner service between London, Hamburg, and Rotterdam on the steam engine. In the 1940s, it expanded to the Middle East, the Far East, and Australia. Since then, shipping companies such as Japan, Germany, and France have been engaged in liner shipping and have established global shipping routes across the Atlantic Ocean and the Pacific Ocean. China began shipping liners and the Yangtze River in the 1870s. In the early 20th century, liner transportation was carried out in the Yangtze River and other inland rivers. After the founding of the People's Republic of China, Dalian-Shanghai scheduled fixed-line liner shipping routes were opened. In 1961 China Ocean Shipping Corporation was established and began to establish the China Ocean Shipping Fleet and international liner routes.

Liner transportation is divided into regular liner shipping and informal liner shipping. Regular liner transportation is based on fixed vessels, and is based on schedules based on operational cycles. It is organized and operated on the basis of the departure date, that is, scheduled liner shipping. Irregular liner shipping is scheduled, liner, or indefinite. Liner liners are shipped. Except for a few fixed ports, the rest of the ports will be docked depending on the availability of goods. Schedules for certain periods cannot be prepared in advance.

Liner shipping is also sometimes referred to as bill of lading transportation, because the problem occurs in the transportation between the carrier and the shipper only with a bill of lading issued by the shipping company that has the rights and obligations of both the carrier and the shipper. The bill of lading clause clearly states that the consignee must submit and accept the goods in accordance with the schedule, otherwise it shall compensate the carrier for the losses caused thereby.

Characteristics of Liner Transport (1) The carrier and the owner do not sign a charter party contract. Only the bill of lading issued by the shipping company deals with the relevant problems in transportation.
(2) The shipper is usually required to deliver the goods to the carrier's designated port warehouse for delivery, and the consignee picks up the goods at the carrier's designated port warehouse;
(3) The liner carrier is responsible for the operations including loading, unloading of cargo and berths, and is responsible for all costs;
(4) Liner transportation generally has a fixed port, a fixed route, and a fixed sailing time. It does not include demurrage and despatch charges. Liner freight is relatively stable.

Liner Shipping Billing Methods Liner freight rates are mainly calculated as follows:
(1) It is calculated based on the gross weight of the goods, which is indicated by "W" in the tariff.
(2) It is calculated based on the volume of the goods and indicated by "M" in the tariff.
(3) Calculate the higher one of the two criteria of weight or volume, and use the “W/M” on the tariff.
(4) It is calculated based on the value of the goods, which is indicated by "Ad. Va1".
(5) Calculated according to the number of goods.
(6) The owner and shipping company are provisionally negotiated.

Note: Liner freight is mainly composed of basic freight rates and surcharges. The basic freight rate refers to the fee charged for the goods shipped to the basic port of the liner route. The surcharge is the cost added by the shipper to compensate for extra expenses or expenses in transit according to different situations.

Shipping formula (by weight or ton):
Freight = weight tons (or size tons) × grade rate × (1 + surcharge rates)