Chartering Terms Definition

ACCEPTANCE Any agreement to purchase goods under specified terms. An agreement to purchase goods at a state price and under stated terms.
ACT OF GOD It is a natural event, not preventable by any human agency, such as flood, storms, or lightning. Forces of nature that a carrier has no control over, and therefore cannot be held accountable.
ADDENDUM Whenever the terms in a fully signed C/P are amended by subsequent negotions an addendum is prepared by the charterer’s broker (and forms a part of the C/P). It comes into effect only when it is signed by all parties just like the original C/P.
ADDRESS COMMISSION Commission payable to the charterer by the shipowner as a percentage of freight or hire. Historically it was paid to the charterer to cover up some of the expenses incurred by him.  At present it virtually works out to a reduction in the freight.
ADVANCE FREIGHT Partial payment of the bill of lading freight in advance; in other respects is the same as guaranteed freight. In other words, freight payable before goods are accepted for shipment. Once paid it can not be recovered from the shipowner upon frustration on voyage and loss of goods.
AFRAMAX Tanker of maximum 79,999 dwt on the AFRA freight rate assessment scale.
AFFREIGHTMENT The hiring of a ship in whole or part
AIR DRAFT This term has various meanings the most common being: The maximum height from the water line to the top-most point of a ship.
AIR WAYBILL A bill of lading that covers both domestic and international flights transporting goods to a specified destination. This is a non-negotiable instrument of air transport that serves as a receipt for the shipper, indicating that the carrier has accepted the goods listed and obligates itself to carry the consignment to the airport of destination according to specified conditions.
ALL RISK The broadest form of coverage available, providing protection against all risks of physical loss or damage from any external cause. Does not cover loss or damage due to delay, inherent vice, preshipment condition, inadequate packaging, or loss of market.
ALL TIME SAVED Means that the time saved to a ship from the completion of loading/discharging to the expiry of laytime including periods excepted from laytime.
ALL WORKING TIME SAVED or ALL LAYTIME SAVED Both these terms mean the same. Here the description of the time means that time saved to the owner from the completion of the loading and/or discharging until the expiry of the allowed laytime excluding and notice time and periods which are exceptions to laytime.
ALONGSIDE A phrase referring to the side of a ship.
ALTERNATE HOLDS Iron ore being a very heavy cargo is loaded in alternate holds, leaving remaining holds empty.
ALWAYS AFLOAT or ALWAYS SAFELY AFLOAT This clause is inserted in a C/P to prevent a vessel from being ordered to proceed to a berth where she touches the ground during loading of discharging or which can only be reached after lighterage of part of her cargo or which can only be reached during high tide.
APPROVED CHARTERPARTY A charterparty which has been agreed upon, adopted or recommended by BIMCO, G.C.B.S., etc.
ARBITRAGE The buying of foreign exchange, securities, or commodities in one market and the simultaneous selling in another market, in terms of a third market. By this manipulation a profit is made because of the difference in the rates of exchange or in the prices of securities or commodities involved.
ARRIVAL PILOT STATION A point of identification at which a time-chartered vessel is delivered to the charterer (or re-delivered to the shipowner). In this case the hire commences (or ends) as soon as the vessel reaches the pilot station. (This term favours the shipowner vis-à-vis “taking inward pilot” which favours the charterer).
ARRIVED SHIP A vessel is an arrived ship and the laytime allowed under the C/P begins to count as soon as the following conditions have been complied with: 1) The vessel must have arrived at the port, berth or dock as stated in the C/P. 2) The vessel must be ready to load or discharge in every way. 3) A notice of readiness must have been given in writing to the charterers or shippers/consignees.
AS FAST AS THE VESSEL CAN RECEIVE/DELIVER Means that the laytime is calculated by reference to the maximum rat at which the ship in full working order is capable of loading or discharging the cargo, that is, as fast as she can or with customary (quick) dispatch. The term appears in a C/P when laytime is not fixed (indefinite) and is left to the custom of the port.
AUSTALIAN HOLD LADDERS All vessels trading with Australia must be provided with ladders acceptable to waterside workers’ federation/ unions in that country. These ladders are so constructed as to prevent fatigue due to platforms at regular intervals. Vessels without such type of ladders can be penalized or delayed.
AVERAGE Any loss or damage due to insured perils that is less than a total loss. Two types of average occur: Particular Average and General Average.
AVERAGING LAYTIME To average means to make separate calculations for lading and discharging and any time saved in one operation can be set off against any excess time used in the other. The option to average laytime is given to the charterer.
BACK FREIGHT freight charged for the return of goods which have not been accepted at the port of destination. Also applied to goods discharged at another convenient port.
BALE CAPACITY The cubic capacity of a ship’s holds below deck, expressed in cubic feet or cubic metres, available for the carriage of breakbulk type of cargoes, e.g.., packages, bales, cartons, cartons, drums, pallets, etc., which are not capable of filling the space between the ship’s frames.
BALLAST Heavy weight, often sea water, necessary for the stability and safety of a ship which is not carrying cargo.
BALLAST BONUS Sum of money paid by a time charterer to a shipowner (in a good market) to compensate him for not finding a cargo near the place of re-delivery of the ship at the end of the charter. The bonus serves as an incentive for the ballast (empty) trip to cover up the cost of fuel and time. At times a shipowner pay pat the charterer a ballast bonus when the vessel is being re-delivered at the end of time charter, specially when market is not good for the shipowner.
BAR DRAFT This relates to the maximum draft enabling a vessel to pass over a bar, e.g., Martin Garcia bar in the River Plate. In case the vessel has too great a draft, it will have to discharge part of the cargo into barges and then reload it after passing the bar. A similar situation exists at Yangon (formerly Rangoon). Such ports are called bar-ports.
BAREBOAT /DEMISE CHARTER Lease of a ship wherein the charterer takes over the ship together with the rigid of management and control. In fact the becomes the virtual owner of the vessel during the term of the charter. Charter has the right to engage and pay the master and crew who are his employees. The shipowner merely receives compensation as hire payments.
BEAUFORT SCALE A scale of wind force expressed from 0 to 12 in which weather conditions represent with conditions expressed in numerals, where 0 means calm wind (less that I knot speed) and 12 refers to hurricane (speed between 64 to 71 knots). This term is used mostly in time charterparties, as vessels are not penalised for non-performance of speed in case wind speed is more than the agreed Beaufort number.
BEFORE BREAKING BULK Refers to the time when freight is paid. In this case freight is to be paid any time before commencement of discharge.
BELOW BRIDGES If a ship has to pass under a bridge across a canal to reach the port or berth it has to ensure that its draft permits the vessel to have sufficient clearance above its highest point to pass under the bridge with ease.
BENEFICIARY The person in whose favor a draft is issued or a letter of credit opened.
BERTH The specific place where ships are anchored for loading and/or discharging at the docks in a port.
BERTH CHARTER If a vessel chartered for loading on a particular berth, the contract is called berth charter. The term berth charter implies that notice of readiness cannot be given until the vessel is in the designated berth as required by the charterers.
BERTH TERMS Also referred to as “liner terms”. The Shipowner pays for loading and discharging subject to the custom of the port or as fast as the ship can handle the cargo or under customary dispatch.
BILL OF LADING The document issued on behalf of the carrier describing the kind and quantity of goods being shipped, the shipper, the consignee, the ports of loading and discharge and the carrying vessel. It serves as a document of title, a contract of carriage, and a receipt for goods.
BLACK LIST List of countries published by a government which will not allow ships to trade at its ports if they have traded at ports in the countries on that list.
BONDED WAREHOUSE A building authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
BOTH ENDS The term means that the arrangements agreed upon hold true both at loading and discharging ports, e.g., rate of loading and discharging; appointment of agents, etc.
BRACKISH WATER ARRIVAL DRAFT Brackish is spoken of water in a river when partly salt and partly fresh. It has a density between that of fresh water (1000 kgs/cubic metre) and that of salt water (1025 kgs/cubic metre). When a ship proceeds to a brackish water port, the ship’s draft will be more than the draft in salt water and less than the draft in fresh water.
BREAK BULK Loose cargo, such as cartons, stowed directly in the ship’s hold as opposed to containerized or bulk cargo. See “Containerization.”
