NATIONAL SENIOR CERTIFICATE EXAMINATION

NOVEMBER 2023

MARITIME ECONOMICS

Time: 3 hours 300 marks

PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY

1. This question paper consists of 15 pages and an Answer Sheet of 1 page. Please
check that your question paper is complete.

2. Answer Question 1 on the Answer Sheet provided and hand it in at the end of the
examination. Remember to write your examination number in the space provided.

3. Read the questions carefully before answering.

4. Answer all the questions.

5. Answer the questions in the same order that they appear on the question paper.

6. Show all working where calculations are involved.

7. It is in your own interest to write legibly and to present your work neatly.

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QUESTION 1 MULTIPLE-CHOICE QUESTIONS

Answer these questions on the Answer Sheet provided. Place an X in the block on
the letter that is the correct answer to the question. You must answer the
questions in the same order in which they appear on this question paper.

1.1 Countries that currently supply large numbers of seafarers to the global fleet
are:

A Brazil, Russia, South Africa, India

B Panama, Liberia, Marshal Islands, Singapore
C China, Philippines, Indonesia, Russia
D Philippines, Panama, China, Liberia (2)

1.2 How many navigating/deck officers will be allocated for a safe manning of a
large modern ro-ro ship?

A One
B Two
C Three
D Four (2)

1.3 A trainee engineering officer on board a ship is known as a:

A Deck Cadet
B Deck Trainee
C Engine Cadet
D Engine Trainee (2)

1.4 These vessels depend on winds and currents to make their way through the
water:

A Ancient motor vessels

B Sailing ships
C Steamships
D Harbour tugs (2)

1.5 From the list of ships' fuels listed below, which one is the cleanest?

A HFO
B MDO
C MGO
D LNG (2)

1.6 An African country with the most ships on its registry:

A Panama
B Liberia
C Singapore
D South Africa (2)

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1.7 The important detail concerning the ship's registration that will appear on the
ship's stern is the:

A Port of registry
B Port of load/discharge
C Classification society
D Country of registry (2)

1.8 A country in which a ship has been flagged out is sometimes known as a:

A Coastal state
B Flag of convenience
C Country of registration
D Panama State (2)

1.9 Some shipowners prefer to flag out their ships to countries where they can
pay:

A Income tax
B Negative tax
C Tonnage tax
D Corporate tax (2)

1.10 An organisation to approve a ship's major structural modifications:

A Classification Society
B Society of Master Mariners
C P & I Club
D Port State Control (2)

1.11 The process of settling maritime disputes pertaining to salvage operations is

known as:

A Dispute Settlement
B Arbitration
C Court Order
D Atrabition (2)

1.12 Ship A, on a coastal passage, collided with a lighthouse. As a result of the

collision, Ship A's hull was badly damaged and there was an ingress of water
damaging the cargo of wheat in the number one hold. The lighthouse partially
collapsed and stopped working. Which insurance will cover the damage of
Ship A's hull?

A Ship A's P&I Club

B Ship A's Hull and Machinery
C Ship A's FFO
D Cargo Insurance (2)

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1.13 Refer to the scenario given in Question 1.12. Which insurance will cover the
damage to the lighthouse?

A Ship A's P&I Club

B Ship A's Hull and Machinery
C Ship A's FFO
D Cargo Insurance (2)

1.14 Refer to the scenario given in Question 1.12. Which insurance will ultimately
cover the damage to the cargo?

A Ship A's P&I Club

B Ship A's Hull and Machinery
C Ship A's FFO
D Cargo Insurance (2)

1.15 A seven-holds Panamax bulk carrier is loaded in holds one and two, as well
as holds six and seven. Which of the following hull stresses will she
experience?

A Hogging
B Sagging
C Torsion
D Forward and Aft Trim (2)

1.16 Which of the following is the world's busiest container port?

A New York
B Durban
C Singapore
D Shanghai (2)

1.17 A sea area that extends 12 nautical miles from a baseline of a littoral state is
known as:

A Territorial waters
B Contiguous zone
C Exclusive Economic Zone
D Continental shelf (2)

1.18 A maritime convergence zone that is highly important for the world's supply
of crude oil is:

A Strait of Dover
B Strait of Hormuz
C Strait of Malacca
D Strait of Gibraltar (2)

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1.19 Incoterms clearly define the shipping responsibilities and liabilities between
the:

