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
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
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
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
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 Both these terms mean the same. Here the
SAVED or ALL LAYTIME description of the time means that time saved to
SAVED 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 This clause is inserted in a C/P to prevent a
ALWAYS SAFELY AFLOAT 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 A charterparty which has been agreed upon,
CHARTERPARTY 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
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 quot;taking inward
pilotquot; 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 Means that the laytime is calculated by
CAN RECEIVE/DELIVER 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 All vessels trading with Australia must be
LADDERS 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
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
BAREBOAT /DEMISE Lease of a ship wherein the charterer takes over
CHARTER 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
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
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
BERTH TERMS Also referred to as quot;liner termsquot;. 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
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 Brackish is spoken of water in a river when
ARRIVAL DRAFT 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
BREAK BULK Loose cargo, such as cartons, stowed directly in
the ship's hold as opposed to containerized or
bulk cargo. See quot;Containerization.quot;
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 quot;to start the discharge.quot;
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
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 A Fuel Surcharge expressed as a percentage
FACTOR 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 Seller owns goods until they are loaded on
FREIGHT 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
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 1936 U.S. Statute that governs the acts that a
SEA ACT (C.O.G.S.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 A document often required with shipments of
INSPECTION perishable or other goods, when certification
notes the good condition of the merchandise
immediately prior to shipment.
CERTIFICATE OF A statement sometimes notarized by a producer,
MANUFACTURE 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
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 is said to commence once a vessel has
LAYTIME 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 quot;negotiablequot; documents that
represents and takes the place of the goods
themselves in the financing of the cargo sales
COMMISSION PAST US Implies that the quote does not include the
normal commission for the brokers quoting the
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
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 quot;whether
in berth or not (wibon), whether in free pratique
or not (wifpon), and whether customs cleared or
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
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
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
CONTRACT OF In chartering this terms refers to a shipowner
AFFREIGTMENT (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
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 This takes account of the rate of exchange
FACTOR 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 The charter is required to discharge and/or load
CUSTOMARY QUICK as quickly as possible (as fast as can) depending
DESPATCH 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
CUSTOMS BROKER Licensed by U.S. Customs to clear shipments for
clients, also can forward goods quot;In Bondquot; to your
D/A-DOCUMENTS Instructions from a shipper to his bank that the
AGAINST ACCEPTANCE documents attached to a time draft for
collection are deliverable to the drawee against
his acceptance of the draft.
D/P-DOCUMENTS Instructions a shipper gives to his bank that the
AGAINST PAYMENT 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 Penalty if cargo is not ready when ship arrives
DETENTION 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
DATE ON CHARTER The actual date on which the fixture
PARTY 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
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 Weight of the cargo only which a ship can carry
CAPACITY 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 12quot; (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 quot;calculablequot; and quot;indefinitequot;). 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 quot;Delay Causequot; 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- A time charter commences with the delivery of
DELIVERY 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
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
DESPATCH / DESPATCH The money (bonus) payable by the shipowner to
MONEY the charterer if the vessel completes loading or
discharging before the expiry of laytime
stipulated in the C/P. usually half the demurrage
DETENTION & DEMAGES If demurrage has not been agreed in the
FOR DETENTION 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 quot;damages for detentionquot;.
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 quot;deviation clausequot; 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 quot;P & I Bunkering
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 quot;disponent ownerquot;. During the duration of
the charter, he acts as if he were the real
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
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 Some ports require the service of more than one
OUTWARD SEA PILOT 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 A point of delivery on to and re-delivery off a
PILOT time charter. The point where an quot;on-hirequot; or
quot;off-hirequot; 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
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. quot;Unless
usedquot; has the opposite effect and favours the
EX (POINT OF ORIGIN) From the point where the shipment begins
movement, e.g., quot;Ex Factoryquot; quot;Ex Minequot; or quot;Ex
Warehouse.quot; See quot;Terms of Sale.quot;
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 Seller owns goods until they are delivered
STEAMER alongside vessel; selling price includes all costs
so far plus cost of transportation to dock.