BREAKBULK Describes loose cargo, such as cartons, bales, boxes, packages, etc stowed directly in the ship’s hold as opposed to containerised or bulk cargo.
BREAKING BULK The expression means “to start the discharge.”
BROKEN STOWAGE The space wasted in a ship’s holds when stowing general cargo which is uneven and packed.
BROKER (SHIP) A shipbroker acts as a middleman between the shipowner and the charterer and negotiates the terms of a C/P. He represents one party (say, shipowner) and negotiates with the other party (charterer) directly or with another broker who represents the charterer. (A sale and purchase broker negotiates for the sale of a ship and represents the shipowner).
BROKERAGE Brokerage is a commission paid to the shipbroker by the shipowner for the broker’s time, effort and expenses in concluding a (successful) fixture, normally a certain percentage of the hire of freight earned by the shipowner.
BULK SHIPMENTS Shipments which are not packaged, but are loaded directly into the vessel’s holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap, iron, grain, rice, vegetable oil, tallow, fuel oil, fertilizers, and similar commodities.
BUNDLING This is the assembly of pieces of cargo, secured into one manageable unit. This is relevant to items such as Structural Steel, Handrails, Stairways etc. Whilst this is a very flexible description, a rule of thumb is to present cargo at a size easily handled by a large (20 tonne) fork lift truck.
BUNKER ADJUSTMENT FACTOR A Fuel Surcharge expressed as a percentage added or subtracted from the freight amount, reflecting the movement in the market place price for bunkers.
BUNKERS Name given for vessels Fuel and Diesel Oil supplies (Originates from coal bunkers)
COST & FREIGHT (Cost and Freight) Seller owns goods until they are loaded on vessel; selling price includes all costs so far plus cost of freight. The buyer is responsible for insurance.
COST, INSURANCE AND FREIGHT Seller owns goods until they are loaded on vessel; selling price includes cost of goods, insurance, and freight.
CALCULABLE LAYTIME By doing certain tonnage and hatch calculations one can work out the exact laytime available for cargo operations.
CALENDAR MONTH A month according to a calendar, e.g., if a vessel is taken up on time charter for say 6 months and has been delivered on 10th June, the charter will expire on 10th December.
CANCELLING DATE The date, mutually agreed upon between the shipowner and the charterer, on which the vessel must be ready to lad at the latest is called the canceling date. Should the vessel miss her canceling date, the charterers are entitled to cancel the C/P
CAPESIZE Vessels too large for the Panama and/or the Suez Canal are termed Capesize.
CARGO Goods, merchandise or commodities of every description which may be carried aboard a vessel, in consideration of the freight charged; does not include provisions and stores for use on board.
CARNET A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds.
CARRIAGE OF GOODS BY SEA ACT (C.O.G.S.A.) 1936 U.S. Statute that governs the acts that a carrier is responsible for and defines the terms used in shipping. The act provides that the shipowner’s liability will be limited to $500 per shipping package, and it stipulates a one-year time limit for filing suit against the carrier. This act automatically applies to international ocean movements but not to domestic ocean transits unless the carrier agrees to be bound by it.
CARRIER Usually means Steamship Company, but can also refer to trucking company, airline, or railroad as transporter of cargo.
CENTISTOKES Describes viscosity of fuel oils—380 c/s or 180 c/s (better). The greater the number of centistokes, the higher the viscosity of the oil and cheaper the cost. (Viscosity is the ability of liquid to resist flow, e.g., honey is more viscous than lemon juice).
CERTIFICATE OF INSPECTION A document often required with shipments of perishable or other goods, when certification notes the good condition of the merchandise immediately prior to shipment.
CERTIFICATE OF MANUFACTURE A statement sometimes notarized by a producer, usually also the seller, or merchandiser that indicates the goods have been manufactured and are at the disposal of the buyer.
CERTIFICATE OF ORIGIN A specified document, required by certain foreign countries for tariff purposes, certifying the country of origin of the merchandise. Sometimes requires the signature of the consul of the country to which it is destined.
CHART DATUM Water level calculated on the lowest tide that can ever occur and used as a basis for chart measurements.
CHARTER PARTY A written contract between the owner of a vessel and the one (the charterer) desiring to empty the vessel, setting forth the terms of the arrangement, i.e., freight rate and ports involved in the contemplated trip.
CHARTERING AGENTS They are specially appointed by large importers or exporters to book space or vessels for their shipments. All enquiries for tonnage are placed in the hands of these chartering agents to the exclusion of any other broker. The chartering agents act as intermediaries for their principals.
CLEAN BALLAST TANKS Water carried in a tanker or tanks which have no traces of oil. Hence such water is referred to as clean ballast. Tanks carrying the water are therefore clean ballast tanks.
CLEAR DAY/S Means that the day on which the notice is given and the day on which the notice expires are not included in the notice period.
COLLECT FREIGHT Freight payable at destination provided the vessel delivers the goods as specified.
COMBI A ship specifically designed to carry both containers and conventional cargoes.
COMBIDOC Combined transport document issued by the Baltic and International Maritime Conference (BIMCO)
COMMENCEMNT OF LAYTIME Laytime is said to commence once a vessel has arrived at a port, complied with all stipulations and tendered the notice of readiness as specified in the C/P
COMMERCIAL INVOICE A statement of transaction between a seller and buyer prepared by the seller, and a description of the merchandise, price, terms, etc.
COMMERCIAL SET Set of four “negotiable” documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction.
COMMISSION PAST US Implies that the quote does not include the normal commission for the brokers quoting the order.
COMMON CARRIER Transporter who holds himself out to the general public for the transportation of goods over a definite route and according to a regular schedule.
CONGESTION In order to avoid loss to owners due to non-availability of the berth or waiting at the anchorage, C/Ps specify that the notice of readiness can be tendered by the master “whether in berth or not (wibon), whether in free pratique or not (wifpon), and whether customs cleared or not (wccon)
CONSECUTIVE VOYAGES A named vessel may be employed on a series of voyages called consecutive voyages against a single C/P. The vessel proceeds loaded from loading to discharging port only to return in ballast and repeat the following voyage on same terms and conditions until all the cargo has been shipped. However, separate calculations of freight and laytime are made for the individual voyages. It differs from a COA where the shipowner can use any ship and the freight rates take into account the cost of ballast return voyage from discharge to load port.
CONSIGNEE Party who is to receive the good; usually the buyer.
CONSIGNMENT Merchandise shipped to a foreign agent or customer when an actual purchase has not been made, but under an agreement obliging the consignee to pay the consignor for the goods when sold.
CONSOLIDATION The Consolidation Endorsement may be added to an Open Cargo Policy at an agreed premium, to provide coverage on merchandise while in transit to, and while at, a common consolidation point for the purpose of preparing or consolidating the merchandise for export.
CONSULAR DOCUMENTS Bills of lading, certificates of origin or special invoice forms that are officially signed by the consul of the country of destination.
CONSULAR INVOICE A detailed statement of goods shipped certified by the consul at the point of shipment.
CONTAINERIZATION Shipping systems based on large cargo-carrying containers ranging up to 48 feet long that can be easily interchanged between trucks, trains and ships without rehandling the contents.
CONTRABAND During the time of war, materials carried aboard a vessel that could aid a belligerent in the process of the war, such as arms, weapons or munitions.
CONTRACT OF AFFREIGTMENT In chartering this terms refers to a shipowner (or charterer) who enters into a contract to carry a large quantity of cargo between named port or regions on mutually agreed terms and conditions over a period of time. The shipowner may employ his own vessels or charter other vessels to meet his commitments. This ships used for the carriage are not named. As each shipment takes place a fresh voyage charter is entered into between the parties. This gives the shipowner sufficient flexibility.
CROSS TRADE To trade a ship wherever suitable cargoes are available, rather then carrying cargoes to and from the country where the ship is registered.
CURRENT ADJUSTMENT FACTOR This takes account of the rate of exchange variations. Owners are required to pay costs in local currency in the country of loading and discharging. It is a percentage of the base rate.
CUSTOMARY DESPATH or CUSTOMARY QUICK DESPATCH The charter is required to discharge and/or load as quickly as possible (as fast as can) depending on the custom of the port. There is no fixed time allowed to the charterer. Hence the term is not favourable to the shipowner as the laytime is indefinite and uncertain.
