Савчук. Foreign trade

THE SHIPPING COMPANIES POINT OF VIEW

Shipowners often complain of poor facilities at ports. Sometimes tugs do not arrive or cranes are broken. Delays keep expensive ships waiting and waste money. Port congestion is caused by some traders allowing their goods to pile up on the wharves, or by sudden large increases of traffic. Once the Nigerian government ordered 16 million tons of cement. There were so many tramps trying to berth at Lagos that all trade was stopped. World trade recessions are also bad for shipowners. The 1960s saw a big surplus over demand for ships built and many vessels were laid up.

Find words or phrases in the following sentences which are like expressions in the text:

A The British often grumble about the weather.

B Farmers use tractors to move their machinery.

C Building containers is very costly.

D there was a big traffic jam in the high street.

E It was difficult to find a parking space for the car.

F The farmer had more than he could sell.

G He stored as much as possible of the extra produce.

THE DEVELOPING CONTRIES POINT OF VIEW

Fast modernization often solves problems of rich countries. But it sometimes makes more problems in poor countries. Containerization means unemployment for thousands of stevedores.

Developing countries have to spend a large part of the money they earn from exports on freight. At the same time they cannot afford to borrow the capital necessary to buy containerized ports and ships.

Guess the best meaning from the choice given:

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2)unemployment – a) hard work

b)overtime

c)no work

3) developing - a) poor

b)growing economically

c)rich

Match the words on the left with those on the right:

Group the following expressions under the following categories:

facilities

commodities

expenses

problems

Tugs, cotton, delay, crane, coffee, demurrage, congestion, wharf, copper, unemployment, dock, increasing freights, surplus ships, recessions.

Complete the sentences:

Shipowners need facilities in ports such as tugs, …

The prices of commodities such as … tend to go up and down.

Expenses such as … have to be paid.

Shipowners have to face problems such as …

Stevedores have to …

Match the statements on the left with the reasons for them on the right:

Join the sentences using because:

Containerization causes unemployment because container ports need far fewer workers to load ships.

A monopoly is one company or a group of companies, working together, controls the market. This means that the sellers can raise or lower prices so as to keep their controlling position. In such cases there is no competition of one seller against another, and the customers have no choice when they want to buy something.

This sort of situation sometimes exists in shipping services. It can either be a private monopoly system, as when only one conference serves one shipping route. Or can be a state monopoly when traders are forced to use ships of their own country.

Tick whether these statements are true or false:

1.Monopoly is the opposite of free competition.

2.Monopoly is control of the market by one organization.

3.Monopoly is the same as free competition.

4.There are two main kinds of monopoly system.

5.Competition of sellers means the customers have no choice.

Supply one suitable word for each space:

The prices of some goods go _ and down. But traders have to _ increased freight costs even when prices _. They sometimes also have to pay _ for delays. Efficient and frequent services _ usually provided but traders also complain _ poor facilities and ships not _ on time. Likewise shipping companies lose _ as a result of delays. It is very expensive to keep a large _ waiting for a berth or a _ to be repaired. Some ports are _ because not enough berths are provided _ all the ships. Shipowners have the _ of what to do with surplus _ when there is little trade. Developing _ do not always gain the advantages _ containerization. The money needed to build _ has to be borrowed, and often, _ among stevedores results. In

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general the _ countries do not gain from containerization _ much as rich countries. Low commodity _ mean that shipping costs take away _ big share of money they _ from exports.

INTERNATIONAL TRADE

International trade is not an easy option but can offer significant rewards. Once a potential exporter or importer is convinced that he has matched a product to a suitable market, a good deal of research is required to ensure that all technical, legal and procedural obstacles to profitable trading can be overcome. Most traders will find it useful to have one or more partners within a target marketplace, but partners must, of course, be selected with care. Finally, a number of risks have to be evaluated and suitable ways of avoiding or mitigating them need to be found.

The following issues focus on risk related to the market:

-assuming that the importer does pay, are the recurrently any restrictions (e.g. exchange controls) that will prevent him or his agent from remitting the required funds in the required currency?

