HomeEducationWhat is Liner and Tramp trades in shipping..

What is Liner and Tramp trades in shipping..


  • There are two main types of shipping services – Liner and Tramp
  • A liner service works on a fixed route, period, and rotation, a Tramp doesn’t
  • Container, Bulk, Breakbulk, and RoRo all have liner services

In the course of shipping, many of you would have heard the terms Liner service or trade and Tramp service or trade..

These are two primary types of trades in the maritime space.. While both are essential to the industry’s functionality, they operate under different principles, contracts, and schedules..

Here are the differences and similarities between these two trades..

Liner Service – The Scheduled Solution

A Liner Service operates on a set schedule with fixed port rotations and published dates for calls at advertised ports.. This predictability is crucial for businesses that rely on timely and regular shipments..

A liner service usually fulfills the schedule unless in cases where a call at one of the ports has been unduly delayed due to natural or artificial causes or the carrier is forced to impose blank sailings to ensure schedule reliability..

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A typical example is the UK/NWC continent container service of MSC, which maintains a weekly schedule calling at South African ports like Durban, Cape Town, and Port Elizabeth, and carrying cargo to UK/NWC ports such as London Gateway, Antwerp, and Rotterdam..

While container liner shipping is one of the most popular liner shipping services globally with 6,979 active ships carrying 30,003,358 TEUs (yes it touched 30 million TEUs in June 2024 as per Alphaliner), liner shipping is not confined to container ships..

It also includes a significant portion of bulk, break bulk, and RoRo services..

The essence of liner services is their regular and fixed routing, which ensures that goods reach their destinations on time, providing reliability for industries that depend on steady supply chains..

Historically, Conference Lines were a significant feature of ocean liner transport.. These were formal agreements between shipping lines on various trade routes to fix freight rates and stabilize the market..

Though these conference arrangements are no longer in practice, they can be considered to be the pre-cursor for Vessel Sharing Agreements (VSAs) and Global Alliances..

These strategic partnerships allow shipping lines to pool vessels and offer joint services, maintaining the commercial independence of each line while optimizing operational efficiencies..

Tramp Service – The Flexible Friend

In contrast, a Tramp Service, or tramper is a service or trade that does not operate on a fixed schedule or route.. Tramp vessels are sometimes available at short notice to load various cargoes from any port to any port..

This flexibility makes them ideal for transporting bulk, breakbulk or project cargoes that do not adhere to regular shipping schedules..

For example, a tramp vessel might arrive in Durban from Korea to discharge cargo and then take on new cargo to Oakland on the West Coast of the USA.. From Oakland, it could transport goods to Bremerhaven, demonstrating its ability to traverse various routes based on cargo availability..

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It is important that the term “Tramp” is not misconstrued as something inferior..

That is just the name used in the industry because the ship doesn’t have a fixed home (route/port) and is free to wander (sail) around the world in search of cargo fixtures or carrying cargo..

Tramp services are often covered by a Charter Party, and the Bill of Lading used might be the BIMCO ConGenBill, depending on the cargo and the terms of the charter.. Unlike liners, tramps are not restricted to specific routes, allowing them to operate more like free agents in the maritime world..

These charters are fixed by shipbrokers who act as a bridge between ship owners and cargo owners.. Read more about the activities of a shipbroker..

Similarities in Liner and Tramp Services

Despite their operational differences, however, liner and tramp services share several similarities.. Both types of vessels are seaworthy and capable of carrying different types of cargo, depending on the trade route..

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They are classed by reputable classification societies and may use an open registry or Flags of Convenience (FOC).. Additionally, both types of vessels are covered by reputable Protection & Indemnity (P&I) clubs and operated by crews with the necessary expertise to handle operations and voyages..

Both liner and tramp vessels are subject to the same immigration, customs, health, and port regulations.. However, liners might benefit from a berthing window scheme at certain ports, allowing them to berth at a nominated time, ensuring adherence to their fixed schedules..

Key Differences Between Liner and Tramp Services

The primary difference between liner and tramp services lies in their schedules and routes.. Liners operate on fixed schedules with regular port rotations, while tramps do not have a fixed itinerary and can change routes based on cargo availability.. This difference influences the type of contract of carriage and the Bill of Lading used..

In liner services, shipping lines typically use their own pre-printed Bill of Lading or a standard form like the BIMCO ConLineBill..

In tramp services, the carriers could use different types of bills of lading depending on the type of cargo carried.. BIMCO bills of lading are by far the most popular used in these trades

Examples (Source – BIMCO) :

  1. The GRAINCONBILL is a charter party bill of lading for shipments of grain under the GRAINCON charter party.

  2. The North American Grain Bill of Lading, NORGRAINBILL, was developed to be used for shipments of grain under the NORGRAIN charter party.

