Chartering Terms Abbreviations
AA – Always Accessible or Always Afloat – Term in charter party obliging the charterer to order the ship to a port or berth where she would not touch the bottom or perhaps be unavailable at any time due to tidal variations.
AAAA – Always accessible and always afloat.
AARA – Amsterdam-Antwerp-Rotterdam Area.
ABT – About – A conditional term used in qualifying cargo, time, bunkers or speed: It usually covers a margin of 5 % for cargo at owner’s option, usually 15 days for time, 5% latitude for bunkers and half a knot tolerance for speed.
A/C – Account – Term used when referring to a bank account and when allocating costs, such as in the phrase “for the a/c of charterers”.
A/E or ACC/EXC – Accept/Except – Used by either the shipowner’s broker or the charterer’s broker during chartering negotiations to signify that an offer or counter-offer is accepted apart from certain clauses or details which are listed together with the amendments sought.
ADD COM – Address Commission – Commission payable by the shipowner to the charterer to cover the charterer’s shipping department’s use of resources and for the latter to show income from activities.
Advance Freight – Freight payable at a time agreed by the shipowner and the shipper, before the goods are delivered at the place of destination in the contract of carriage.
AFSPS – Arrival First Sea Pilot Station – The term is used in time charterparties indicating that the ship is delivered from the shipowner to the time charterer the moment that she arrives at the first pilot station at the port of delivery.
AFT – At or towards the stern or rear of a ship
Affreightment – The hiring of a ship, the term may also sometimes be used to describe a contract for a series of voyages.
AG – Arabian Gulf (used when vessels are proceeding to Arabian ports).
AGW – All Going Well
Agency Clause – Clause in charterparty, which stipulates who nominates the ship’s agent at the loading and/or discharging ports.
Agency Fee – Fee payable by the shipowner or ship operator to a port agent, for the provision of port and ship related services at that port. ANTHAM – Antwerp-Hamburg Range
AP – All Purposes – Time allowed in a voyage charter for loading and discharging combined, expressed as a number of days and hours. “Approved” Charter – the expression used for charters – whether “agreed”, “adopted” or “recommended”.
APS – Arrival Pilot Station – Location often used as the place of delivery of a ship by the shipowner to the charterer at the commencement of a time charter. The hire charge commences from the time of arrival as long as it is within the laycan period.
ARA – Amsterdam-Rotterdam-Antwerp Range
ARAG – Amsterdam-Rotterdam-Antwerp-Ghent Range
Arbitration Clause – Clause in a charterparty, indicating that any dispute arising from the contract be resolved by arbitration and also indicates arbitration details.
Arrived Ship – In voyage charters the ship must have arrived before laytime can commence. Where the charterer has nominated a berth, the ship must have arrived at that berth. When a port is nominated, the ship must have arrived at the port. If unable to enter port a ship is considered arrived as long as it is within the legal, fiscal and geographical limits of the port such as the anchorage.
A/S – Alongside – berthed alongside the pier.
ASBA – Association of Ship Brokers and Agents (USA), Inc., New York.
ATS – All Time Saved: term used in a voyage charter party to define one method by which despatch money is calculated, that is, by deducting time used for loading and/or discharging, from a theoretical time up to the expiry of lay time which includes excepted periods.
ATDN – Any Time Day or Night – The term signifies that the ship-
owner may deliver the ship or that the charterer may redeliver the ship, at any time of the day or night and not necessarily during normal working hours. Often followed by SHINC (Sundays and holidays included).
ATDNSHINC – Any Time Day/Night Sundays and Holidays Included
ATUTC – Actual Times Used to Count
Average to Lay time – For a voyage charterer, to offset the time used in loading cargo against that used in discharging for the purpose of calculating demurrage or despatch.
Backfreight – Freight payable to a shipowner for the carriage of goods back to the port of loading or to another port when the vessel is unable to reach its destination because of an excepted peril or due to breach of the agreement by the consignee.
Bale/Bale Capacity – Total cubic capacity of a ship’s holds available for the carriage of cargo which is not capable of filling the spaces between the ship’s frames.
Baltic Mercantile & Shipping Exchange – Institution in London, also known as the Baltic Exchange whose main function is to provide facili- ties for the chartering of ships by its members principally charterers, shipbrokers, shipowners and agents.
Baltime – General Purpose Time Charterparty published by BIMCO.
BALLAST – Sea water necessary for the stability and safety of a ship when empty.
Bareboat Charter – The hiring of a ship for a period of time during which the shipowner provides the ship while the charterer provides the crew together with all stores and bunkers and pays all operating costs. Also referred to as a demise charter.
Barecon A’ – Standard bareboat charterparty published by BIMCO.
Barecon ‘B‘ – Standard bareboat charterparty used for newbuildings financed by mortgage, published by BIMCO.
BB – Ballast Bonus – Sum of money paid by a time charterer to a ship- owner to cover ballast voyage expenses
BBB – Before Breaking Bulk – A term of carriage that freight, or some percentage of it, becomes payable before breaking bulk (discharge of a vessel commences).
BDI – Both Dates Inclusive
Beam – The maximum breadth of a ship
Bends – Both Ends – At both loading and discharging ports. This term is often used together with GSAAAAB (Good Safe Always Afloat Always Accessible Berth), with OSP (One Safe Port), with OSB (One Safe Berth) and to qualify the prices of the bunkers on delivery and redelivery in a time charter. Also used to state agency determination (Charterer’s Agents Bends).
Berth Charterparty – Charterparty in which a particular berth is nominated by the charterer and laytime begins when in berth unless WIBON is agreed.
BI – Both Inclusive
BIMCO (The Baltic and International Maritime Council) – Association whose main object is to promote and defend the interests of shipowners and has contributed to the creation of a large number of charterparties and other shipping documents.
BIL – Bill of Lading – Document issued by a shipowner to a shipper of goods. It serves as a receipt for the goods, evidence of the contract of carriage and document of title.