-even if there are no restrictions now, are restrictions likely to come in overnight?

-what is the long-term prospect for the country in servicing international

debt?

-is the import of the goods into the importer’s country subject to any restrictions? Have any necessary approvals been obtained?

-if the importer or any of the intermediaries does not pay, are there any restrictions that will prevent the exporter from getting the goods back?

-is there any chance that goods will be confiscated and sold by public auction without adequate warning to the exporter?

Importers will normally want to be satisfied not just that they can buy goods at the right price, but also that supply and delivery will be reliable and that the terms of business will be feasible.

All trade involves some element of risk, but international trade introduces some additional elements and complications. Risks may be related to:

-the importer’s or exporter’s country;

-foreign exchange;

-choice of trading partners;

-terms of trade;

-payment;

-fraud;

-customs, national controls and licences.

Locating a prospective trading partner may daunt the first-time exporter, but some useful sources of information are:

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-international banks, which have large networks of overseas branches, through which they can obtain trade and credit information. Banks usually respond helpfully to exporters’ requests for such assistance;

-Chambers of Commerce, which – even if they cannot provide specific help

–may be able to point to a relevant source;

-trade consulates of foreign embassies, which are often useful avenues of information in finding importers;

-trade fairs, which offer opportunities to meet importers: informal contact is sometimes more valuable than formal enquiry;

-the Department of Trade and Industry, which has enormous resources and experience, and will invariably be helpful.

Successful international trade requires partners who are trustworthy and solvent, as well as willing, so it is absolutely essential that the trader makes all necessary enquiries about a prospective partner. The precise nature of the enquiries depends on the expected value of trade and on the relationship envisaged, but the enquiries should cover the central issues:

-the partner’s trustworthiness and reputation;

-the length of time the trader has been in business;

-whether an importer may be considered good for the amount of money involved and the terms of payment.

Give Russian equivalents to the following word combinations:

International trade, potential exporter or importer, profitable trading, target marketplace, long-term prospect, public auction, foreign exchange, first-time exporter, international banks, overseas branches, credit information, Chambers of Commerce, expected value of trade, partner’s trustworthiness and reputation, terms of payment.

Match the words on the left with the words on the right:

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INTERNATIONAL MARITIME ORGANISATIONS (IMO)

IMO is a specialized agency of the United Nations dealing with maritime affairs. Its membership consists of 155 signatory states, including the United Kingdom and every other major maritime country.

IMO’s purposes are stated in Article I of the Convention of the International Maritime Organization. The chief purposes can be summarized as:

-to facilitate the inter-governmental cooperation n state regulation and practices relating to maritime technical matters;

-to encourage and facilitate the adoption of the highest practicable standards of maritime safety, efficiency of navigation and prevention and control of marine pollution from ships.

Find in the dictionary and give the following abbreviations in full:

MARPOL, IMO, the UK, MSC, MEPC, SOLAS, the UN, UNCLOS.

GLOSSARY

Demurrage: The money paid to the shipowner if the charterer delays the sailing of the vessel ( ' , )

Despatch money: A bonus to the charterer of loading or unloading in less time than has been stipulated ( -( ' ( '

' ')

Lay days: Days allowed for the loading and discharging of a ship (

" )

Tonnage ( ). (1) Calculated as 100 cubic feet per ton to measure the ship’s capacity, as (a) gross tonnage ( ), and (b) net registered tonnage (N.R.T.) (" + ) being the ship’s cargocarrying capacity; (2) Also used to mean all the ships belonging to a country.

Translate the following letters into Russian:

(1)

Dear Sirs:

We thank you for letter dated 12th May, regarding demurrage calculations for the m/v…

We note that you agree with our “time used” statements, but not with averaging the laydays, i.e. deducting the time of despatch from the time of demurrage.

We are now reconsidering this matter and tend to agree with your point of view.

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We are now finalizing this with our New York office, and we have received a notification from our agents at Djakarta that the disbursement accounts for this vessel will soon be available, we shall finalize this matter as soon as same are at hand.