A Carrier and ship

B Shipper and consignee
C Shipper and carrier
D Shipper, carrier, and consignee (2)

1.20 A document that sets out the conditions relating to the ship's charter is called:

A Bill of Lading
B Charterparty
C Voyage instructions
D Notice of readiness (2)

1.21 A South African organisation that is responsible for the control of cargo
coming in and out of the country:

A South African Revenue Services

B South African National Ports Authority
C South African Department of Home Affairs
D South African Maritime Safety Authority (2)

1.22 Forming the bases of the aquatic/marine food chain are:

A Orcas
B Seals
C Zooplankton
D Phytoplankton (2)

1.23 A ship steaming off the west coast of Southern Africa from Cape Town to
Walvis Bay might encounter thick fog that is caused by:

A Cold moist air from the tropical regions resting over the cold Benguela
current.
B Cold moist air from the tropical regions resting over the warm
Benguela current.
C Warm moist air from the tropical regions resting over the cold Agulhas
current.
D Warm moist air from the tropical regions resting over the cold
Benguela current. (2)

1.24 During the Southern Hemisphere's winter, a ship sailing from Port of Santos,
in Brazil to Gqeberha could encounter a:

A Hurricane
B Monsoon
C Mid-latitude cyclone
D Typhoon (2)

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1.25 Sailing from the United Kingdom to New York, America, in July, a ship could
encounter a:

A Willy-willies
B Hurricane
C Monsoon
D Typhoon (2)
[50]

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QUESTION 2 THE MARITIME WORLD

2.1 The IMO-Norway GreenVoyage2050 Project is supporting shipping's

transition towards a low-carbon future. This global project is supporting the
reduction of Greenhouse Gas (GHG) emissions from shipping.

2.1.1 Name TWO gases that are emitted by ships from burning fuel in their
main engines. (2)

2.1.2 Why is it important that there is a reduction of greenhouse gas

emissions from ships? (4)

2.1.3 What are shipowners currently doing to reduce greenhouse gas

emissions from their ships? (4)

2.1.4 Shipowners are also exploring ways to incorporate wind propulsion

on their vessels by mounting sails and kites. Give TWO advantages
of incorporating wind on ship propulsion. (4)

2.1.5 Which IMO convention or code deals with the prevention of air
pollution by ships? (2)

2.2 The following table shows the number of ships that called into the Port of
Gothenburg's container terminal in each quarter of the year from 2014 to
2018. Quarter 1 = Jan to Mar, quarter 2 = Apr to Jun, and so on.

Study the table and answer the questions set:

YEAR QUARTER SHIPS ARRIVAL CONTAINERS TEUs TOTAL HOURS

2014 1 210 127 801 216 859 3101
2014 2 212 124 097 209 960 3227
2014 3 198 120 797 202 955 3475
2014 4 175 117 605 199 159 2943
2015 1 170 121 512 205 252 3512
2015 2 204 121 510 208 551 4066
2015 3 206 120 683 203 549 3337
2015 4 184 114 001 192 287 3203
2016 1 119 124 066 212 392 3516
2016 2 170 114 217 190 441 3777
2016 3 184 122 225 217 112 3456
2016 4 167 110 373 158 288 3361
2017 1 159 107 362 179 748 3415
2017 2 145 81 354 133 281 3247
2017 3 142 91 245 149 461 3027
2017 4 160 104 677 176 332 3161
2018 1 161 111 090 188 593 3280
2018 2 162 112 824 190 485 3332
2018 3 130 106 673 179 415 2474
2018 4 134 113 252 191 390 2559

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2.2.1 What type of ships does this data represent? (2)

2.2.2 What does TEU stand for? (2)

2.2.3 When did the port experience the least number of ships on their
berths? (2)

2.2.4 What was the highest number of TEUs recorded in one quarter? (2)

2.2.5 What was the total number of ships that called on Gothenburg Port
in 2018? (4)

2.2.6 What is the approximate number of hours that each ship spent in
Gothenburg Port in 2018? (6)

2.3 Predicting a massive future shortage of seafarers, IMO has launched various
campaigns to attract young people to choose careers at sea by highlighting
the positive benefits of choosing a career at sea. The campaign will show that
seafaring is a viable, attractive, and exciting career option.