FREE OF CAPTURE & Free of Capture & Seizure - Clause excluding war
SEIZURE 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 (Free on board warehouse.) Seller owns goods
WAREHOUSE 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. If a merchant sells on F.O.B., F.A.S., C&F or
ENDORSEMENT 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
FIRST CLASS When the name of the charterer is not revealed
CHARTERER 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
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
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 quot;in regular turnquot;.
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 Charterer bears the expenses of the cargo to be
SPOUT TRIMMED loaded, spout trimmed and discharged, free of
expense to the shipowner (e.g., bulk wheat).
FREE IN & OUT AND Charterer bears the expenses of loading, stowing
STOWED and discharging, free of expense to the shipowner
(e.g., bagged rice).
FREE IN & OUT AND Same as FIO plus that the cargo has also to be
TRIMMED trimmed at the charterer's expense, e.g., bulk
FREE IN & OUT STOWED Charterer bears the expenses of the cargo to be
AND TRIMMED 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
FREE ON BOARD Seller sees the goods _over the ship_s rail_ on
to the ship which is arranged and paid for by the
FREE OUT Free of discharge costs to owners. Includes
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
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
FREIGHT AT Freight payable at destination upon delivery of
DESTINATION goods. Also referred to as quot;freight collectquot;.
FREIGHT TON Unit of cargo on which freight rate is based,
either one tonne or one cubic metre.
FRESH WATER Loadline regulations permit extra draft when a
ALLOWANCE 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 Fresh water draft of a ship on arrival at a port.
FRIDASYS & HOLIDAYS Fhex applies to Muslim countries where Friday is
EXCEPTED or FRIDAYS & observed as a holiday; Fhinc applies to non-Muslim
HOLIDAYS INCLUDED countries where Friday is not observed as a
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 quot;frustration
of the adventurequot; 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 required to fill a ship to capacity either by
CARGO weight or cubic measurement.
GENERAL AVERAGE Ancient principle of equity in which all parties in
(G.A.) 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
GENERAL AVERAGE Documents the cargo owner presents to the
SECURITY 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 Type of voyage charter in which the shipowner
CHARTER) 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
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
HANDY SIZE / MAX Bulk carriers in the range of 20,000-50,000
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 quot;head
chartererquot; or quot;disponent ownerquot;.
HEAVY GRAINS, SOYA What [SF44-49], soyabeans [SF48-52] and
BEANS & SORGHUMS 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
HEAVY HANDY A type of scrap metal cargo. It is neither very
DEADWEIGHT SCRAP light nor very heavy and is therefore called
quot;handyquot; with a SF of between 48-52.
HIRE The payment for hiring a vessel on a time-
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
IN GEOGRAPHICAL If an option is given to the charterers to load or
ROTAION 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 refers to the sequence in which a vessel
TURN / TURN TIME 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 quot;free of tunequot; 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
INHERENT VICE A loss caused by the inherent nature of the thing
insured and not the result of a casualty or
INLAND BILL OF LADING A bill of lading used in transporting goods
overland to the exporter's international carrier.
INSTITUTE WARRANTY In insurance, a set of warranties (i.e. same as
LIMITS 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
INTERNATIONAL Organisation which looks after the welfare of
TRANSPORT WORKERS' transport workers and deals with their pay and
FEDERATION working conditions. It issues the quot;ITF Blue
Certificatequot; 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
IRREVOCABLE LETTER OF A letter of credit in which the specified payment
CREDIT 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
LAYCAN Stands for quot;laydays commencing / laydays
cancelingquot; 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 quot;laytimequot; 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 quot;fixedquot; or quot;calculablequot;.
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 quot;overall lengthquot;).
LETTER OF CREDIT - A letter addressed by a bank, at the insurance
COMMERCIAL 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 To reduce the draft of the vessel so as to enable
LIGHTERAGE) 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
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 quot;Gross termsquot; used in bulk cargo tramp
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
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 quot;business lossquot; not
recoverable under a Marine Cargo Policy; e.g.,
Christmas trees arriving in January undamaged.
LOWEST ASTRONOMICAL It pre-supposes that at the very wors there
TIDE 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 Gives the option to the charterer to increase or
CHARTERER'S OPTION decrease the quantity of cargo by a percentage
agreed in advance.