CUSTOME OF THE PORT This term relates to customs and practices which have been gradually established in the course of time in a particular port. If a C/P provides loading and discharging according to the custom of the port (or with customary dispatch or as fast as can) the laytime becomes indefinite, a situation unfavourable to shipowners as they will find it difficult to put a claim for demurrage or damages for detention.
CUSTOMS BROKER Licensed by U.S. Customs to clear shipments for clients, also can forward goods “In Bond” to your port.
D/A-DOCUMENTS AGAINST ACCEPTANCE Instructions from a shipper to his bank that the documents attached to a time draft for collection are deliverable to the drawee against his acceptance of the draft.
D/P-DOCUMENTS AGAINST PAYMENT Instructions a shipper gives to his bank that the documents attached to a draft for collection are deliverable to the drawee only against his payment of the draft.
DAILY RUNNING COST Cost per day of operating a ship.
DAMAGES FOR DETENTION Penalty if cargo is not ready when ship arrives for working (1st day of Laycan). This is not detention which is charged for ships time on delay. If  the cargo is ready there is no DAMFORDET.
DATE ON CHARTER PARTY The actual date on which the fixture negotiations are finally concluded, after all subjects have been lifted.
DAY Means a continuous period of 24 hours which, unless the context otherwise requires, runs from midnight to midnight.
DAYS ALL PURPOSES total time for both loading and discharging. (See reversible laytime).
DEAD FREIGHT Where a charterer or shipper fails to fulfil his contract to load the cargo or the full cargo, he commits a breach of the contract for which he is liable to pay damages. These damages are known as dead freight. In other words, payment for space booked on a vessel but not used.
DEADWEIGHT CARGO CAPACITY Weight of the cargo only which a ship can carry when immersed to her summer loadline. It is the deadweight all told less weight of bunkers, fresh water, constants, etc.
DEADWEIGHT TONNAGE Signifies the carrying capacity of a vessel and includes bunkers, fresh water, cargo and/or passengers and constants. The difference between the displacement of a vessel on her light draft and her loaded draft represents the deadweight capacity in tons (or tones). Also called deadweight all told.
DECK CARGO Cargo carried outside rather than within the enclosed cargo spaces of a vessel.
DECK LINE 12″ (or 300mm) line painted amidships on both sides and parallel to the loadlines. The line is located at the point where the upper most continuous deck, known as the freeboard deck, meets the side of the ship.
DEFINITE LAYTIME One of the three forms of laytime (the other two being “calculable” and “indefinite”). The charterparty specifies the days/hours allowed for loading and/or discharging.
DELAY Even under All Risk coverage, damage due to delay is not recoverable. Most underwriters have inserted a “Delay Cause” in the Open Cargo Policy, which states specifically that damage caused by delay is not recoverable even if the delay was due to a peril insured against.
DELIVERY & RE-DELIVERY A time charter commences with the delivery of the vessel to the charterer and comes to an end with the re-delivery of the vessel to the owner. The delivery or re-delivery can occur at a port or a place agreed upon, e.g., passing Skaw (northern tip of Denmark, at the entrance of the Baltic Sea); passing Cape Passero (south-east coast of Italy); passing Key West (Florida), or any other position.
DEMURRAGE Money (compensation) payable to the shipowner by a charterer for delay for which the owner is not responsible in loading and/or discharging after the laytime stipulated in the C/P has expired.
DESPATCH / DESPATCH MONEY The money (bonus) payable by the shipowner to the charterer if the vessel completes loading or discharging before the expiry of laytime stipulated in the C/P. usually half the demurrage rate.
DETENTION & DEMAGES FOR DETENTION If demurrage has not been agreed in the charterparty, the shipowner can claim compensation as damages for detention. A case where a shipowner can claim damages for detention is when a vessel is chartered to load at a berth where the vessel must be always afloat. However the charterer directs the vessel to a berth where the vessel is not always afloat. Since it has been agreed in the C/P that NOR can be tendered and laytime to commence whether the vessel is in berth or not (wibon), the master refuses to comply with the berthing orders. The shipowner in this case may not be able to put a claim for demurrage. However, he may be entitled to “damages for detention”.
DEVIATION CLAUSE Deviation is an intentional departure from the set or agreed course of the voyage. The ship is not permitted to leave this route for any purpose without justification. To protect themselves the shipowners enter a clause in the charterparty called the “deviation clause” which allows them to deviate to save or attempt to save life and/or property at sea and to give the owners the right to deviate for bunkering purpose (by inserting another clause called the “P & I Bunkering Clause”).
DISBURSEMENTS Sums paid out by the ship’s agent on behalf of a shipowner and recovered subsequently.
DISPLACEMENT LIGHT Weight of the vessel without bunkers, fresh water, cargo and/or passengers and constants.
DISPLACEMENT LOADED Weight of the vessel plus bunkers, fresh water, cargo and/or passengers and constants.
DISPONENT OWNER A charterer who has control of the vessel (e.g. under a bareboat or time charter) is referred to as a “disponent owner”. During the duration of the charter, he acts as if he were the real owner.
DISTANCE FREIGHT The expression is used in connection with discharge of cargo at a port other than the original port of destination. For instance, if the vessel runs the risk of being frozen in, the master may deem it advisable to deliver the cargo at the nearest safe port. If the extra distance is worthwhile he can claim distance freight.
DISTRESS FREIGHT When a chartered vessel is being loaded at the berth and charterers find it difficult to secure completion of cargo at normal rates, they may book cargo at very low rates (called distress rates) in order to fill up the remaining space rather than allow the vessel to be dispatched with empty space.
DOCK RECEIPT Receipt issued by an ocean carrier or its agent for merchandise delivered at its dock or warehouse awaiting shipment.
DOCUMENTARY CREDIT A commercial letter of credit providing for payment by a bank to the name beneficiary, usually the seller of merchandise, against delivery of documents specified in the credit.
DOCUMENTS Papers customarily attached to foreign drafts, consisting of ocean bills of lading, marine insurance certificates, and commercial invoices, and where required, including certificates of origin and consular invoices.
DOWN TO HER MARKS When a vessel is immersed to the appropriate loadline and therefore cannot load any further cargo.
DRAFT Buyer’s payment for goods.
DRAFT OR DRAUGHT Depth to which a ship is immersed in water. The depth varies according to the design of the ship and will be greater or lesser depending not only on the weight of the ship and everything on board, but also on the density of  the water in which the ship is lying.
DRAFT SURVEY Survey undertaken to determine the quantities of cargo on board a ship.
DROPPING LAST OUTWARD SEA PILOT Some ports require the service of more than one pilot to be used, one from the berth to the beginning of the channel and another called the sea-pilot for navigation within the channel to the river and canal outside the port limits. In this case the off-hire (or on-hire) survey will be carried out only when the sea-pilot (who navigates the vessel outside the port limits) disembarks from the ship.
DROPPING OUTWARD PILOT A point of delivery on to and re-delivery off a time charter. The point where an “on-hire” or “off-hire” survey takes place is that place where the pilot who assists the ship in navigation to the pilot station disembarks from the ship. A point in owner’s favour as expenses into and out of a port (e.g., hire of a tug) will be for charterer’s account.
DUNNAGE Materials of various types, often timber or matting, placed among the cargo for separation, and hence protection from damage, for ventilation and, in the case of certain cargoes, to provide space in which the tynes of a fork lift truck may be inserted.
DUTY (a) ad valorem duty means an assessed amount at a certain percentage rate on the monetary value of an import. (b) Specific duty: an assessment on the weight or quantity of an article without preference to its monetary value or market price. (c) Drawback: a recovery in whole or in part of duty paid on imported merchandise at the time of exportation, in the same or different form.
ECONOMIC SPEED Speed of a ship which is lower than its normal speed. It provides a reduction in fuel cost as less fuel is consumed.
EVEN IF USED Time spent in carrying out loading and/or discharging in excepted periods (e.g., Shex =Sundays and holidays excepted) is not to count as laytime, even if used. This qualification of laytime is favourable to the charterer. “Unless used” has the opposite effect and favours the shipowner.
EX (POINT OF ORIGIN) From the point where the shipment begins movement, e.g., “Ex Factory” “Ex Mine” or “Ex Warehouse.” See “Terms of Sale.”