In the meantime, we ask for patience and assure you that the vessel’s accounts shall be settled to your satisfaction.

Yours very truly,

(2)

Dear Sirs,

I wish to bring to your attention the fact that the rate at which the cargo is being discharged (loaded) is very slow and my vessel is already on demurrage.

Please make necessary arrangements for a quicker discharging (loading) and inform all concerned.

Yours faithfully,

(3)

Dear Sirs,

This is to bring to your notice that lay-days for loading my vessel expired yesterday on 24 May, 2008, and from that time the ship has been on demurrage.

Please make necessary arrangements for quicker loading.

Yours faithfully,

(4)

Dear Sirs,

Further to my letter of the __ inst., I herewith inform you that lay-days for discharging the cargo under Charter Party dated the ___ May, 200_, have expired today and that my ship is now on demurrage for which you and all concerned will be held liable.

Yours faithfully,

(5)

Dear Sirs:

We refer to our letter of 26th June and to the comments of the Charterer’s Agents. They point out that according to the Charter Party, despatch is $ 150 per

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day not $ 140 per day. Consequently the amount due for the despatch is $ 1,278 and not $ 1,193.We shall be glad if you will take note accordingly and let us have a remittance in settlement.

The Chatterer’s Agents, when writing to us, reminded us that their two earlier claims for $ 3,500 and $ 6,088.09 sent to you with our letter of 27th May were still unpaid. In our letter of June 26th we reminded you the above claims and we shall glad if you will give them your prompt attention.

Yours truly,

Answer the following questions:

1.What is a demurrage?

2.What two kinds of problem for traders do you know?

3.What do shipowners complain of?

4.What is congestion?

5.What is containerization?

6.What’s unemployment?

7.What’s a monopoly?

8.What disadvantages of monopolies do you know?

9.What two kinds of monopoly do you know?

10.What’s a private monopoly?

11.What’s a state monopoly?

12. What is IMO?

BUSINESS TALKS

Act as an interpreter:

A:%, * (, - "

- - - ?

B:FESCO independently and in collaboration with other carriers operates 14 regular international and coastal container lines connecting ports of the United States, Australia, New Zealand, Southeast Asia, Japan, and China along with European and Far Eastern ports of Russia.

A: ' , - -

, ?

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B: Yes. These groups are the foreign trade line, cross – trade line, and coastal lines. It’s not fair to distinguish one group as being more significant than others as they are interconnected and strategically important for the company.

A:% " , , +

' '" – 1 ' -

" - - -

'.

B:The container shipping business is one that cannot work without its own infrastructure of an agency network. At every port of call or cargo origination and destination, agency companies are located to deal with container shipments. Container shipping is the most prospective among the company’s activities.

A: % –

. 1

' ' ( '. # 4 , '; " (

; " ( ;

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Translate the following sentences into English:

1.' '. 4

6 ' ( ' 4 - .

2.0 -"-, ' - '. &

" -" " ( ' ".

3.# , " * ' (. / + (, "

1 ?

4.. ), " 4

. # + ' ' 1 ?

' + ( ' .

5.) ) (, " 4 - .

6.)4" ', " ' '

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7.& - - # '

.

8.* ' ) , %. % "

" ' , "

"- 17 . . '

' 40 .

72

9.* , !, " '

- 110 @ 778,

' ' . ! ), "

" 2 " . . '

" ' - -(, ' -

+.

10.& " 240 .

+ ' ( ( " , "4 "

.

11.' " ( ' " ',

1 " ( '.

12.! " '

' ' .

13.% ', ' 4 1 '

" " ' ' .

14.! ' * * - .

Translate the following texts from Russian into English:

!. 7 9 /8 # 8 2

!, " ' ,

' - - ', ' .

& *

, * – , "

'.

! ' " " " "- -, "- -. " ' 24 - ",

" "- ", " - . 8 ' ' " "- "-, *

, " ' ' +. &

(" ( ' .

# , - " "4

:

-' ";

-' ';

--) ( ) ' -(

.

" ' '

"-. # " ,