2.3.1 As a junior staff member on a learnership programme at a maritime

company, you have been tasked to design a poster that will be used
for the promotion of sea-going careers. Design an eye-catching
poster to be used by your company. Amongst other things, your
poster MUST have the following:
• At least FOUR positive benefits of choosing a career at sea.
• An attractive slogan for your campaign. (12)

2.3.2 Give TWO reasons why there has been a decrease in the number of
West-European seafarers. (4)
[50]

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QUESTION 3 SHIPPING OPERATIONS

3.1 Following are details about the charter of the cargo ship MV AMANI (valued
at $81 million) chartered to move cargo from Gothenburg Port in Sweden to
Durban (8700 nautical miles away). She is replacing the company's existing
ship currently undergoing major repairs.

You may be required to consult these details for questions that follow
throughout the paper.

Built 2011 Tsuneishi Holdings Corporation, Japan

IMO Number 9296574
Owners P T Adamos Shipping Ltd, Greece
Charterers Jensen-Nielsen Shipping Co.
Port of Registry Monrovia
Classification Society Lloyd's Register
Length over all 179.00 metres
Beam 32.00 metres
Summer Draught 10.15 metres
Depth 21.62 metres
DWT 16 886 t
Propulsion Single shaft; fixed-pitch propeller
Installed power Mitsubishi diesel engine, 19 140 hp (14 270 kW)
Service speed 19.2 knots
Crew 24
Cargo 1700 cars and 70 construction vehicles
Ramps Stern ramp and starboard midship ramp
Port of load Gothenburg Port, Sweden
Origin of cargo Perdesen Vehicle Traders Ltd
Cargo destination Agarwal Vehicle Distributors, Isipingo, Durban
Insurers Northern P&I Club
Thames Hull and Machinery
TMT Cargo Insurers

3.1.1 What type of cargo ship is MV AMANI? (2)

3.1.2 Give TWO distinguishing factors that would enable you to identify this
type of vessel when you see it. (How she is constructed …) (4)

3.1.3 Which country's flag will she fly on her stern when loading in the Port
of Gothenburg? (2)

3.1.4 Her DWT is 16 886 t. What does this mean? (2)

3.1.5 According to which IMO convention or code are the 24 crew

members trained and certified? (2)

3.1.6 How will her classification society be abbreviated on her Plimsoll line
(load line)? (2)

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3.2 3.2.1 How do we know that MV AMANI has been flagged out? (2)

3.2.2 Give THREE possible reasons why her owners chose to flag her out. (6)

3.2.3 What role has her flag state been playing after she was delivered to
her owners? (6)

3.2.4 MV AMANI has been sold to different owners twice, i.e., she has had
three owners. How many times has her IMO number changed?
CHOOSE: ZERO, TWICE (TWO TIMES), THREE TIMES. (2)

3.3 MV AMANI arrived at Gothenburg Port to commence her charter at 00:01

6th May. She began loading at 08:00 on the same day. Following are other
details concerning the loading process:
• Cars were loaded first through both ramps at a rate of 35 cars per hour
per ramp.
• After the cars, construction vehicles were loaded using the stern ramp at
a rate of 10 vehicles per hour.
• Total breaks amounted to eight hours.
• After all cargo was loaded, lashing carried on for another three hours.
• Upon completion of lashing, attempts to close the stern ramp failed
because of a hydraulic winch failure. Repairs took four hours.
• After loading processes and securing of the ship, she spent three more
hours in port before she could sail.

3.3.1 How many hours did the loading of cars take, excluding breaks?
Round off to the next hour. (6)

3.3.2 How many hours did the loading of construction vehicles take,
excluding breaks? Round off to the next hour. (6)

3.3.3 When was the lashing of cargo completed? (6)

3.3.4 What was her ETD Gothenburg Port? (4)

3.3.5 Which ship side was against the quay at her berth? (2)

3.3.6 What clearances need to take place before a ship can sail? (4)

3.3.7 45 hours (breaks included) was the agreed loading time.