Blt (Built) – Indicates when a ship was built (year).
BM (Beam) – The beam of a ship is its width at the widest point as measured at the ship’s nominal waterline.
BOB – Bunker on Board
Boffers or BO – Best Offers.
Both to Blame Collision Clause – Charterparty clause which stipulates that, in the event of a collision between two ships where both are at fault, the owners of the cargo must indemnify the carrying ship against any amount paid by the carrying ship to the non-carrying ship for damage to that cargo. Break bulk – Cargo lifted on and off ships one piece or bundle at a time by means of cranes or derricks, as opposed to cargo shipped on trailers or in TEU/FEU containers.
BROB – Bunkers Remaining on Board
Broken stowage – Unused space in a ship/ hold due to the irregular cargo shape.
Brokerage – Fee payable by a shipowner to a shipbroker for success- ful negotiation of a charter normally expressed as a percentage of the freight or hire and demurrage.
BSS – Basis
BSS 1/1 – Basis 1 port to 1 port (no combination of ports)
BT – Berth Terms – Expression signifying that the contract of carriage is subject to the customs and conditions of the ports of loading and discharging.
BUNKERS – Fuel Oil and Diesel Oil for the ships’ engines
BWAD – Brackish Water Arrival Draft
Cancellation (of a Charter) – If the ship misses the cancelling date in the laycan period the charterer is entitled to cancel the charter. Cancelling Clause – Clause specifying the last date known, as the canceling date, on which a ship must be available to the charterer at the agreed place. If the ship arrives after the cancelling date, the charterer may have the option to cancel the contract.
Canceling Date – (see also Laycan or Cancelling clause) Last date, agreed in a voyage or time charterparty, by which a ship must be available to the charterer at the agreed place at the commencement of the contract. If the ship is not available by that date, the charterer may have the option to cancel the charter.
Canal Transit Dues – Charge levied for canal transit by a canal author- ity (e.g. Suez or Panama) usually based on ship’s tonnage.
Cargoworthiness – Fitness of a ship to carry a particular cargo.
Cargoworthy – Said of a ship, being fit to carry a particular cargo.
Carrier – Party who enters into a contract of carriage with a shipper. The carrier may be the owner or charterer of a ship.
CBM – Cubic Meter
CBFT – Cubic Feet
Cesser Clause – Clause in a voyage charter which relieves the char- terer of all responsibility under the contract once the cargo has been shipped. It also incorporates a provision for the shipowner to have a lien on the cargo for freight, deadfreight and demurrage.
CFR – Cost and Freight – Sales term denoting that the seller is responsi- ble for arranging and paying for the carriage of the goods to the agreed port of discharge. Risk ofloss and damage generally passes to the buyer when the goods pass ship’s rail at the port ofloading.
Charter in (to) – To hire a ship from a shipowner. Charter out (to) – To hire a ship out to a charterer ..
Charterer – Individual or company who hires a ship from a shipowner for a period of time (see Time charterer) or who reserves the entire cargo space of a ship for the carriage of goods from a port or ports of loading to a port or ports of discharge (see Voyage charterer).
Charter – The chartering or hiring of a ship.
Charterer’s Market – Weak market, with comparatively low freight rates.
Charterer’s Agent – Ship’s agent nominated by the voyage charterer.
Chartering Agent – Shipbroker that acts on behalf of a charterer in the negotiations leading to the chartering of a ship.
Charterparty (CP) – A contractual agreement between a shipowner and a charterer stipulating all the terms and conditions for the hire of a ship or the space in a ship.
Charterparty Bill of Lading – Bill of Lading issued for a shipment of cargo on a chartered ship when it is intended that the receiver be bound by the terms and conditions of the charterparty.
Chopt – in Charterers’ Option – Term in a Charter-Party which stipulates that the charterers have a choice in specific circumstances like for example nomination of a discharge port.
CIF – Cost Insurance and Freight – Sales term denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge and for the insurance of the goods covering the period of carriage involved in the contract of sale. The risk of loss or damage passes to the buyer when the goods pass ship’s rail at the port of loading.
CIP – Freight or Carriage and Insurance Paid to – This term is the same as CPT but with the addition that the seller has to procure trans- port insurance against the risk of loss or damage to the goods during carriage. The seller contracts with the insurer and pays the insurance premium.
Clause Paramount – Clause which stipulates the rules governing the contract of carriage.
Claused Bill of Lading – Bill of Lading containing one, or more, superimposed clause which may either specify a defect to the cargo or its packing or any comment of the master regarding the carriage of the goods. Renders the B/L non-negotiable.
Clean Bill of Lading – Bill of Lading which contains no superimposed clause specifying any defect to the cargo or its packing; it indicates that the cargo has been shipped in apparent good order and condition. May be used by banks as collateral security against money advanced for the purchase of the goods described therein.
Clear Days – Used with a number to denote the period of time exclud- ing the first and the last days, for example ten clear days.
COA – Contract of Affreightment – A contract of affreightment is a contract between a shipowner and a charterer, in which the ship-owner agrees to carry a large volume of cargo over a specified relatively long period of time on a series of voyages using any ship in his fleet and remunerated by freight payments.
COB – Closing of Business
COD – Cash On Delivery
COGSA – Carriage of Goods by Sea Act – English statutory law of the rights and responsibilities between shippers and shipowners regarding ocean shipments.
Combined Transport Bill of Lading – Document evidencing a con- tract between shipper and a shipping line for carriage of goods on a voyage involving at least two legs, the issuer being responsible for the goods from the time they are received into his care until the time they are delivered at destination.
Competitive Broker – An independent broker that brings together an owner’s confidential broker with the broker of a suitable charterer.
Conbill-Bill of Lading by BIMCO used when no charterparty is Signed.
Constant – Refers to those items of a more or less permanent nature, such as crew and effects, stores, spare parts in excess of rule requirement which have not been included in the lightweight and therefore must be deduced from the deadweight when determining the dead- weight available for cargo.