  3. The COAL-OREVOYBILL is a charter party bill of lading for shipments of coal and ore cargoes under the COAL-OREVOY charter party.

  4. The CONGENBILL is a charter party bill of lading for shipments of general cargo under the GENCON charter party.

Conclusion

Understanding the distinctions and commonalities between liner and tramp services is crucial for anyone involved in maritime logistics..

Liner services offer reliability and regularity, essential for maintaining steady supply chains.. In contrast, tramp services provide flexibility, crucial for transporting bulk or breakbulk cargoes without fixed schedules..

Both services play vital roles in global trade, ensuring that goods are transported efficiently across the world’s oceans..

By comprehending these services’ operational principles, businesses can better plan their logistics strategies, leveraging the strengths of each service to meet their unique needs..

Whether you prefer the predictability of liner services or the flexibility of tramp services, both are indispensable components of the maritime industry, facilitating the seamless flow of global commerce..


This article has been republished after some critical updates..


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About the Author

Hariesh Manaadiar
Hariesh Manaadiarhttps://www.shippingandfreightresource.com
I am Hariesh Manaadiar, Founder of Shipping and Freight Resource.. I have been working in the global transport and trade ecosystem since 1989 across shipping, freight, logistics, supply chain and trade.. I share insights and knowledge across the industry from bills of lading and trade documentation to ports, maritime regulation, freight markets, and the digitalisation of global trade.. My work sits under Making Global Trade FIT™, built on a simple philosophy.. Every trade challenge can be fixed, explained or taught.. HM Business Solutions FIXES trade challenges, Shipping and Freight Resource INFORMS the industry, and Shipping and Freight Academy TRAINS for capability.. Since 2008, this resource has helped businesses make sense of complexity in global trade, and has been read by over 11.4 million visitors from 230 countries.. I have also delivered training and developed guides for organisations including UNICEF, Texas State University, the University of Plymouth, and AMTOI India.. Stay subscribed for free and useful content from across the industry..

60 COMMENTS

  1. Here you can find the main difference between a Liner Service and a Tramp one.

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    Liner trade

    SCHEDULE: It is a service that operates within a schedule and has a fixed port rotation with published dates of calls at the advertised ports. It does this with regularity and frequency that conforms to an advertised schedule.

    COMMON CARRIER: This means that any shipper may have their cargo carried so long as they are prepared to pay the rate quoted and abide by the liner operator’s terms and conditions. In the USA and elsewhere, the expression ‘common carrier’ has a strict legal definition.

    TYPE OF CARGO: A liner always carries manufactured goods, very often in small consignments.

    SHIPPERS: A liner carries the goods of several, often numerous, shippers; it is for this reason that goods carried by liners are referred to as general cargo. Because a line carries many consignments the contract of carriage is not subject to individual negotiation and the shipper has to accept the line’s standard conditions of carriage.

    DOCUMENT: The bill of lading. It is vital to fix in one’s mind that a b/l has three functions. Receipt of cargo, Evidence of contract, and Document of title (RED). For instance the BIMCO ConLineBill.

    Tramp trade

    SCHEDULE: This is in contrast to tramp, which follows no schedule and may trade among a wide variety of ports according to the market at the time. The sectors within the shipping business are referred to as markets. This is because at some stage there is a short of negotiation between two parties that is characteristic of a market.. The bulk trades especially are driven by the laws of supply and demand internationally. Economists refer to the chartering markets as perfect competition.

    PRIVATE CARRIER: This means that the cargo is individually negotiated and an agreement signed.

    TYPE OF CARGO: A tramp usually carries raw materials, very often in bulk. The dry cargo chartering markets are composed of specialties such as grain, coal, and iron ore.

    SHIPPERS: A tramp generally carries the goods for one shipper.

    DOCUMENT: The charter party. There are two basic ways a ship can be chartered: Voyage charter (by this means the merchant charters the ship to carry an agreed quantity of cargo from A to B) and Time charter (by this means that the charterer hires the vessel for a period of time instead of paying a rate of freight per tonne, the charterer pays a hire rate per day). For instance BIMCO ConGenBill

  2. Dear frnds, i studied maritime mgt expecting nysc soon, can anyone guide me on wot to do to b posted to maritime industry to serve, instead of classroom. Tnx

    • NO the charter parties take part only in the hiring of ships for the cargo transportation services while the tramp services is the shipping of either try or liquid bulk cargo from one nearby port to the other for other ships to fully transport them to their main destinations

  3. just ask about dry bulk vessel in the world , most of them are tramp vessel ?
    focusing on China, they import Hugh iron ore and export other things to world , are there tramp ?
    which one is driven the world seaborne trande between Tramp and liner ?