EXCEPTED Refers to laytime. Means that the specified days do not count as laytime even if loading or discharging is done on them, e.g., Sundays and holidays excepted. Note that if laytime has expired then the exceptions do not apply.
EXCEPTION CLAUSES Clauses in a C/P or B/L which relieve the carriers of responsibility of certain perils, accidents or neglect. (See Hague Rules and COGSA).
EXCEPTIONS TO LAYTIME The happening of events agreed upon in the C/P which interrupt counting of laytime. These give protection to the charterer. For e.g., a clause dealing with stoppage of work due to strike would be a protective clause.
EX-DOCK (From dock.) Seller owns goods until they are unloaded on dock at port of discharge; selling price includes all costs so far plus cost of unloading from vessel.
EX-FACTORY Seller owns goods until they are picked up at his factory; selling price is the cost of the goods.
EXPRESS CLAUSE In case what has actually been agreed is not very clear, then an express clause is inserted in addition to the printed form drawing attention to the terms specifically agreed upon.
FREE ALONGSIDE STEAMER Seller owns goods until they are delivered alongside vessel; selling price includes all costs so far plus cost of transportation to dock.
FREE OF CAPTURE & SEIZURE Free of Capture & Seizure – Clause excluding war risks from the Marine Policy; war risks can be covered by issuing a separate War Policy with an additional premium being charged.
FREE ON BOARD TRUCK Seller owns goods until they are loaded on truck at his factory; selling price includes all costs so far plus cost of loading on truck.
FREE ON BOARD VESSEL Seller owns goods until they are loaded on vessel; selling price includes all costs so far plus cost of loading on vessel.
FREE ON BOARD WAREHOUSE (Free on board warehouse.) Seller owns goods until they are delivered to buyer’s warehouse at final destination; selling price includes all costs so far plus transportation to final warehouse.
F.O.B./F.A.S. ENDORSEMENT If a merchant sells on F.O.B., F.A.S., C&F or similar terms, it is the buyer’s responsibility to place the insurance.
FAST AS CAN The term appears in a C/P when laytime is not fixed. It means that the laytime is calculated by reference to the maximum rate at which the ship in full working order is capable of loading or discharging the cargo as fast as she can. At times this term is combined with the custom of the port or customary quick dispatch.
FIRM OFFER Used by the owner’s shipbroker in negotiations to indicate that the vessel is being offered to only one possible charterer at a time. Conversely, the term could also be used by the charterer’s shipbroker inviting owner’s shipbroker to submit a firm offer for a particular order. It is a normal practice to include certain main terms in a firm offer.
FIRST CLASS CHARTERER When the name of the charterer is not revealed by his broker the charterer is referred to as a first class charterer. However, it is risky to negotiate with such a charterer as his record of payments cannot be cross-checked with BIMCO.
FIRST OPEN WATER The first date when a port is free from ice conditions to allow ships to enter, load/discharge and leave safely, at the start of a new season. The term is commonly used in the St Lawrence Seaway.
FIXTURE Conclusion of a shipbroker’s negotiations to charter (fix) a ship.
FIXING Chartering a Vessel
FLATPACKING Cargo to be presented stacked and secured as an integral unit.
FORCE MAJEURE The title of a standard clause in marine contracts exempting the parties for non-fulfillment of their obligations as a result of conditions beyond their control, such as earthquakes, floods, or war.
FORCE MAJEURE Circumstances beyond the control of one of the parties to a contract. E.g., Act of God. This can relieve that party from performing the contract.
FREE ALONGSIDE Seller delivers goods to appropriate dock or terminal at port of embarkation and buyer covers  costs and risks of loading.
FREE (OF) TURN Time lost (if any) by a vessel for waiting its turn to berth to count as laytime against the charterer. Opposite of “in regular turn”.
FREE DISCHARGE The charterer contracts to discharge the vessel, free of expense to the shipowner.
FREE DESPATCH If loading/discharging achieved sooner than agreed, there will be no freight money returned.
FREE IN & OUT Distance measured amidships from the waterline to the main deck.
FREE IN & OUT AND SPOUT TRIMMED Charterer bears the expenses of the cargo to be loaded, spout trimmed and discharged, free of expense to the shipowner (e.g., bulk wheat).
FREE IN & OUT AND STOWED Charterer bears the expenses of loading, stowing and discharging, free of expense to the shipowner (e.g., bagged rice).
FREE IN & OUT AND TRIMMED Same as FIO plus that the cargo has also to be trimmed at the charterer’s expense, e.g., bulk cargo.
FREE IN & OUT STOWED AND TRIMMED Charterer bears the expenses of the cargo to be loaded, stowed, trimmed and discharged free or expense to the shipowner (e.g., scrap iron).
FREE IN LINER OUT Charterer pays expenses at load port(s), while the shipowner pays the expenses at the discharge port(s)
FREE ON BOARD Seller sees the goods _over the ship_s   rail_ on to the ship which is arranged and paid for by the buyer
FREE OUT Free of discharge costs to owners. Includes seafreight only.
FREE PRATIQUE This expression means that the vessel has a clean bill of health. (The health authorities board the vessel in order to ascertain the correctness of the information given by the master or the agent).
FREE TO CARRIER A modern equivalent of FAS used in intermodal transport where goods are transferred at a nominated forwarder premises, depot or terminal but not actually put on board vessel.
FREE TRADE ZONE A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and reexported without duties being paid. Duties are imposed on the merchandise (or items manufactured from the merchandise) only when the goods pass from the zone into an area of the country subject to the Customs Authority. Also called FOREIGN TRADE ZONE
FREEBOARD Distance measured amidships from the waterline to the main deck.
FREIGHT The money charged by the carrier for transporting goods.
FREIGHT AT DESTINATION Freight payable at destination upon delivery of goods. Also referred to as “freight collect”.
FREIGHT TON Unit of cargo on which freight rate is based, either one tonne or one cubic metre.
FRESH WATER ALLOWANCE Loadline regulations permit extra draft when a vessel loads in fresh water, the reason being that the vessel’s draft becomes less when she reaches open sea (salt water) where the density of water is greater.
FRESH WATER ARRIVAL DRAFT Fresh water draft of a ship on arrival at a port.
FRIDASYS & HOLIDAYS EXCEPTED or FRIDAYS & HOLIDAYS INCLUDED Fhex applies to Muslim countries where Friday is observed as a holiday; Fhinc applies to non-Muslim countries where Friday is not observed as a holiday.
FRUSTRATION There is a question of frustration when through circumstances entirely beyond control of parties commercial object of maritime adventure is entirely frustrated. The expression “frustration of the adventure” in C/Ps relates to a delay of such a duration—without the actual fault of either party—as to frustrate the charter.
FULL & COMPLETE CARGO Cargo required to fill a ship to capacity either by weight or cubic measurement.
GENERAL AVERAGE (G.A.) Ancient principle of equity in which all parties in a sea adventure (ship, cargo, and freight) proportionately share losses resulting from a voluntary and successful sacrifice of part of the ship or cargo to save the whole adventure from an impending peril, or extraordinary expenses necessarily incurred for the joint benefit of ship and cargo.
GENERAL AVERAGE SECURITY Documents the cargo owner presents to the General Average Adjuster to replace the vessel owner’s maritime lien on cargo for its share of General Average and to obtain release of the goods by the Steamship Company. G.A. Security consists of a G.A. Bond and either a cash deposit or an Underwriter’s Guarantee.
GOODS Cargo shipped by sea or air.
GRAB / GRAB DAMAGE Grab is a unit of cargo handling, consisting or two quarter circle metal parts which can be brought together to make a close fit, operated by a crane or winch power. Grab damage is damage to ship caused by use of the mechanical grabs.
GRAIN CAPACITY The capacity in cubic feet of the cargo hold in a ship measured to inside of the shell plating. (If measured to the inside of the frames or cargo battens it is called bale capacity is used for bulk cargoes e.g. grains, and bale capacity is used for general cargo, e.g., pallets.
GROSS TERMS (GROSS CHARTER) Type of voyage charter in which the shipowner pays for tally, loading, stowing, trimming and discharging costs. The alternative is fio, fios, fiot or foist where the cost of tally, loading, discharging, etc., are for charter’s account. (However the port charges are paid by the shipowner in all cases).