Congenbill – Bill of Lading intended to be used with Gencon charter parties.
Conlinebill – Liner Bill of Lading published by the BIMCO. Consecutive Voyages – Often abbreviated to con sec. It refers to successive voyages of a chartered ship. The number of voyages or the total quantity of cargo to be carried or the total period during which the shipowner performs the maximum number of voyages must be stipulated in the contract.
Consignee – Person to whom goods are to be delivered by the carrier at the destination.
CONS – Consumption
COP – Custom of the Port – Established practice at a port, which be- comes part of a contract of carriage unless otherwise provided for in the contract. An example is the daily rate of loading and discharging.
Counter-offer or Counter – Offer and counteroffer form the basis of chartering negotiations. A counter offer is a response to an offer which varies the terms or conditions of that offer and hence cancels the provisions of an offer.
CPD – Charterers Pay Dues
CPT – Freight or Carriage Paid to – The seller pays the freight for the carriage of the goods to the named destination. The risk of loss and damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship’s rail. It can be used for all transport modes and multi modal operations.
CQD – Customary Quick Dispatch – A laytime related term denoting that the charterer must load and/or discharge as fast as is reasonably possible in the circumstances prevailing. There is no provision for demurrage or dispatch.
CR – Current Rate
CROB – Cargo Remaining on Board
CRN – Crane
Cst. – Centistokes – Measure of the viscosity of oils. The greater the number of centistokes, the higher the viscosity of a grade of oil
DAPS – Days all Purposes (Total days for loading & discharging)
D/A – Disbursements Account – Account for the sums paid out by a ship’s agent and owed by the shipowner for sums paid out in respect of the ship’s call at the port such as pilotage, towage, any cash advance to the master, supply of provisions and stores and the agency fee.
Damage for Detention – Sum of money payable to the shipowner by the voyage charterer for failing to load and/or discharge cargo within the time allowed if the charterparty has no provision for demurrage.
DDU – Delivered Duty unpaid. DDP – Delivered Duty Paid.
Deadfreight – Amount of money payable by a shipper or charterer to a shipowner for failing to load the quantity of cargo stipulated in the contract of carriage. It is normally payable at the full freight rate but may be reduced by the loading and/or discharging expenses if these were included in the freight.
Deadweight – DWT – A measure of how much weight a ship can safely carry. It is the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew to the point that its Plimsoll-line is at the point of submersion.
DET – Detention
Dely – Delivery (of a ship) – Placing of a time chartered ship by the shipowner at the disposal of the charterer at the beginning of the period of the charter, at the time and place agreed.
Dem – Demurrage – Amount of money paid (per day) to the shipowner by the charterer, shipper or receiver, as the case may be, for failing to complete loading and/or discharging within the time allowed in the Charter-Party. Once a ship is on demurrage, no deductions are made for the excepted periods, such as weekends, in the calculation of the demurrage charges; hence it is said that “once on demurrage, always on demurrage.”
Deck Cargo – Cargo carried on, and secured to, the open deck of a ship.
Demise Charter – See bareboat charter.
DEQ – Delivered Ex Quay – This mean that the seller makes the goods available to the buyer on the quay at the destination named in the sales contract.
DESP – Despatch or Despatch Money – Amount of money the rate of which is agreed in advance, payable by the shipowner to the charterer, shipper or receiver, as the case may be, for loading and/or discharging in less than the time allowed. If a relevant provision is made the rate is usually half the demurrage rate.
DES – Delivery Ex Ship – This mean that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contact. The seller has to bear the full cost and risk involved in bringing the goods there.
Deviation Clause – Clause allowing the shipowner to deviate from the agreed route to call at unscheduled ports for whatever reason, or to deviate to save life or property.
DHD – Demurrage Half Despatch – This term, used in voyage charter negotiations, signifies that despatch money is to be paid at half the daily rate of demurrage.
DHDATSBE – Despatch Half Demurrage on Actual Time Saved Both Ends
DHDWTSBE – Despatch Half Demurrage on Working Time Saved Both Ends
DISCH – Discharge
Dirty Bill of Lading – Bill of Lading containing one, or more than one superimposed clause specifying a defect to the cargo or packing, noted at the time the goods are received by the ship.
Disbursements – Sums payable by shipowners and paid out by a ship’s agent on their behalf at a port. They include port charges, pilotage, tow- age and the agent’s fee.
Disponent Owner – For instance a bareboat charterer who controls the commercial operation of a ship.
DLOSP – Dropping Last Outwards Sea Pilot
DNRSAOCLONL – Discountless and Non-Returnable Ship and/or Cargo Lost or Not Lost
DO – Diesel Oil
Dock Dues – Charge levied against a shipowner or ship operator by a port authority for the use of a dock.
DOP – Dropping Outward Pilot – Provision in a time charter to determine the time and place of redelivery of a ship to the owner by the charterer. The hire ceases at the moment the pilot disembarks.
DOLSP – Dropping Off Last Sea Pilot
DRAFT – Depth to which a ship is immersed in water. Depends on ship design and water density.
DRK – Derrick – A machine for hoisting and moving heavy objects
Dry Weight – Actual weight of a bulk cargo less an allowance for moisture content.
DTM – Delivery to Make. DTM Singapore, DTM Orinoco River, DTM ARAG
DUNNAGE – Materials of various types, often timber or matting, placed among the cargo for separation, for protection and ventilation
DWAT – Deadweight All Told – Deadweight
DWCC – Deadweight Cargo Capacity or Deadweight Carrying Capacity – Weight of cargo, which a ship is able to carry when immersed to the appropriate load line, expressed in tons.
Economic Speed – This is the speed of a vessel producing optimum financial results for the owners, giving proper consideration to the price of bunkers en-route, fuel consumption, the net freight per ton of cargo and operating profit per day.
EIU – Even if Used – Term used in a voyage charterparty which provides that time used to load or discharge, as the case may be, during excepted periods is not deducted from the time allowed even if used.
ETA – Estimated Time of Arrival.