    • Liners have more than 80% of the seaborne trade, on volume basis and tramps are relatively minor players

  4. Hello Guys

    I wish to know more about the main difference between the type of cargo carried by a liner and a tramp.

    • As a thumb rule, the loose bulk cargo is carried by the tramps whereas containerised and packaged cargo is carried by the liners. However, the business lines are not watertight compartments and there are exceptions.

  5. Dear Guys,
    Recently in my class our lecturer asked one question what is different between Tramp & Liner i have find so many links but i couldn’t find easy answer but through this notes i have taken the notes point wise one by one it’s very easy pick our knowledge this is the way to learn thanks for your corporation and understanding in this regard.
    Thanks,
    Roshan.

  6. I never known much about this information until I found this post. Thanks for sharing this very useful information. I am glad I cam accross your site.

  7. Liners carry goods in large quanties from merchants and consigners. Tramps ships, on the other hand, often carry cargo on a more random, per-load basis. The primary advantage of ships is their ability to carry tons of merchandise and equipment. They transport many of the world’s finite resources, including oil and coal.

  8. Liner Shipping means a specific mode of ocean transportation services where a shipping company operates their fleet of vessel for carriage of goods between fixed ports,at regular intervals under publicly advertised schedule. Chartering on the other hand refers to a kind of shipping business, where the entire ship is hired by a shipper or charterer either for a particular voyage or for a period of time say six months or one year, to fulfill his business commitment under some mutually agreed terms and conditions which is known as “Charter Party” in shipping trade. Thanks

    • Oscar, it not always easy to identify the issuer of a bill of lading based on bill of lading number.. There are some big lines like MSC, Hapag Lloyd etc that issue bills with a bill of lading prefix like MSCU, HLCU etc which helps to identify the shipping line..

      But not all lines do this.. Especially if the bill of lading is issued by an NVOCC, not many people know those prefixes..

      This prefix you have provided is new to me and the only way you can tracking your cargo is by going to the website of the shipping line/nvocc or forwarder that issued the bill of lading, providing of course the site offers a tracking facility..

  9. I think occean liners carry more goods than tramp liners because there is always a particular time schedule for occean liner to carry goods…Thanks

    • Hi Clarence, even though it is called tramp services, they provide the same first class shipping service that most liner services provide albeit at different intervals depending on the contract.. For this reason, tramps can be a competition to the liner service.. However, the advantage that the liner has is the frequency of sailings and the regular ports of call..

    • Hi Lazar, tramps are not designed to carry dry bulk, rather dry bulk moves a lot on tramp vsls.. It is because unless there is a COA, in most cases dry bulk does not have the regularity and pattern of other cargoes.. Tramp is just the name given to the service because of its nature to go anywhere in the world.. However if those same ships get a fixed cargo pattern they will follow that and could become a liner service..

  10. liner takes assorted type of cargo(heterogeneous) but tramp takes one type of cargo(homogeneous).the contract for liner is the bill of lading whiles for tramp,is the charter party.

  11. the introduction of rules of hague brought a certainty of contract to shippers and carriers introduicing a universally accepted convention for the first time to international trade.
    Hague visby was a revision of hague rules,principallya ffecting limitation of liability.

  12. Why were hague and hague visby rules introduced? Why have countries incoporated the hamburg rules in thier own maritime law?

  13. the purpose of tramp ship is provide a convenient and economical means to transport goods that require cross ocean movement. one of the key characteristic of tramp shipping is to seek cargoes all over the world and provide flexibility in sea transport to satisfy the needs of world trade. the tramp ship can be only vessel that does not have a fixed itinerary and mainly carries dry cargoes in bulk from one port to one or more different ports. tramp ship go from place to place depending upon where they can find cargoes. tramp shipping mainly carries only one comodity at a time and usually carries cargo from one shipper. tramp ships carry dry bulk cargoes that are used by many industries. a main function of liner shipping is to to satisfy the demand for regular transport under which cargoes are transported through regular routes and with regular schedules. liner ship is mainly made up of manufactured or partly manufactured goods. the majority of liner ship is carried in containers. liner ship is more expensive vessels than tramp ship because their building and operating costs are usually higher.

  14. Hi Kunayusof

    The main thing about a Tramp service is the fact that they operate on a very flexible schedule in search of cargo worldwide. They carry primary bulk cargo’s and are known to wait till they have a full vessel before sailing on again. Tramp companies are a lot smaller than the Liner companies and their business demands an intimate knowledge of market conditions.

    Liner companies rely on the fact that they offer very reliable day named service to clients, however there are down sides to this in that if the schedule is not maintained then the clients will not support the line again.

    • Tramp are for Bulk and BB and mostly for raw materials while Liner are for containerized commodities and manufactured goods in addition to RORO Svc

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