GROSS TONNAGE The vessel’s internal space measured in units of 100 cu.ft. The certificate of tonnage specifies the ship’s gross tonnage. (Generally speaking, gross tonnage is a measure of the volume of a vessel and net tonnage represents the volume available for cargo, that is, the revenue earning space in a vessel). Different tonnage measurement systems (i.e British, Suez Canal or Panama Canal) have different tonnages for the same vessel.
GUARANTEED FREIGHT Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier’s control.
HANDY SIZE / MAX Bulk carriers in the range of 20,000-50,000 tonnes dwt.
HARMONIZED SYSTEM An international commodity classification system, developed under auspices of Customs Cooperation Council, adopted by the United States in 1989 and increasingly the most widely accepted import/export classification methodology. Replaces SCHEDULE B export codes and TARIFF SCHEDULE OF THE U.S. import codes.
HATCH COAMING Steel parapet surrounding a hatchway which rises vertically to prevent (i) a person from falling into the hatch, and (ii) water from entering the hold.
HEAD CHARTERER Most C/Ps allow the charterer to sub-let or sub-charter the vessel to other charterers. The original charterer is then called the “head charterer” or “disponent owner”.
HEAVY GRAINS, SOYA BEANS & SORGHUMS What [SF44-49], soyabeans [SF48-52] and sorghums [SF 44-49] are considered as heavy grains. Also rye and maize are heavy grains. Barley and oats are classified as light grains. In practice heavy-grains constitute the bulk of the grain shipments.
HEAVY HANDY DEADWEIGHT SCRAP A type of scrap metal cargo. It is neither very light nor very heavy and is therefore called “handy” with a SF of between 48-52.
HIRE The payment for hiring a vessel on a time-chartered basis.
HOLIDAY Means a day of week (or part thereof) on which cargo work on the ship is suspended at the place of loading/discharging by reason of the local practice or custom. The day may usually be used for rest (Sunday) or may be observed as a religious festival (Christmas).
ICE CLAUSE To safeguard the shipowner that the vessel is sent to a safe port free from ice, a protective clause dealing with ice, a protective clause dealing with ice conditions in inserted in the C/P.
IN BOND A term applied to the status of merchandise admitted provisionally to a country without payment of duties — either for storage in a bonded warehouse or for trans-shipment to another point, where duties will eventually be imposed.
IN GEOGRAPHICAL ROTAION If an option is given to the charterers to load or discharge a ship in more than one part within a range of ports, it is important to state that if they exercise the option the ship will proceed to the ports in geographical rotation (without, for example, going north and south and then again north). This is important to the owner to determine the distance, time and fuel expenses.
IN REGULAR (USUAL) TURN / TURN TIME Turn refers to the sequence in which a vessel may be allowed to berth for (coal) loading or discharging by the port authorities due to congestion at the port (or availability of coal). Laytime does not generally count against the charterer while the ship is waiting its turn. However, if the C/P says “free of tune” then time waiting for a berth will count.
IN TRANSITU On the passage.
IN WRITING Writing means in relation to a notice of readiness, a notice in any manner or mode and includes fax, cable, telegram and telex.
INDEFINITE LAYTIME This arises in cases where the shipowner agrees for the vessel to be loaded/discharged as fast as can, with customary dispatch, with customary quick dispatch or as per the custom of the port. In such cases there is no way to determine the exact time the vessel will take for loading and discharging.
INHERENT VICE A loss caused by the inherent nature of the thing insured and not the result of a casualty or external cause.
INLAND BILL OF LADING A bill of lading used in transporting goods overland to the exporter’s international carrier.
INSTITUTE WARRANTY LIMITS In insurance, a set of warranties (i.e. same as conditions, in insurance) in a hull policy which prohibit the vessel from entering certain waters (mainly ice areas) without payment of additional premium or with a change in conditions.
INTERCLUB AGREEMENT An agreement by 14 mutual associations concerning the method of settling liability of cargo claims between shipowners and charterers. The Inter-Club New York Produce Exchange Agreement is a clause in the NYPE time C/P.
INTERMODAL Carriage of a commodity by different modes of transport, i.e. sea, road, rail and air within a single journey.
INTERNATIONAL TRANSPORT WORKERS’ FEDERATION Organisation which looks after the welfare of transport workers and deals with their pay and working conditions. It issues the “ITF Blue Certificate” to a ship if its owner complies with their requirements. Non-production of such a certificate can cause problems for a vessel in all Australian ports and in some ports of other countries.
IRREVOCABLE LETTER OF CREDIT A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.
JETTISON CLAUSE Clause in a B/L or C/P setting out the circumstances under which a master is entitled to jettison goods from a vessel. (Jettison is to throw goods overboard for the purpose of lightening the ship).
KEEL CLEARANCE Minimum distance between the bottom of a ship and the bed of sea, also called under keel clearance.
LAYCAN Stands for “laydays commencing / laydays canceling” and is a spread of dates which provides for the earliest date for the ship to arrive and for laytime to commence and also gives the last date for the charterer to cancel the charter if the vessel does not arrive by the date.
LAYDAYS The correct interpretation of this is the earliest time when the vessel is expected to be ready for loading and/ or discharging. (Sometimes the word is used to refer to “laytime” but then this leads to confusion. Laytime is the period allowed for the cargo to be loaded and/or discharged).
LAYTIME Means the period of time agreed between the parties during which the owner will make and keep the ship available for loading/ discharging without payment additional to the freight. The time allowed to the charterer is not indefinite. The time is either “fixed” or “calculable”.
LAY-UP To stop trading a ship temporarily due to bad markets. During lay-up the daily running lost of the ship is greatly reduced.
LANE METER A method of measuring the space capacity of Ro/Ro ships whereby each unit of space (Linear Meter) is represented by an area of deck 1.0 meter in length x 2.0 meters in width.
LENGTH OVERALL Maximum length between the extreme ends (forward and aft) of the ship. (Also referred to as “overall length”).
LETTER OF CREDIT – COMMERCIAL A letter addressed by a bank, at the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts.
LETTER OF INDEMINITY A written statement in which one party (shipper) undertakes to compensate another (shipowner) for the cost and/or consequences of carrying out a certain act, e.g., obtaining a release of goods without producing an original B/L.
LIEN The right to retain control of cargo until the charges related to it are paid.
LIGHT CARGO Goods which fill the ship cubically but do not bring it down to its marks are called light cargoes. (Goods which bring the ship down to its marks but do not completely fill the space available for cargo are called heavy cargoes).
LIGHTENNING (OR LIGHTERAGE) To reduce the draft of the vessel so as to enable it to enter the part/berth where the depth of available water is restricted. This may be achieved by lightening or lighterage by discharging part of the cargo in barges outside the port/berth.
LINER IN FREE OUT The shipowner bears all costs for loading (stowing, trimming etc.). The charterer (or receiver/consignee) pays all costs incurred for discharge at the destination part.
LINER TERMS A rate that includes freight plus handling charges at loading and discharging ports. (Similar to “Gross terms” used in bulk cargo tramp vessels).
LOAN RECEIPT Document signed by the Assured where he acknowledges receipt of money advanced by the insurance company as an interest-free loan (instead of payment of a loss) repayable to the insurance company only if the loss is recovered from a third party and then only to the extent of the recovery.
LOSS OF MARKET A situation in which, for one reason or another, sound cargo is no longer wanted by the consignee when it arrives. This is a “business loss” not recoverable under a Marine Cargo Policy; e.g., Christmas trees arriving in January undamaged.
LOWEST ASTRONOMICAL TIDE It pre-supposes that at the very wors there would always be that depth of available water at the particular spot.
LUMPSUM FREIGHT A fixed sum is paid to the shipowner regardless of the quantity of cargo actually shipped.
MANIFEST An itemized list by Bill of Lading number of the kind and quantity of all cargoes loaded aboard a vessel, prepared by the vessel’s Master.
MEAN DRAFT Average of forward and aft draft of a vessel.
MIN/ MAX Minimum and maximum cargo; a fixed quantity.
MORE OR LESS CHARTERER’S OPTION Gives the option to the charterer to increase or decrease the quantity of cargo by a percentage agreed in advance.