ETC – Estimated Time of Completion.
ETD – Estimated Time of Departure.
ETR – Estimated Time of Readiness.
ETS – Estimated Time of Sailing.
EXW – Ex Works – Sales term denoting that the seller is responsible for making the goods available at his works or factory. The buyer assumes the cost of loading the goods onto the vehicle(s) and delivering them to the destination and the risk of loss and damage.
Excepted Period – Period during which any time used to load or discharge does not count for the purpose of calculating demurrage or despatch, other than by prior agreement (see Unless used). Such periods may include weekends; public holidays and time used shifting from anchorage to berth. Once laytime has expired, time counts during excepted periods in the calculation of demurrage.
Exceptions Clause – Clause that exonerates the ship from responsibility for damage to cargo from certain named causes such as an act of God or negligence of the master.
Expiry of Lay time – Moment when the time allowed in the charter-party for loading and/ or discharging, as the case may be, has been used up.
Extension of a Charter – Prolonging of the period during which a ship is on time charter, very often on the same terms but possibly at a different rate of hire.
Extension to the Canceling Date – Agreement by the charterer to a later date than that agreed in the charterparty by which a ship must tender notice of readiness to the charterer that she has arrived and is ready to load. If not accepted, the charterer may have the option to cancel the charter.
FAS – Free Alongside Ship. Seller delivers goods to appropriate dock or terminal at port of embarkation and buyer covers costs and risks of loading.
FAC – Fast as Can – The shipper must supply the cargo as fast as the ship can load or that the receiver must take delivery as fast as the ship can discharge.
FACCOP – Fast as Can Custom of the Port
FAK – Freight All Kinds – Single freight rate which is charged irrespective of the commodity.
FIC – Full and Complete Cargo – Concerns a full cargo, which will either bring the vessel down to her maximum permissible draft or fill the vessel by volume.
FCC – First Class Charterers – denotes a reputable chartering company
FCL – Full Container Load – Quantity of cargo, which fills a shipping container to capacity, either by weight or cubic measurement.
FD – Free Despatch – Term in a voyage charterparty that despatch money is not payable when cargo operations have been completed ear- lier than the time allowed.
FDD – Freight Demurrage Deadfreight
FDEDANRSAOCLONL – Freight Deemed Earned Discountless and Non-Refundable Ship and/or Cargo Lost Or Not Lost
FDIS – Free Discharge
FEU – Forty Foot Equivalent Unit – Unit of measurement equivalent to one 40-foot container.
FHEX – Fridays and Holidays Excepted – Fridays and holidays do not count in the calculation of laytime (applies to those countries where Friday is the Sabbath).
FHINC – Fridays, Holidays Included (Muslim Countries)
FI – Free In – Free of expense to the shipowner of cargo handling at the loading port.
FIO – Free In and Out – Term qualifying a freight rate which signifies that it excludes the cost of loading and discharging and if appropriate to the type of cargo, stowing, dunnaging, lashing and securing or trimming’ all of which are paid by the charterer.
FILO – Free In/Liner Out. Term whereby the shipper pays load costs and the carrier pays for discharge costs.
FIOS – Free In and Out and Stowed – Loading, unloading and stowage cost is not for the account of the shipowner (free) but payable by the charterer or the shipper.
FIOSLSD – Free In/Out Stowed, Lashed, Secured and Dunnaged for charterers account.
FIOST – Free In/Out Stowed and Trimmed. Charterer pays for cost of loading/discharging cargo, including stowage and trimming.
FIOT – Free In and Out and Trimmed – Charterer pays for cost of loading/discharging cargo, including trimming.
First Class Ship – Ship to which the highest class has been given by a classification society in accordance with its rules concerning construction and maintenance.
FIT – Free In Trimmed
FIW – Free In Wagon
FIXING – Chartering a Vessel
Fix (to) – The agreement to charter a ship following completion of the negotiations.
Fix Best Possible – The broker is given leeway to negotiate the charterparty if terms of original instructions cannot be met in the market.
Fixed on Subjects – All the terms and conditions of chartering have been agreed except for a few, normally minor, details.
Fixed Operating Expense – The daily or monthly costs of operating a vessel, which may include amortization and interest, but does not include fuel or any other variable costs.
Fixture – Successful conclusion of the negotiations between shipowner and charterer, generally through shipbrokers, resulting in the charter of a ship.
FO (IFO) – Fuel Oil/Intermediate FO
FOB – 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
FOFFER (Firm Offer) – An unconditional offer that is binding on the
party making it, provided that it is accepted in full and within any time limit set.
FOQ – Free On Quay
FORCE MAJEURE – Clause limiting responsibilities of the charterers, shippers and receivers due to events beyond their control.
FO – Free Out – Qualification to a freight rate denoting that the cost of discharging of the cargo from the ship’s hold is not included in the freight but is payable by the charterer.
FOB – Free on Board – Sales term denoting that the seller is responsible for delivering the goods to the port of loading agreed in the contract and for loading them on to the ship nominated by the buyer. The risk of loss or damage to the goods generally passes from the seller to the buyer when the goods pass ship’s rail at the port of loading.
FOG – For Our Guidance
FOR – Free On Rail
Forwarding Agent or Forwarder – Person or company who arranges the carriage of goods on behalf of a shipper.
FOQ– Free On Quay
FOT – Free On Truck
FOW -Free On Wharf
Free Time – Period between the time a ship is ready to load or discharge, having given notice of readiness, and the time that lay time commences in accordance with the charterparty, during which the charterer is not obliged to load or discharge. The charter party must make provision as to whether lay time shall count during this period.
Freight Collect – Freight payable at destination, also referred to as freight forward.
Freight Payable at Destination – Method of paying the freight often used for shipments of bulk cargoes whose weight is established on dis- charge from the ship.
Freight Prepaid – Freight which is payable before the contract has been performed.
Freight Rate – Amount of money paid to a shipowner or shipping line for the carriage of each unit of cargo.