(a) What is the proper term for this agreed loading time? (2)

(b) In which document was this agreed loading time stipulated? (2)

(c) Which TWO parties agreed and signed the document

mentioned above? Give the actual names of the parties. (4)

(d) Did MV AMANI take more or less time to load? (2)

(e) Which was payable? Demurrage or dispatch? (2)

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(f) Who was liable to pay? (2)

(g) What is the appropriate term for the four hours delay spent on
fixing the ship's stern ramp winch? (2)

3.4 MV AMANI was safely piloted out of Gothenburg Port. Pilot disembarked after
taking the ship to her beginning of sea passage position. About two days
later, the ship made a slight starboard turn through the straits and entered
the English Channel steaming at 12 knots. After entering the channel, speed
increased to 15 knots. Later that day, MV AMANI made a port turn out of the
English Channel into the rough-weathered Bay of Biscay and developed a
severe list. The third mate who was the officer on watch (OOW) immediately
called the master who gave the order to stop engines and expressed doubts
in respect of the stability of the vessel. As the list increased, the ship's
propeller and rudder came clear of the water. The ship grounded on a sand
bank off the Bay and settled with a list that would eventually reach 52°. The
OOW broadcasted a distress call on the command of the master.

The tugs Svitzer Ferriby and Svitzer Surrey were sent to the assistance of
MV AMANI. A Severn-class lifeboat from Santander and an Atlantic 85-class
lifeboat from Cowes were called out. Coastguard helicopter from RNAS Lee-
on-Solent (HMS Daedalus) was also called out to assist.

Svitzer Ferriby arrived at the scene. One crew member aboard MV AMANI
broke an arm and a leg when he fell and slid for about 18 meters in a corridor
as the ship listed. A crew member jumped into the water as a lifeboat
approached and was rescued. Six crew were winched aboard the helicopter
from Lee-on-the-Solent and landed there. RFA Lyme Bay assisted in the
coordination of the rescue efforts. A crew member from the Yarmouth
Lifeboat was winched onto MV AMANI to assist with the evacuation. All crew
except captain, chief engineer and chief officer had been rescued by 00:15
the following day. Salvage contract was signed between MV AMANI and
Svitzer who were appointed as Salvers.

The ship was carrying a cargo of 1700 cars and about 70 construction
vehicles. All cargo was valued at $37 million, with $1 million worth of bunkers
(owned by shipowner).

The first attempt to refloat the ship failed and was rescheduled for a later date
but cancelled because more water than expected was discovered inside the
vessel. About three days later Svitzer Ferriby managed to refloat MV AMANI
assisted by high tide and strong winds. She was then taken in tow and
moored approximately two miles east at Alpha Anchorage, in France, to await
further salvage operations. Salvers managed to reduce list to 5° and towed
her into Nantes ‒ Saint Nazaire Port for repairs. The majority of cars were not
damaged. All repairs done in dry dock amounted to $1.4 million.

The investigation found that plans for the loading of the cargo had not been
changed despite the change in itinerary. No calculation of the vessel's
stability had been made. The weight of cargo on board had been
underestimated, being 265 tonnes greater than estimated. The ship's ballast
water system was not fully serviceable.

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3.4.1 What is the keyword used for broadcasting a distress call on VHF
radio? (2)

3.4.2 What is the name of a salvage contract signed by the Master of MV

AMANI and Svitzer? (2)

3.4.3 If you were the master of the salvage tug, would you rather have
invoked the SCOPIC clause? YES/NO. (2)

3.4.4 Give a reason for your answer to Question 3.4.3. (2)

3.4.5 Which organisation would have inspected and given permission for
MV AMANI to be towed to Anchorage Alpha? CHOOSE: Flag State,
Port State, Classification Society, P&I Club. (2)

3.5 MV AMANI had to go into dry dock to undergo hull repairs. If three metres on
either side of the ship, and six metres ahead and astern were left open, what
was the length and breadth of the dry dock? (4)

3.6 Which TWO organisations will declare a ship seaworthy after the repairs? (4)

3.7 What is the name of the insurance that will cover the medical bill of a crew
member who broke his arm and leg? (2)

3.8 Calculate the share of general average payable by the ship owner for the
repairs that amounted to $1.4 million. (6)
[100]

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QUESTION 4 INTERNATIONAL TRADE

4.1 With regard to the cargo shipment in Question 3, who is the:

4.1.1 Shipper (2)

4.1.2 Carrier (2)

4.1.3 Consignee (2)

4.2 It was agreed that the cargo of construction vehicles be shipped with Incoterm
FAS (Free Alongside Ship). Between the Master, Shipper, Carrier,
Consignee and Agent, who was responsible and liable for each of the
following:

4.2.1 Driving the vehicles into the ship. (2)

4.2.2 Ocean freight for cargo shipment. (2)

4.2.3 Discharging the vehicles in Durban Harbour. (2)

4.3 4.3.1 Which important strait did MV AMANI sail through before entering the
English Channel? (2)

4.3.2 Just after sailing through the English Channel, onto which sea or
ocean did she enter? (2)

4.3.3 Without delays, how many days would MV AMANI's voyage have
taken? (6)

4.4 Sailing to Durban, MV AMANI will pass Cape Agulhas, an important

convergence zone in maritime international trade.