MORE OR LESS OWNER’S OPTION Gives the option to the shipowner to increase or decrease the quantity of cargo by a percentage agreed in advance, e.g., 10,000 tonnes 5% more or less in owner’s option, means that the shipowner may load between 9500 to 10500 tonnes of cargo.
NAMED PERILS POLICY Any marine policy limiting coverage to perils specifically listed in the policy; opposed to All Risks policy. See “All Risks.”
NESTING Implies that cargo is presented stacked in the contour of similarly shaped cargo, it may be likened to a stack of plates. This is particularly relevant in the presentation  of tankage strakes for transport.
NET CHARTER After delivery of the vessel in the first port of loading, the charterer pays all additional port charges, cost of loading and discharging in the first and any additional port of loading and in the port of discharge. After completion of discharge the vessel is re-delivered to the owner and the outward port charges from the port of redelivery is for the owner’s account. (Not a popular form of chartering nowadays).
NET TONNAGE The figure represents the total revenue earning space (volume) within a ship available for the cargo. This is gross tonnage less “deductions” and less “allowances for propelling machinery space” and is calculated in units of 100 cu.ft. (Net tonnage is also referred as “register” tonnage).
NON-DEMISE CHARTERS Time and voyage charters fall under this category as opposed to demise and bareboat charters.
NON-REVERSIBLE / NORMAL LAYTIME Means notice by the master or his agent to the charterer, shipper, receiver or any other persons as required by the charterer, that the ship has arrived at the port or berth as the case may be and is ready to load/discharge in all respects. Laytime begins to count from the moment when NOR has been tendered by charterers/consignees.
OCEAN BILL OF LADING Bill of lading indicating that the exporter consigns a shipment to an international carrier for transportation to a specified foreign market. Unlike an inland B/L, the ocean B/L also serves as a collection. If it is a straight B/L, the foreign buyer can obtain the shipment from the carrier by simply showing proof of identity. If a negotiable B/L is used, the buyer must first pay for the goods, post a bond, or meet other conditions agreeable to the seller.
OFF-HIRE CLAUSE In a time C/P it specifies the circumstances under which hire is suspended or reduced.
ON DEMURRAGE Means that the laytime has expired. Unless the C/P expressly provides to the contrary the time on demurrage will not be subject to the laytime exceptions.
ONCE ON DEMURRAGE ALWAYS ON DEMURRAGE Time on demurrage is continuous unless exceptions to demurrage are contained in the C/P.
OPEN Said of a ship, which is available at a particular place to load her next cargo, having discharged the last one.
OPEN CHARTER A C/P in which neither the ports of destination nor the nature of the cargoes are specified and the vessel may fix for any cargo and for any ports.
OPEN POLICY A cargo policy with no expiration date that provides automatic coverage of cargo to or from an Assured in a specified trade at agreed rates, terms, and conditions. Usually consists of separate Marine and War policies.
OPEN PORT A port that is free of ice.
P & I BUNKERING CLAUSE The ship is permitted to deviate without breaking the contract for lifting bunkers at ports where it may be cheaper.
PALLET A low portable platform, usually wooden, on which cargo is stacked for storage or transportation; a skid.
PANAMAX A bulk carrier of about 65,000 tonnes deadweight whose dimensions enable her to transit the Panama Canal where due to locks draft, beam and length are limiting factors.
PER HATCH PER DAY The expressionis used to calculate laytime with reference to the number of cargo hatches serving cargo compartments on the vessel. Laytime is to be calculated by multiplying the agreed rate per hatch of loading/discharging the cargo by the number of ship’s hatches and dividing the quantity of cargo by the resulting sum. Thus, Laytime= Quantity of Cargo/Daily Rate x Number of Hatches = Days; A hatch that is capable of beign worked by two gangs simultaneously shall be counted as two hatches.
PER WORKING HATCH PER DAY or PER WORKABLE HATCH PER DAY This expression is more in charterer’s favour than “per hatch per day”. The word “working” or “workable” hatch means that hatch can be worked because there is cargo in the hold below it. Workability refers to the cargo and not cranes/derricks that serve the hatch in question. Largest quantity in one hold/Daily rate per hatch x Number of hatches serving that hold =Days; A hatch that is capable of being worked by two gangs simultaneously shall be counted as two hatches.
PERILS OF THE SEA Fortuitous accidents or casualties, peculiar to transportation on a navigable water, such as stranding, sinking, collision of the vessel, striking a submerged object, or encountering heavy weather or other unusual forces of nature.
PHYTOSANITARY INSPECTION CERTIFICATE A certificate, issued by the US Department of Agriculture to satisfy import regulations for foreign countries, indicating that a US shipment has been inspected and is free from harmful pests and plant diseases.
PILFERAGE The theft of part of the contents of a shipping package.
POLITICAL RISK In export financing the risk of loss due to such causes as currency inconvertibility, government action preventing entry of goods, expropriation or confiscation, war, etc.
PORT Means an area within which ships are loaded with or discharged of cargo, and includes the usual place where ships wait for their turn or are ordered or obliged to wait for their turn, no matter the distance from that area.
PORT / PORTSIDE The left side of a vessel when viewed forward. (The right side is called starboard).
PRATIQUE License or permission to use a port
PRO FORMA INVOICE An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and important specifications (weight, size, etc.)
PROMPT SHIP Vessel that can be ready to load at short notice, say within a few delay.
REACHABLE ON ARRIVAL or ALWAYS ACCESSIBLE The charterer undertakes that when the ship arrives at the port there will be a loading/discharging berth for her to which she can proceed without delay.
REVENUE TONNE Revenue Tonne (i.e. 1.0 metric Tonne or 1.0 cubic meter, whichever greater). The overall RT is calculated on a line by line basis of the Packing List using the largest amount. The overall freight liability is calculated on the total RT amount, multiplied by the freight rate.
REVERSIBLE LAYTIME An option given to the charterer to add together the time allowed for loading and discharging. When the option is exercised the effect is the same as a total time being specified to cover both operations. Until the toal time expires, no demurrage becomes payable. Opposite of normal or non-reversible laytime. (See “days all purposes”).
RIDER CLAUSES A set of additional clauses which substitute or supplement the clauses in the original standard C/P form. If a rider clause contradicts a printed clause the rider clause prevails.
ROUND VOYAGE Voyage involving two legs, the second of which brings the ship back to the first port.
RUNNING DAYS / CONSECUTIVE DAYS Days which follow one immediately after the other. They are continuous. A working day may exclude Sundays and holidays. But a running day does not exclude any day unless provided in the C/P.
SAFE BERTH A berth which, during the relevant period of time, the ship can reach, remain at and depart without being exposed to danger.
SAFE PORT A port which, during the relevant period of time, the ship can reach, enter, remain at and depart without being exposed to danger.
SAFE WORKING LOAD Maximum load which can safely be carried by a crane or a derrick.
SALE & PURCHASE BROKER Person who negotiates the terms for the sale of a ship on behalf of the buyer or seller.
SALT WATER ARRIVAL DRAFT Vessel’s draft on arrival in salt water where the density of water is 1025 kg per cbm.
SAVAGE Action taken to save a ship or her cargo from loss or damage at sea. Property saved from loss or damage at sea.
SCALE RATES Rates set by organizations which publish standard C/Ps. The scale rates contain daily loading rates as well as demurrage rates. Applicable to bulk cargoes like coal, ores, etc., from specific countries.
SEAFREIGHT Costs charged for transporting goods over the sea. This does not cover any haulage or loading/discharging costs but the sea transport only.
SEGREGATED BALLAST TANK Tank which is used for water ballast only.
SELF-TRIMMING SHIP Ship whose holds are shaped in such a way that a bulk cargo loaded into her will level itself.
SHIFTING Time spent shifting between berths is generally taken to be for owner’s account, provided it has been agreed that loading/discharging is at more than one berth. Also time spent in shifting from the waiting place (anchorage) to the first cargo berth is generally not to count as laytime.
SHIPPER’S EXPORT DECLARATION A form required for all shipments by the US Treasury Department and prepared by the shipper, indicating the value, weight, destination, and other basic information about an export shipment.
SHIPPER’S LOAD AND COUNT Note on bill of lading indication that the contents of a container were loaded and counted by the shipper and not checked or verified by the Steamship Company.