Freight Tariff – Schedule, published by a liner conference or shipping line, containing freight rates for a variety of commodities likely to he carried by the lines.
Freight Ton – Unit of cargo on which a freight rate is based, generally one ton or one cubic meter whichever is greater. Also called revenue ton.
FRT – Freight – Amount of money paid by a shipowner or shipping line for the carriage of cargo usually referring to a voyage charter.
Full Liner Terms – FLT – Shipowner pays to load and discharge the cargo
FWAD – Fresh Water Arrival Draft
FWDD – Fresh Water Departure Draft
FYG – For Your Guidance
Gencon – General purpose voyage charterparty published by BIMCO
General Average Clause – Clause that states the rules for adjusting General Average (York-Antwerp Rules).
Gless – GLS – Gearless Ship – Ship which is not equipped with her own cranes or derricks
GNCN – General Conditions
GN – Grain
GO – Gas Oil
GRD – Geared
GSB – Guaranteed Safe Berth
GSA – Goods Safe Anchorage
GSP – Good Safe Port
GT (Gross Tonnage) – a ship’s total internal volume expressed in “tons”, one of which equals a volume of 100 cubic feet (2.83 m ‘). It is calculated from the total permanently enclosed capacity of the vessel.
GA – General Average – The reimbursement of loss, suffered by a party as a result of an intentional act or sacrifice that was carried out during a voyage to preserve the venture from a real danger. All the other parties to the marine adventure are obliged to pay a pro- portion of the amount of the loss according to the value of their interest.
Grain/Grain Capacity – Cubic capacity of a ship’s holds available for
the carriage of grain or any other free-flowing bulk cargo capable of filling the space between the ship’s frames, expressed in cubic feet or cubic meters. See also Bale Capacity.
Gross Terms – A voyage charter where the shipowner pays for loading and discharging.
GRTEE – Guarantee
2H – Second Half
HA – Hatch – The opening on the deck of a ship that provides access to the hold.
Hague Rules – Rules governing the carriage of goods by sea and identifying the rights and responsibilities of carriers and owners of cargo. Hague-Visby Rules – Rules amending the Hague Rules
Half Hire – Provision in a time charterparty that half of daily hire is payable under certain circumstances (e.g. half hire to be paid from the moment the ship has been lost at sea until date of expected arrival).
Hamburg Rules – Rules governing the rights and responsibilities of carrier and cargo interests which may be incorporated into a contract for the carriage of goods by sea.
HDLTSBENDS – Half Dispatch Lay Time Saved Both Ends
HDWTS – Half Dispatch Working Time Saved
Head Charter – Term used to distinguish the contract for the charter of a ship between the owner and a charterer and the one for sub-letting the ship by the charterer.
Hire or Hire Money – Money paid by a charterer to a shipowner for the hire of a ship taken on time charter. It may be expressed, for example, as an amount per day.
Hire Statement – Written statement of the amount of hire money pay- able by a time charterer to a shipowner, showing the duration of the charter. Deductions may be made for port disbursements and cash advancements, domestic bunkers, commissions/brokerages and off-hire events. The first and last statements detail the quantity of bunkers remaining on board at delivery and redelivery.
Ho. – Hold – Space below the deck of a ship, used for carrying cargo numbered consecutively starting with the forward-most.
HMS – Heavy Metal Scrap
Ice Clause – Clause whereby a master may have the right to divert the ship to the nearest safe port to discharge cargo destined for an ice- bound port. Equally, a charterer may have the option of keeping a ship waiting for ice conditions to clear on payment of demurrage.
IMDG – International Maritime Dangerous Goods Code
IMO – International Maritime Organization
Incoterms – Rules governing the interpretation of terms used in inter- national trade, published by the International Chamber of Commerce.
IND – Indication
Inherent vice – Any existing defects, diseases, decay or the inherent nature of the commodity that will cause it to deteriorate with time.
Interim Voyage – Voyage undertaken by a ship between the times she is chartered for a specific voyage and the time she performs it.
IU – If Used
IUATUTC – If Used, Actual Time Used To Count
IUHTAUTC – If Used, Half Time Actually Used to Count
IWL (Institute Warranty Limits) – Map indicating safe trading limits for ships. No additional insurance premiums are levied when navigating within IWL.
Jettison Clause – Clause indicating the circumstances under which a master is entitled to jettison goods from a ship.
Joint Survey – Inspection carried out by a surveyor on behalf of two parties, the cost generally being borne by both.
Jurisdiction Clause – A clause that specifies the country which has jurisdiction for administering justice if there is a breach of contract.
KT – Knot
LASH – To hold goods in position by use of ropes, wires, chains or straps etc.Laycan or L/C – Laydays Canceling – Period denoted by two dates (e.g. March 2 and March 8) during which the shipowner must tender notice of readiness to the charterer that the ship has arrived at the port of loading and is ready to load. The charterer is not obliged to commence loading until the first of these dates if the ship arrives earlier and may have the option of canceling the charter if the ship arrives after the second of the dates, known as canceling date.
Laydays – Days allowed by the shipowner to the voyage charterer or Bill of Lading holder in which to load and / or discharge the cargo. See also Laytime.
Lay time Saved – Charterparty term used to define one method by which despatch money is calculated, that is, by deducting laytime used from lay time allowed. Also referred to as working time saved.
Lay time Statement – Portion of a time sheet, which details the amount of lay time used by a voyage charterer.
Lay time – Time allowed by the shipowner to the voyage charterer or Bill of Lading holder in which to load and I or discharge the cargo. It is expressed as a number of days or hours or as a number or tons per day. There is normally a provision in the charterparty for the commencement of laytime, which is often at a certain hour after notice of readiness has been tendered by the master, a provision for periods when laytime does not count, for instance during bad weather, weekends or holidays or a provision for lay time being exceeded, when demurrage or damages for detention become payable, or not being fully used, when dispatch may be payable.
LC – Letter of Credit.
