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Shipping Terms Glossary

Shipping Terms Glossary

ARA - Antwerp/Rotterdam/Amsterdam. Major coal
importing ports in northwest Europe.

Ballast - (a) the material (usually water in ballast tanks)
used to stabilise a vessel when partially loaded or empty, (b) In Ballast - term
to describe vessel sailing empty to next loading port.

BENDS - Abbreviation for 'both ends'. Used when any
loading and discharging term for a vessel is the same for both loading and
discharging operations.

BFI - Baltic Freight Index - an index reflecting a
composite number of routes, issued on a daily basis.

BIFFEX - Baltic International Freight Futures
Exchange -exchange on which freight future contracts are traded and the BFI
is published.

Bill of Lading (B/L) - Document serving three functions: (1)
receipt for cargo prepared by the shipper and signed by the carrier; (2)
'document of title' to the cargo i.e. proof of ownership; and (3) provides
evidence of terms and conditions of the contract of carriage of cargo by
sea.

Brokerage - the remuneration for brokers' time and effort in
negotiating the Charter Party (qv); expressed as a % of freight or hire
payment received by shipowner.

Bunkers - term for fuel used by a vessel.

Bunker Clause - Time Charters stipulate that charterer
accepts & pays for all fuel on the vessel at port of delivery; on redelivery
owner shall pay for any fuel remaining on board.

Bunker Escalation / De-escalation Clause - in a COA it is
sometimes usual to link freight rate to market price of bunkers at time of
fixing, in order to adjust freight rate in line with bunker price movements at
time of each shipment.

C & F / CFR - Cost and Freight - method of
selling cargo where seller pays for loading costs and ocean freight.

Capesize - a ship of about 80,000 DWT. (A vessel which is
too large to transit the Panama Canal and thus has to sail via Cape of Good Hope
from Pacific to Atlantic and vice versa.)

Charter Party - document containing details of the fixture
of the chartered vessel. Standard form charter parties for various trades are
normally used, but some charterers use private forms.

CIF - Cost, Insurance and Freight - method of
selling cargo where seller pays for loading costs, ocean freight and
insurance.

COA - Contract of Affreightment - a Charter Party covering
more than one voyage.

Deadfreight - freight payable on cargo space booked but not
actually used.

Demurrage - financial compensation paid by charterer to the
vessel for delays after the laytime has expired at the load/discharge port.

Despatch - financial reward paid by the owner to the
charterer if the load / discharge operations are completed in advance of expiry
of laytime. Usually paid at half the demurrage rate.

Draught - vertical distance between the waterline and the
keel. Figures quoted refer to a fully-laden vessel.

Draught Survey - survey undertaken at the load/ discharge
port to determine by means of draught measurement how much cargo is on
board.

DWT - Deadweight Tonnes - deadweight capacity of
vessel comprising cargo, bunker fuel, fresh water, stores etc.

DWCC - Deadweight Cargo Capacity - the portion of
the deadweight available for the carriage of the cargo.

ETA - Estimated Time of Arrival (of vessel).

ETD - Estimated Time of Departure (of vessel).

ETR - Estimated Time of Readiness.

FIO - Free In and Out - confers the responsibility
to the charterers (shippers / receivers) to arrange the stevedores and to load /
discharge the cargo on their own account ie free of expense to vessel owners,
who are still accountable for port charges.

FIOST - Free In and Out Stowed and Trimmed - as for FIO, but
also including stowing and trimming free of expense to vessel owner.

FOB - Free On Board - method of selling cargo excluding
ocean freight and insurance, but including loading costs.

FOBT - Free On Board Trimmed - as for FOB, but including
trimming of cargo after loading.

Force Majeure - circumstances beyond reasonable control of
the party/parties.

Free Pratique - clean bill of health for ship and crew.

Freight - the money paid on a Voyage Charter by the
charterer to the owner.

Gearless - a ship without means on board for the
loading/unloading of cargo.

Handymax - inexact term, but normally taken to mean a vessel
of about 40-60,000 DWT.

Handysize - inexact term, but normally taken to mean a
vessel of about 10-40,000 DWT.

Hire - money paid on a Time Charter by the charterer to
the owner.

Laycan - Laydays & Cancelling Date - the earliest and
latest dates on which the vessel must be ready to load at the port or be
delivered to the time charterer.

Laydays - specific time period (days) during which the
vessel must arrive at the loading port ready for loading.

Laytime - time allowed for the vessel's cargo to be
loaded/discharged without incurring demurrage.

LOA - Length Overall - total length of vessel aft to
fore.

Mate's Receipt - document signed by Chief Officer
acknowledging receipt of cargo on board a vessel.

MOLOO - More Or Less in Owner's Option (tonnage caveat).

NOR - Notice of Readiness - notice given by ship that it is
ready to load/discharge its cargo.

OBO - Ore/Bulk/Oil Multi-purpose Carrier.

Outreach - total distance that a port's loading/ discharging
equipment can reach out over a vessel.

Panamax - vessel of about 60-80,000 DWT. (Technically the
maximum size vessel that can transit the Panama Canal - restriction of 32.2 M
beam.)

Port Costs / Disbursements - charges normally paid by
shipowner to the port authorities for use of port facilities.

SATSHEX - Saturdays, Sundays & Holidays Excluded.

SB - Safe Berth - a berth, which the vessel can reach and
depart from without being exposed to danger that is unavoidable by good
seamanship. It is the responsibility of the charterrer to provide this.

SF - Stowage Factor - used to determine whether a vessel's
holds will be filled before the vessel reaches its maximum draught. The SF for
coal, depending on type, is between 37 and 48 cubic feet per long ton.

SHINC - Sundays & Holidays Included.

SHEX - Sundays & Holidays Excluded.

SP - Safe Port - as Safe Berth except relates to port.

Spot - term for suitably sized vessel readily available for
short-term charter, usually in vicinity of charterer's requirement.

Stevedore - company engaged in providing loading/
discharging services for vessels.

SWAD - Salt Water Arrival Draft.

Time Charter - fixture whereby charterer hires vessel for a
specified period; payment made on a daily basis and includes fuel used, port
costs etc.

Trimmed - when vessel is stabilised by (a) levelling off
cargo within each hold, and (b) stowing cargo throughout ship so that fore and
aft drafts are practically the same.

Trip Time Charter - fixture whereby charterer hires vessel
for single voyage or round trip; terms and conditions similar to Time
Charter.

Turn Time (TT) - time allowed in the charter party, after
NOR tendered and before laytime commences. Usually quoted in hours.

Voyage Charter - fixture whereby the charterer pays a rate
per ton loaded or on a lump sum basis.

WWD - Weather Working Days - working days in which it is
possible to load/discharge cargo without the interference of weather.

Links

H
Clarkson & Co

Documents

WCA 'Shipping Facts 1' fact card

WCA 'Shipping Facts 2' fact card

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