Write a note on the importance of Cape Agulhas as a Maritime convergence

zone. Your note must include its strategic importance, cargoes that pass
through the zone, and times when the zone was on the news. (10)

4.5 A South African agency division issued a statement of concern that in recent
years there has been a 28.8% increase in the imports of cars into South
Africa. They are concerned that this behaviour may see the country's local
automotive industry collapse.

4.5.1 Which agency division issued the above statement? CHOOSE:

Immigrations; Customs; Port health; or ISPS. (2)

4.5.2 Explain what South Africa should do to ensure that the country's
automotive (vehicle) industry continues to grow in size and in
profitability. (8)

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4.6 Agarwal Vehicle Distributors sold 120 cars to Gari Car Dealership in Kenya.
They were exported in 40-foot containers (four cars per container) to Port of
Lamu (Kenya). Ongoti Shipping Line (OSL) provided both the land-based
transportation of the containers and the ocean leg, i.e., they provided the
trucks from the shipper's premises to Durban Harbour, a ship to the Port of
Lamu, and trucks from Lamu Port to the consignee's premises.

4.6.1 How many containers were used for this consignment? (4)

4.6.2 With a total freight of $7800 per container, how much was payable
for the shipment of all the containers? (4)

4.6.3 What type of bill of lading was issued by Ongoti Shipping Line, seeing
that they were responsible for the land and ocean leg of the
shipment? (2)

4.6.4 What is another name for the service provided by OSL from the
shipper's premises to the consignee's premises? (2)

4.6.5 What information is found on the back of the bill of lading? (2)

4.7 The following is the schedule for the containerships belonging to Ongoti
Shipping Line:

OSEAAN LEOATLE LWANDLE OCEAN

Cape Town 09–10 MAY 16–17 MAY 23–24 MAY 30–31 MAY
Gqeberha 11–12 MAY 18–19 MAY 25–27 MAY 01–02 JUN
Durban 14–17 MAY 21–24 MAY 28–31 MAY 04–07 JUN
Beira 19 MAY 26 MAY 02 JUN 09 JUN
Dar es Salam 21–22 MAY 28–29 MAY 04–05 JUN 11–12 JUN
Lamu 23–25 MAY 30–01 JUN 06–08 JUN 13–15 JUN
Mogadishu 28–29 MAY 04–05 JUN 11–12 JUN 18–19 JUN
Dar es Salam 04–06 JUN 11–13 JUN 18–20 JUN 25–27 JUN
Durban 10–11 JUN 17–18 JUN 24–25 JUN 01–02 JUL
Cape Town 15–16 JUN 22–23 JUN 29–30 JUN 06–07 JUL

4.7.1 Assume that MV AMANI arrived in Durban at 07:40 on 27 May. Which

is the earliest ship that was used for the shipment of the containerised
cars? (4)

4.7.2 How many days was the voyage, from time of departure to arrival at
Lamu? (4)

4.7.3 If it took one day for the containers to reach Gari Car Dealership in
Lamu from the port, when did they arrive at their final destination? (4)

4.7.4 How many South African ports does Ongoti Shipping Line serve? (2)
[70]

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QUESTION 5 MARINE ENVIRONMENTAL CHALLENGES

5.1 MV AMANI encountered fog off the Namibian coast towards the South African
West Coast. Explain how this fog was formed. (6)

5.2 5.2.1 Besides overfishing, which TWO other acts by ships and humans
may disrupt the marine ecosystem? (4)

5.2.1 Explain why overfishing is such an unwanted act. (6)

5.2.2 Give TWO practical actions that can be taken to eradicate

overfishing. (4)

5.3 Give the correct term for each of the following:

5.3.1 A tropical revolving storm when experienced in the Far East region. (2)

5.3.2 Cargo that cannot be loaded in rain. (2)

5.3.3 The unit of measurement for wind speed at sea. (2)

5.3.4 The apex predator in the marine food chain. (2)

5.3.5 South African port built on a river mouth. (2)

[30]

Total: 300 marks

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