Letter of Indemnity (LOI) – Written statement in which a bank undertakes to compensate the shipowner for the consequences of instructing the shipowner to deliver the cargo to a non-holder of the original Bill of Lading (B/L).
Lien Clause – Clause in a voyage charteparty which entitles the shipowner to exercise a lien on the cargo, that is, to retain control of the cargo until any freight, deadfreight or demurrage which is owed is paid.
LIFO – Liner In Free Out – Qualification to freight rate denoting that it is inclusive of the sea carriage and the cost of loading. It excludes the cost of discharging.
Lighter Aboard Ship (LASH) – a vessel that loads small barges direct from the water
Liner Bill of Lading – Bill of Lading containing the terms and conditions of carriage of a shipping line.
Liner Waybill – Document, issued by a shipping line to a shipper, which
serves as a receipt for the goods and evidence of the contract of carriage but is not a document of title. Also referred to as a sea waybill or an Ocean Waybill or Waybill.
Linertime – A BIMCO deep sea time charterparty for liner operation.
LOA – Length Overall of the Vessel
LONL – Lost or Not Lost – Term which may be used in contracts of carriage in which the freight is prepaid: often, freight is not returnable whether the ship and/or the cargo are lost or not once having commenced the voyage.
LS (or LUMPS) – Lumpsum
LSD – Lashed Secured Dunnaged
Loose – Said of a consignment, which consists of single pieces not bundled together.
LT – Liner Terms
Lump Sum Charter – Voyage charter for which the freight is payable as a lump sum rather than per ton or other unit of cargo.
LYCN – Laycan (Layday Cancelling Date). The range of dates during which a ship will load.
MDO (DO) – Marine Diesel Oil
Min/Max – Minimum/Maximum – When qualifying the contractual quantity in a voyage charter, this term signifies that the freight is pay- able on that precise quantity, no more and no less.
MOL – More or Less.
MOLCHOPT – More or Less in Charterer’s Option – Option allowed to a voyage charterer to load up to a certain quantity, normally ex- pressed as a percentage or a number of tons, over or under a quantity specified in the contract of carriage.
MOLOO – More or Less in Owner’s Option – Option allowed to a shipowner to carry up to a certain quantity, normally expressed as a percentage or number of tons, over or under a quantity specified in the voyage charter. This option may be sought if the shipowner is not certain what the ship’s cargo capacity will be, taking into consideration bunkers, stores and fresh water, or if he wants flexibility to adjust the ship’s trim.
M/R – Mate’s Receipt – Receipt made out by the first officer, stating the quantity and condition of the goods loaded on board the ship. This document is given to the shipper and later exchanged for the Bill of Lading.
MT – Metric ton – 1,000 kilograms.
M/V – Motor Vessel
NAABSA – Not Always Afloat But Safely Aground – Provision in a charterparty that the charterer has the right to order the ship to a port where she may touch the bottom in safety.
Negligence Clause – Clause to relieve the shipowner of liability for losses caused by the negligence of his servants or agents.
New Jason Clause – Protective clause which provides that the shipowner is entitled to recover in General Average even when the loss is caused by negligent navigation.
Nomination – Designation of a specific ship for a particular voyage by a shipowner.
Non-Negotiable Bill of Lading – Bill of Lading which is not a Signed, original Bill of Lading and therefore cannot be used to transfer title in the goods.
Non-Reversible Lay time – Time allowed to the charterer for loading is to be treated separately from the time allowed for discharging for the purpose of calculating demurrage or dispatch.
NOR – Notice of Readiness – Clause in a voyage charter that the shipowner or master must advise the charterer when the ship has arrived and is ready to load or discharge for laytime to start counting.
NOS – Not Otherwise Specified
Notice of Redelivery – Written notice given by the time charterer to the shipowner giving the date when the ship is to be returned to the shipowner at the end of the period of the charter. Charterparties may stipulate that several such notices be given at agreed intervals as the date of redelivery approaches.
NRT – Net Registered Tonnage
NT (Net Tonnage) – The total of all enclosed spaces within a ship avail- able for cargo expressed in tons each of which is equivalent to one hundred cubic feet.
NYPE – New York Produce Exchange – standard Time Charterparty form
Off Hire – When charterer is deprived of the use of a ship through no fault of his own (breakdown, dry docking, deviation to collect spare parts etc) hire money temporarily ceases to be paid.
Off Hire Survey – Inspection carried out at the time a ship is redelivered by a time charterer to a shipowner at the end of the period of the charter to determine whether the ship is in the same condition, wear and tear excepted as on delivery. The quantity of bunkers is also ascertained
OO – In Owner’s Option – A term giving a choice to the shipowner, like for instance, the owner may have the option of specifying the exact quantity of cargo to be loaded.
Open – A ship that is available from a specified date at a particular place to sail to another port to load her next cargo.
Orders – Instructions given by the shipowner or ship operator to the master of a ship concerning the next voyage.
OSB – One Safe Berth
OSH – Open Shelter Deck
OSP – One Safe Port
OT – Overtime.
Overlap – The period of time during which a charterer retains a vessel beyond the stated period of the time charter.
Owners Agents – Ship’s agent nominated by, and paid by the shipowner.
Owners Broker – Shipbroker who acts on behalf of a shipowner in the negotiations leading to the chartering out of the owner’s ship.
OWS – Owners
Paramount Clause – Clause in a Bill of Lading or charterparty which stipulates that the contract of carriage is governed by the Hague Rules or the Hague-Visby Rules ..
Part Cargo – Goods which do not represent the entire cargo for a particular ship but whose quantity is sufficient to be carried on the charter terms.
Part Charter – The chartering of a ship to carry a quantity of goods, which represents only a part of the cargo.
PC – Period of Charter
PCGO – Part Cargo
PCT – Percent
PDPR – Per Day Pro rata
PERDIEM – Per Diem – By the Day
Performance Claim – Claim made by the time charterer against a ship- owner when the ship has been unable to achieve the speed agreed in the charterparty or has consumed too much fuel or both.