MORE OR LESS OWNER'S Gives the option to the shipowner to increase or
OPTION 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 quot;All Risks.quot;
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
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 quot;deductionsquot; and
less quot;allowances for propelling machinery spacequot;
and is calculated in units of 100 cu.ft. (Net
tonnage is also referred as quot;registerquot; tonnage).
NON-DEMISE CHARTERS Time and voyage charters fall under this
category as opposed to demise and bareboat
NON-REVERSIBLE / Means notice by the master or his agent to the
NORMAL LAYTIME 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
ONCE ON DEMURRAGE Time on demurrage is continuous unless
ALWAYS ON DEMURRAGE 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
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 The ship is permitted to deviate without breaking
CLAUSE 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 This expression is more in charterer's favour
PER DAY or PER than quot;per hatch per dayquot;. The word quot;workingquot; or
WORKABLE HATCH PER quot;workablequot; hatch means that hatch can be worked
DAY 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
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
PHYTOSANITARY A certificate, issued by the US Department of
INSPECTION CERTIFICATE 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
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,
PROMPT SHIP Vessel that can be ready to load at short notice,
say within a few delay.
REACHABLE ON ARRIVAL The charterer undertakes that when the ship
or ALWAYS ACCESSIBLE 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 quot;days all
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 / Days which follow one immediately after the
CONSECUTIVE DAYS 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/
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 Person who negotiates the terms for the sale of
BROKER a ship on behalf of the buyer or seller.
SALT WATER ARRIVAL Vessel's draft on arrival in salt water where the
DRAFT 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
SEAFREIGHT Costs charged for transporting goods over the
sea. This does not cover any haulage or
loading/discharging costs but the sea transport
SEGREGATED BALLAST 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 A form required for all shipments by the US
DECLARATION Treasury Department and prepared by the shipper,
indicating the value, weight, destination, and
other basic information about an export shipment.
SHIPPER'S LOAD AND Note on bill of lading indication that the
COUNT contents of a container were loaded and counted
by the shipper and not checked or verified by the
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 Document issued on behalf of the Underwriter
INSURANCE stating the terms and conditions of the marine
insurance. Issued when evidence of insurance is
required, as by the bank issuing the Letter of
SPECIFIC GRAVITY Ratio of the weight of a liquid to its cubic
capacity. Also called quot;relative densityquot;. Water
has SG of 1.00 (1 cubic metre of water weighs 1
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
STANDARD A standard numerical code system developed by
INTERNATIONAL TRADE the United Nations to classify commodities used in
CLASSIFICATION (SITC) 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 A non-negotiable bill of lading in which the goods
LADING 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
SUBJECTS Means that the acceptance of the terms offered
by the other side is quot;conditionalquot; 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
SUNDAYS & HOLIDAYS Under this expression Sundays and holidays will
EXDEPTED / INCLUDED not count as laytime (excepted) /will count as
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
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
quot;arrival pilot stationquot; is favourable to the
TARE WEIGHT The weight of a container and packing materials
without the weight of the goods it contains.
TEN PERCENT BAGS FOR Some C/Ps stipulate that if a charterer loads in
SAFE STOWAGE 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 A single bill of lading converting both the
LADING 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
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 quot;hirequot; payments from the charterer,
usually so-much per day or pro-rata paid semi-
monthly or monthly in advance. Also called
TIME LOST WAITING FOR If the main reason why NOR can not be given is
BERTH TO COUNT AS that there is no loading/discharging berth
LOADING / DISCHARDING available to the ship the laytime will commence
TIME or AS LAYTIME 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 / The weight which must be added to, or taken
CENTIMETRE 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 quot;within
Institute Warranty Limitsquot;.
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
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
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 Tankers above 320,000 tonnes dwt.
UNLESS SOONER Time actually used before commencement of
COMMENCED 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
VERY LARGE CRUDE 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
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
WAREHOUSE RECEIPT A receipt supplied by a warehouseman for goods
he has placed in storage.
WAREHOUSE-TO- The clause in the Cargo Policy that defines when
WAREHOUSE CLAUSE coverage commences and terminates. It is the
intent of the policy to attach at the time the