SKIDS Are bearers (timber or steel) positioned under cargo to enable fork lift handling at port, and for ease of rigging and lashing on board ship.
SPECIAL POLICY OF INSURANCE Document issued on behalf of the Underwriter stating the terms and conditions of the marine insurance. Issued when evidence of insurance is required, as by the bank issuing the Letter of Credit.
SPECIFIC GRAVITY Ratio of the weight of a liquid to its cubic capacity. Also called “relative density”. Water has SG of 1.00 (1 cubic metre of water weighs 1 tonne).
SPIDERING Is the internal strengthening of circular tanks for transport, this prevents the tanks becoming warped. The tanks are strengthened with steel or wood crossbeams giving a _spider_ appearance.
SPOT A vessel which can commence loading immediately after the charter has been fixed. Also used for cargo which is available for immediate loading.
SS OR SUBSTITUTE Such a condition in a C/P entitles the owner to replace the original vessel by another ship, of same cargo capacity including class and suitability of laycan, for the fulfillment of the charter.
STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC) A standard numerical code system developed by the United Nations to classify commodities used in international trade.
STABILITY It is paramount that a vessel is stable in all respects at all times. When cargo is loaded/discharged, the stability is monitored by a computer, which takes into account the weight and position of cargo within the vessel.
STARBOARD The right side of a ship when looking forward. (By remembering that port and left both have four letters, it is easier to remember which is port and which is starboard).
STATEMENT OF FACTS Statement prepared by an agent showing dates and times of arrival; commencement and completion of loading and discharging; quantity loaded/discharged daily; hours worked/stopped with reasons for break-down of equipments, etc.
STOWAGE FACTOR The space occupied by a ton (or tonne) of a commodity in a ship’s hold expressed in cubic feet to the ton or cubic metres to the tonne Or Cubic space (measurement tonne) occupied by one tonne (2,240 lbs/1,000 kgs) of cargo.
STRAIGHT BILL OF LADING A non-negotiable bill of lading in which the goods are consigned directly to a named consignee.
STRIKES Some C/Ps state that delays due to strikes are not to count as laytime.
SUBJECT STEM Implies that the vessel is fixed subject to the cargo quantity being available in the laydays agreed upon.
SUBJECTS Means that the acceptance of the terms offered by the other side is “conditional” and hence a conditional acceptance is not an agreement.
SUBROGATION The operation by which the insurance company (on payment of a claim) assumes all of the assured’s rights to recovery from any third parties; substitution of one creditor for another.
SUEZMAX bulk carriers of about 150,000 tonnes dwt with a draft of 53′ which can transit the Suez Canal fully laden.
SUNDAYS & HOLIDAYS EXDEPTED / INCLUDED Under this expression Sundays and holidays will not count as laytime (excepted) /will count as laytime (included).
SUPERCARGO A person on board representing the charterer who supervises cargo operations. Owners feed the supercargo at a nominal rate but provide free of charge accommodation.
SURVEYOR A marine specialist who examines damaged property and determines the cause, nature, and extent of damage and methods of repair and/or replacement. He is not an adjuster, and all his actions are without prejudice to policy terms and conditions.
TAKING INWARD PILOT A point of delivery on to a time charter. The vessel’s delivery commences with the pilot boarding the ship. If weather is bad pilot may not be able to board the vessel. Hence the ship cannot be considered to be delivered. This term therefore favours the charterer, whereas “arrival pilot station” is favourable to the shipowner.
TARE WEIGHT The weight of a container and packing materials without the weight of the goods it contains.
TEN PERCENT BAGS FOR SAFE STOWAGE Some C/Ps stipulate that if a charterer loads in bulk, e.g., grain, 10% of the cargo must be laoded in bags to bring the ship down to her marks.
TENOR The term fixed for payment of a draft.
TERMS OF SALE The invoice is the sales contract between buyer and seller and indicates the Terms of Sale.
THROUGH BILL OF LADING A single bill of lading converting both the domestic and international carriage of an export shipment. An air waybill is essentially a through bill of lading used for air shipments. However, ocean shipments usually require two separate documents — an inland B/L for domestic carriage and an ocean B/L for international carriage. Through bills of lading are insufficient for ocean shipments.
TIME CHARTER Employment of a vessel for a specific period of time, say, 2 months. The charterer has no possession or control of the ship. The shipowner receives “hire” payments from the charterer, usually so-much per day or pro-rata paid semi-monthly or monthly in advance. Also called “period charter”.
TIME LOST WAITING FOR BERTH TO COUNT AS LOADING / DISCHARDING TIME or AS LAYTIME If the main reason why NOR can not be given is that there is no loading/discharging berth available to the ship the laytime will commence to run when the ship starts to wait for a berth and will continue to run, unless previously exhausted, until the ship stops waiting. The laytime exceptions apply to the waiting time as if the ship were at the loading/discharging berth provided the ship is not already on demurrage. When the waiting time ends time commences to count and restarts when the ship reaches the loading/discharging berth subject to say notice time if provided for in the C/P, unless the ship is by then on demurrage.
TIME SHEET In order to calculate the time used for loading or discharging a time sheet is drawn up from the statement of facts to determine if any demurrage/dispatch in payable.
TON PER INCH / CENTIMETRE The weight which must be added to, or taken from, a ship in order to change its mean draft by one inch or one centimeter.
TONNAGE Gross Tonnage – Total internal carrying capacity of a vessel expressed in measurement tons (one measurement ton = 100 cu. ft.).
TOTAL COMMISSION Total of (a) address commission [adcom] to charterer plus (b) brokerage to shipbroker.
TRADING LIMITS Limits or restrictions imposed by the shipowner on a time charterer’s freedom to nominate ports to ensure that a list of places considered unsafe is excluded. Usually followed by the words “within Institute Warranty Limits”.
TRANSIT SHIPMENT A term designating a shipment destined for an interior point or a place best reached by reshipment from another port.
TRANSSHIPMENT To transfer from one ship or conveyance to another for further transit.
TRIMMING The operation of shoveling grain, coal and other bulk cargoes to the wings or ends of the holds when loading.
TRIP-TIME CHARTER A vessel chartered on time charter terms but for a specific voyage and expected duration. The charterer pays hire instead of freight and the contract is that of a time charter.
TURN ROUND TIME Time taken to discharge and/or load a ship at a terminal.
ULLAGE Historically quantity a cask or drum lacks of being full. Nowdays the term is used for tankers or oil storing tanks representing empty spaces.
ULTRA LARGE CRUDE CARRIERS Tankers above 320,000 tonnes dwt.
UNLESS SOONER COMMENCED Time actually used before commencement of laytime shall count.
UNLESS USED This refers to the counting of laytime and exceptions to laytime such as Sundays and holidays. If work is carried out during the expected days the actual hours of work only to count as laytime.
VALUATION CLAUSE The clause in the Marine Policy that contains a fixed basis of valuation agreed upon by the Assured and the Underwriter and which establishes the insured value of the merchandise. The Clause determines the amount payable under any recoverable loss or General Average contribution.
VERY LARGE CRUDE CARRIERS Tankers in the range of 160,000 to 319,000 dwt.
VESSEL Every description of watercraft or other artificial contrivance used, or capable of being used, as a means of transportation on water.
VOYAGE CHARTER Employment of a vessel for a specific and certain voyage to load at one or more named ports to be carried to a named discharging port or ports. The owner’s remuneration is known as freight calculated on the amount of cargo carried. Voyage C/P contains laytime and demurrage/dispatch clauses.
WAR RISKS Those risks related to two (or more) belligerents engaging in hostilities, whether or not there has been a formal declaration of war. Such risks are excluded by the F.C.&S. (Free of Capture and Seizure) Warranty, but may be covered by a separate War Risk Policy, at an additional premium.
WAREHOUSE RECEIPT A receipt supplied by a warehouseman for goods he has placed in storage.
WAREHOUSE-TO-WAREHOUSE CLAUSE The clause in the Cargo Policy that defines when coverage commences and terminates. It is the intent of the policy to attach at the time the goods leave the warehouse of origin named in the Policy, and to continue while the goods are in due course of transit until delivered to the warehouse of destination named in the Policy, where it terminates.