Performance Clause – Clause in a time charterparty which stipulates that, should the ship be unable to achieve the agreed speed or should she consume too much fuel, the charterer is entitled to recover from the shipowner the cost of time lost and extra fuel, normally by means of a deduction from hire money.
PFT – Per Freight Ton – see freight ton.
PHPD – Per Hatch Per Day
Port Dues – Charge levied against a shipowner by a port authority for the use of the port.
Post Fixture – After the contract for the charter of a ship has been
agreed. Said of work carried out by a shipowner, charterer or shipbroker, including payment of hire or freight, calculation of dispatch or demurrage and the resolution of any disputes.
PRATIQUE – License or permission by the local health authorities to use a port
Preamble – First few lines of a charterparty in which the main points to the contract and the ship are identified.
Private Form – Standard charterparty devised and used by a particular company.
Pro Forma Disbursements Account – Statement sent by a ship’s agent at a port to the shipowner in advance of the ship’s call at the port. It consists of the expenses that are likely to be incurred, including port charges, pilotage, towage and the agent’s commission.
Protecting Agent – Agent appointed by the owners or charterers to protect their interest and to supervise the work carried out by the ship’s agent.
Protecting Clauses – Clauses in a charterparty which provide contingencies for unforeseen situations, such as ice, strikes, general average or collision.
Purposes – Time allowed in a voyage charterparty for loading and dis- charging combined, expressed as a number of days or hours. Also referred to as all purposes.
PWWD – Per Weather Working day
Rate of Demurrage – Amount payable by a voyage charterer to a ship- owner for each day used to load and/or discharge cargo in excess of the time allowed.
Rate of Discharging / Loading – Number of tons of cargo discharged/loaded each day from / into a ship.
Receiver (RCVR) – Party who receives the cargo at the place of destination.
Redly – Redelivery – Return of a ship by the time charter to the ship- owner at the end of the period of the charter.
Redelivery Certificate – Document Signed by or on behalf of the ship- owner and the charterer, certifying the time, date and place of redelivery of the ship, the certificate also states the quantity of bunkers on- board at the time redelivery.
Release a Bill of Lading (to) – To provide the shipper with an original Bill of Lading, often in exchange for the freight.
Reversible Lay time – Term used in a Voyage Charterparty to signify that the time allowed for loading may at the charterers option, be added to the time allowed for discharging for the purpose of calculating demurrage or dispatch.
ROB – Remaining on Board
Round Voyage – Voyage involving two legs the second of which brings the ship back to the geographical area where the first leg commenced.
Running Days – Consecutive days of 24 hours including weekends and holidays.
SB (Safe Berth) -It is the responsibility of the charterer to nominate a berth which is physically safe for the ship to load and discharge.
SD – Single deck ship.
Sea Waybill – See liner waybill
Seaworthiness – Ship is appraised as fit to receive and carry cargo and to sail. Fitness parameters include sufficient crew, stores, fuel, and the condition of machinery and equipment.
SELFD – Self Discharging
SF (Stowage Factor) – It indicates how many cubic metres of space one metric tonne (or cubic feet of space one long ton) of a particular type of cargo occupies in a hold of a cargo ship.
SHEX – Sundays and Holidays Excepted – Charterparty term which provides that Sundays and public holidays do not count in the calculation of laytime.
SHINC – Sundays and Holidays Included – Charterparty term, which provides that Sundays and public holidays count in the calculation of laytime, whether or not used for loading or discharging, as the case maybe.
Shipbroker – Person having one or several occupations: chartering agent or owner’s broker, negotiating the terms for the charter of a ship on behalf of a charterer or shipowner respectively, sale and purchase broker, negotiating on behalf of a buyer or seller of a ship: ship’s agent, attending to the requirements of a ship, her master and crew when in port on behalf of the shipowner, loading broker, whose business is to attract cargoes to the ships of his principal.
Shipper – Person or company who enters into a contract with a liner conference, shipping line or shipowner for the carriage of goods.
Ship’s Agent – Person who looks after the interests of a ship while she is in port. His duties include the arranging of pilotage, towage and a berth for the ship, the signing of bills of lading and the collection of freight. The agent is paid a fee, agreed in advance with the shipowner.
SP (Safe Port) – It is the responsibility of the charterer to nominate a port that is meteorologically, economically and politically safe for her to reach, remain and leave, taking into consideration the cargo to be loaded or discharged.
SRBL – Signing and Releasing Bill of Lading
SSHEX (Saturdays, Sundays and Holidays Excepted) – Saturdays. Sundays and public holidays do not count in the calculation of laytime.
SSHINC (Saturdays, Sundays and Holidays Included) – Sundays and public holidays count in the calculation of laytime.
STARBOARD – Right side of a ship when facing the bow
Statement of Facts (SOF)– Statement, prepared by the ship’s agent at the load- ing and discharging ports, which shows the date and times of arrival of the ship and the commencement and completion of loading and discharging. It details the quantity of cargo loaded or discharged each day, the hours worked and the hours stopped with the reasons for the stop- pages, such as bad weather, a strike or breakdown of equipment.
Stem (Subject to Enough Merchandise) – Availability of a cargo on the date or dates on which a ship is offering to load.
STEM – Subject To Enough Merchandise (Availability of Cargo)
STERN – The aft part of a ship
Strike Clause – Clause that sets out the options available to the parties to the contract of carriage in the event that a strike prevents or interrupts the loading or discharging of the cargo. In the case of a charter, the clause may contain a provision for the effect of a strike on laytime.
SUB – Subject (to)
Sub. Details – Subject Details – Term qualifying an offer or counter- offer for the charter of a ship which demotes that only minor details remain to be agreed. The conclusion of a contract is conditional on these details.
Sub. Free – Subject Free – Term used in an offer made by a shipowner to signify that the acceptance of that offer will only result in a contract if one has not been concluded in the meantime with a third party.