WEATHER PERMITTING That time during which weather prevents working shall not count as lay time.
WEATHER WORKING DAY A working day or part of a working day during which it is possible (if the vessel is loading / discharging) to load of discharge the cargo without interference due to weather. If such interference occurs (or would have occurred if work had been in progress) there shall be excluded from laytime a period calculated by reference to the ratio which the duration of the interference bears to the time which would have or could have been worked but for the interference.
WHARFAGE A charge assessed by a pier or dock owner for handling incoming or outgoing cargo.
WHETHER IN BERTH OR NOT or BERTH NO BERTH If the location named for loading/discharging is a berth and if the berth is not immediately accessible to the ship NOR can be given when the ship has arrived at the port in which the berth is situated.
WHETHER IN FREE PRATIQUE OR NOT With the insertion of this phrase, NOR can be tendered even if the health clearance formalities are not completed.
WHETHER IN PORT OR NOT The vessel need not exactly be within the port limits for NOR to be tendered. If is possible to do this if the vessel has arrived at the usual waiting place for the vessel to become an arrived ship.
WITH OUT GUARANTEE By the use of this phrase the shipowner is not bound by the veracity of the statement. The phrase is commonly used during negotiations in order to guard all parties involved in the transactions.
WORKING DAY Day or parts of a day which are not expressly excluded from laytime by the C/P and which are not holidays.
WORLDSCALE Scale by which tanker freight rates are quoted.


Posted by Shipbroker at 12:25 PM   Links to this post

Labels: Baltic Dry Index, Bunker Prices, Chartering Terms Definition, Shipping Terms

Tuesday, May 08, 2007


Shipping Terms

The following are generally accepted code terms used internationally in the shipping community

AGW All going well
AAAA Always Afloat, Always Accessible
AARA Amsterdam-Antwerp-Rotterdam Area
ABT About
ADCOM Address Commission
AFSPS Arrival First Sea Pilot Station (Norway)
AFFREIGHTMENT The hiring of a ship in whole or part
AFT At or towards the stern or rear of a ship
AHL Australian Hold Ladders
ANTHAM Antwerp-Hamburg Range
APS Arrival Pilot Station
ARAG Amsterdam-Rotterdam-Antwerp-Gent Range
A/S Alongside
ATDNSHINC Any Time Day/Night Sundays and Holidays Included
ATUTC Actual Time Used To Count
BAF Bunker Adjustment Factor
BALLAST Heavy weight, necessary for the stability of a ship not carrying cargo.
BBB Before Breaking Bulk
BDI Both Dates Inclusive
BENDS Both Ends
BI Both Inclusive
BIMCO Baltic and International Council
BL Bill of Lading
BM Beam
BOB Bunker on Board
BOFFER Best Offer
BROB Bunkers Remaining on Board
BSS Basis
B S S 1/1 Basis 1 port to 1 port
BT Berth Terms
BWAD Brackish Water Arrival Draft
CBM Cubic Meter
CBFT Cubic Feet
C&F Cost and Freight
C&F FO Cost & Freight Free Out
CHOPT Charterers Option
CHTRS Charterers
CIF Cost, Insurance & Freight
CKD Completely knocked down
COA Contract of Affreightment
COACP Contract of Affreightment Charter Party
COB Closing of Business
COD Cash on Delivery
COGSA Carriage of Goods by Sea Act
CONS Consumption
COP Custom Of The Port
CP Charter Party
CPD Charterers Pay Dues
CPT Carriage Paid To
CQD Customary Quick Dispatch
CR Current Rate
CROB Cargo Remaining on Board
CRN Crane
CST Centistoke
CTR Container Fitted
DAPS Days All Purposes
DAMFORDET Damages for Detention
DDU Delivery Duty Unpaid
DDP Delivery Duty Paid
DEM Demurrage
DHDATSBE Dispatch Half Demurrage on All Time Saved Both Ends
DHDWTSBE Dispatch Half Demurrage on Working TIme Saved Both Ends
DISCH Discharge
DK Deck
DOP Dropping Outward Pilot
DOT Department of Transportation
DNRCAOSLONL Discountless and Non-Returnable Cargo and/or Ship Lost or Not Lost
DRK Derrick
DWAT Deadweight
EC East Coat
EIU Even if used
ELVENT Electric Ventilation
ETA Estimated Time of Arrival
ETC Estimated Time of Completion
ETD Estimated Time of Departure
ETS Estimated Time of Sailing
EXW Ex Works
FAS Free Alongside Ship
FCA Free to Carrier
FDEDANRSAOCLONL Freight Deemed Earned Discountless & Non-Refundable Ship &/or Cargo Lost Or Not Lost
FDESP Free Dispatch
FDD Freight Demurrage Deadfreight
FDIS Free Discharge
FEU Standard 40′ Container
FHEX Fridays, Holidays Excepted (Muslim Countries)
FHINC Fridays, Holidays Included (Muslim Countries)
FILO Free In/Liner Out
FIOS Free In & Out & Stowed
FIOST Free In & Out, Stowed & Trimmed
FIOT Free In & Out & Trimmed
FIW Free In Wagon
FMC Federal Maritime Commission
FMS Fathoms
FO Fuel Oil
FOB Free On Board
FOG For Our Guidance
FOQ Free On Quay
FOQ Free On Truck
FOW Free On Wharf
FWAD Fresh Water Arrival Draft
FWDD Fresh Water Departure Draft
FYG For Your Guidance
FYI For Your Information
GA General Average
GLS Gearless
GNCN General Conditions
GN Grain
GO Gas Oil
GRD Geared
GRT Gross Restricted Tonnage
GSB Guaranteed Safe Berth
GSP Good Safe Port
GTEE Guarantee
HA Hatch
HDLTSBENDS Half Dispatch Lay Time Saved Both Ends
HDWTS Half Dispatch Working Time Saved
HMS Heavy Metal Scraps
HO Hold
HW High Water
IMDG International Maritime Dangerous Goods Code
IMO International Maritime Organization
IND Indication
IU If Used
IUHTAUTC If Used, Half Time Actually to Count
I WL Institute Warranty Limits
LAT Latitude
LOA Length Overall of the Vessel
LW Low Water
LYCN Laycan (Layday Cancelling Date)
MB Merchant Broker
MDO Marine Diesel Oil
MOLCHOPT More or Less Charterers Option
MOLOO More or Less Owners Option
MT Metric Ton
M/V Motor Vessel
NAABSA Not Always Afloat but Safely Aground
NCB National Cargo Bureau
NOR Notice of Readiness
NRT Net Restricted Tonnage
NYPE New York Produce Exchange
OO Owners Option
OSH Open Shelter Deck
OWS Owners
PC Period of Charter
PCGO Part Cargo
PCT Percent
PDPR Per Day Pro-rated
PHPD Per Hatch Per Day
PRATIQUE License or permission to use a port
PWWD Per Weather Working day
RCVR Receivers
ROB Remaining on Board
RT Revenue Ton
SATPM Saturday P.M.
SB Safe Berth
SD Single Decker
SELFD Self Discharging
SF Stowage Factor
SHEX Sundays, Holidays Excepted
SHINC Sundays, Holidays Included
SL Bale (capacity)
SOC Shipper Owned Container
SOF Statement of Facts
SP Safe Port
SRBL Signing and Releasing Bill of Lading
SSHEX Saturdays, Sundays, Holidays Excluded
SSHINC Saturdays, Sundays, Holidays Included
STEM Subject to Enough Merchandise
SUB Subject (to)
SWAD Salt Water Arrival Draft
SWDD Salt Water Departure Draft
TC Time Charter
TEU Standard 20′ Container
TTL Total
TW Tween Decker
USC Unless Sooner Commenced
UU Unless Used
UUIWCTAUTC Unless Used In Which Case Time Actually Used To Count
VPD Vessel Pays Dues
WIBON Whether In Berth Or Not
WIFPON Whether In Free Pratique Or Not
WCCON Whether Customs Cleared Or Not
WIPON Whether In Port Or Not
WLTOHC Water Line-To-Hatch Coaming
WOG Without Guarantee
WP Weather Permitting
WWD Weather Working Day
WRIC Wire Rods In Coils
WWR When, Where Ready
YAR York Antwerp Rules

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