Sub. Open – Subject Open
Sub. Unfixed – Subject Unfixed
Sub-Charterer – Person or company who charters a ship for a party, who is not the owner but who, in turn, has chartered the ship.
Sub-Freight – Freight payable by the sub-charterer, normally to the charterer.
Subject Stem – Subject to the availability of the cargo on the dates on which a ship is offering to load.
Sub-Let – The charter of a ship to one party by another party who is not the owner but who, in turn. has the charter of the ship.
Substitution – The replacement of a ship with another ship.
SUB – Subject (to)
SUPERCARGO – Person employed by a ship owner, shipping company, charterer of a ship or shipper of goods to supervise cargo handling operations.
S & P – Sale and Purchase Broker – Person who negotiates the terms for the sale of a ship on behalf of the buyer or seller.
SWAD – Salt Water Arrival Draft
SWDD – Salt Water Departure Draft
SWL – Safe Working Load – Maximum load which can safely be borne by cargo handling equipment.
TA Round – Transatlantic Round Voyage.
Tariff – Schedule of charges such as the freight tariff of a shipping line.
TBA – To Be Advised.
TBN – To Be Nominated – Said in respect of a voyage for which a specific ship has yet to be designated by the shipowner.
TBMA – To Be Mutually Agreed
TEU – Twenty Foot Equivalent Unit – Unit of measurement equivalent to one 20 foot shipping container. Also used to quantify the container capacity/size of a ship.
Through Bill of Lading – Bill of Lading issued by a shipping line for a voyage requiring on-carriage, thus involving at least one transshipment.
Time Charter (TC) – The hiring of a ship from a shipowner for a period of time. Under this type of contract, the shipowner places his ship, with crew and equipment, at the disposal of the charterer, for which the charterer pays hire money. The charterer decides the type and quantity of cargo to be carried and the ports of loading and discharging and pays for all voyage related expenses (bunkers, cargo handling, port charges and services). The technical operation and navigation of the ship remain the responsibility of the shipowner.
Time Charterer – A person or company who hires a ship for a period of time.
Time Charterparty – A document containing the terms and conditions of a contract between a charterer and a shipowner for the hire of a ship for a period of time.
Time Lost Waiting for Berth to Count – A term indicating that laytime starts from the time the notice of readiness is given by the master, even though the vessel is held up because no berth is available.
Time Reversible – Overall calculations of laydays, in loading and discharging in a voyage charterparty.
Time Sheet – Statement, drawn up by the ship’s agent at the loading and discharging ports, which details the time worked in loading or discharging the cargo together with the amount of lay time used. Demurrage or dispatch, may be calculated.
Time to Begin on Arrival – Laytime is to count immediately on arrival at the port of loading or discharging irrespective whether a berth is available or not.
Ton Mile – Unit cargo ton/distance carried and covered.
TM – To Make
TPC – Tons per Centimeter – A quantity, for example of cargo or fuel, needed to immerse a ship one further centimeter.
TPD – Tons per Day – The quantity of cargo loaded or discharged each day.
TTL – Total
Turnaround Time – Time between a ship arriving in port and sailing.
Turn Time (TT) – Time during which a ship waits for a berth.
TW – Tween Decker
UBC – Universal bulk carrier.
UCE – Unforeseen circumstances excepted including MEBD (Main Engine Breakdown).
UCS – Unless Commenced Sooner
Unclean Bill of Lading – Dirty Bill of Lading.
UU – Unless Used – Charterparty term which provides that a proportion normally all or half, of time used to load or discharge, as the case may be, during excepted periods counts for the purpose of calculating total time used.
UUIUATUTC – Unless Used If Used Actual Time Used To Count
VC – Voyage Charter – Contract of carriage in which the charterer pays for the use of a ship’s cargo space for one, or sometimes more than one, voyage.
VPD – Vessel Pays Dues
War Clause – Clause giving the right to a ship’s master not to put his ship or crew at risk.
WCCON – Whether Customs Cleared Or Not
WIBON – Whether in Berth or Not – Provision in a voyage charter that, once the ship has arrived at the port and tendered notice of readiness, if required, laytime will start to count in accordance with the charterparty whether or not the ship has reached the berth.
WIFPON – Whether In Free Pratique or Not
Withdrawal – To remove control of a ship from the time charterer for the remaining period of the charter when there has been serious breach of contract, such as failure to pay hire.
WLTHC – Water Line To Top of Hatch Coaming
WOG – Without Guarantee
Workable Crane – Term in a voyage charger which determines the number of days allowed for loading and I or discharging by the number of cranes available for use by the charterers for operations. Generally expressed in tons per workable crane per day.
Workable Hatch – Term in a voyage charter which determines the number of days allowed for loading and/or discharging by dividing the quantity of cargo in the largest hatch by the quantity per workable hatch per day as stipulated in the charterparty.
Working Day of 24 Consecutive Hours – Working day equates to one layday.
Working Day of 24 Hours – Period of time which contains 24 normal working hours. If it is the custom of a port that eight hours represents the normal working time per day, then a working day of 24 hours would be considered as three laydays.
Working Day – When normal working is carried out in a port.
WP – Weather Permitting – Laytime does not count when weather conditions do not allow loading or discharging operations to be carried out.
WTS – Working Time Saved
WWD – Weather Working Day – Days on which work is normally carried out at a port which counts as lay time unless loading or discharging would have ceased because of bad weather.
WWR – When Where Ready – Frequently used provision in a time charter to determine the time and place of delivery! redelivery of a ship by the charterer to the shipowner. This term is qualified in such a way as to make the time and place unambiguous. such as on completion of discharge at a named port, abbreviated to WWRCD followed by the name of the port.
WWRCD – When Where Ready on Completion of Discharge
WWR – When Where Ready
WWWW – WIBON, WCCON, WIFPON, WIPON
YAR – York Antwerp Rules
Voyage Charterparty – Document containing the terms and conditions of a voyage charter.
Voyage Estimate – Calculation of the financial viability of a prospective voyage.