Any agreement to purchase goods under specified terms. An
agreement to purchase goods at a state price and under stated terms.
ACT OF GOD
It is a natural event, not preventable by any human
agency, such as flood, storms, or lightning. Forces of nature that a carrier
has no control over, and therefore cannot be held accountable.
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.
Commission payable to the charterer by the shipowner as a
percentage of freight or hire. Historically it was paid to the charterer to
cover up some of the expenses incurred by him. At present it virtually works out to a reduction in the
Partial payment of the bill of lading freight in advance;
in other respects is the same as guaranteed freight. In other words, freight
payable before goods are accepted for shipment. Once paid it can not be
recovered from the shipowner upon frustration on voyage and loss of goods.
Tanker of maximum 79,999 dwt on the AFRA freight rate
The hiring of a ship in whole or part
This term has various meanings the most common being: The
maximum height from the water line to the top-most point of a ship.
A bill of lading that covers both domestic and international flights transporting
goods to a specified destination. This is a non-negotiable instrument of air
transport that serves as a receipt for the shipper, indicating that the carrier
has accepted the goods listed and obligates itself to carry the consignment to
the airport of destination according to specified conditions.
The broadest form of coverage available, providing
protection against all risks of physical loss or damage from any external cause. Does not
cover loss or damage due to delay, inherent vice, preshipment condition,
inadequate packaging, or loss of market.
ALL TIME SAVED
Means that the time saved to a ship from the completion of loading/discharging to the
expiry of laytime including periods excepted from laytime.
ALL WORKING TIME SAVED or ALL LAYTIME SAVED
Both these terms mean the same. Here the description of
the time means that time saved to the owner from the completion of the loading
and/or discharging until the expiry of the allowed laytime excluding and notice
time and periods which are exceptions to laytime.
A phrase referring to the side of a ship.
Iron ore being a very heavy cargo is loaded in alternate holds, leaving remaining holds
ALWAYS AFLOAT or ALWAYS SAFELY AFLOAT
This clause is inserted in a C/P to prevent a vessel from
being ordered to proceed to a berth where she touches
the ground during loading of discharging or which can only be reached after
lighterage of part of her cargo or which can only be reached during high tide.
A charterparty which has been agreed upon, adopted or
recommended by BIMCO, G.C.B.S., etc.
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 "taking inward pilot" which favours the charterer).
A vessel is an arrived ship and the laytime allowed under
the C/P begins to count as soon as the
following conditions have been complied with: 1) The vessel must have arrived
at the port, berth or dock as stated in the C/P. 2) The vessel must be ready to
load or discharge in every way. 3) A notice of readiness must have been given
in writing to the charterers or shippers/consignees.
AS FAST AS THE VESSEL CAN RECEIVE/DELIVER
Means that the laytime is calculated by reference to the
maximum rat at which the ship in full working order is capable of loading or
discharging the cargo, that is, as fast as she can or with customary (quick)
dispatch. The term appears in a C/P when laytime is not fixed (indefinite) and
is left to the custom of the port.
AUSTALIAN HOLD LADDERS
All vessels trading with Australia must be provided with
ladders acceptable to waterside workers' federation/ unions in that country.
These ladders are so constructed as to prevent fatigue due to platforms at
regular intervals. Vessels without such type of ladders can be penalized or
Any loss or damage due to insured perils that is less
than a total loss. Two types of average occur: Particular Average and General
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
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.
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
Heavy weight, often sea water, necessary for the
stability and safety of a ship which is not carrying cargo.
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.
This relates to the maximum draft enabling a vessel to
pass over a bar, e.g., Martin Garcia bar in the River Plate. In case the vessel
has too great a draft, it will have to discharge part of the cargo into barges
and then reload it after passing the bar. A similar situation exists at Yangon
(formerly Rangoon). Such ports are called bar-ports.
BAREBOAT /DEMISE CHARTER
Lease of a ship wherein the charterer takes over the ship
together with the rigid of management and control. In fact the becomes the
virtual owner of the vessel during the term of the charter. Charter has the
right to engage and pay the master and crew who are his employees. The
shipowner merely receives compensation as hire payments.
A scale of wind force expressed from 0 to 12 in which
weather conditions represent with conditions expressed in numerals, where 0
means calm wind (less that I knot speed) and 12 refers to hurricane (speed
between 64 to 71 knots). This term is used mostly in time charterparties, as
vessels are not penalised for non-performance of speed in case wind speed is more
than the agreed Beaufort number.
BEFORE BREAKING BULK
Refers to the time when freight is paid. In this case
freight is to be paid any time before commencement of discharge.
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
The person in whose favor a draft is issued or a letter
of credit opened.
The specific place where ships are anchored for loading
and/or discharging at the docks in a port.
If a vessel chartered for loading on a particular berth,
the contract is called berth charter. The term berth charter implies that
notice of readiness cannot be given until the vessel is in the designated berth
as required by the charterers.
Also referred to as "liner terms". The
Shipowner pays for loading and discharging subject to the custom of the port or
as fast as the ship can handle the cargo or under customary dispatch.
BILL OF LADING
The document issued on behalf of the carrier describing
the kind and quantity of goods being shipped, the shipper, the consignee, the
ports of loading and discharge and the carrying vessel. It serves as a document
of title, a contract of carriage, and a receipt for goods.
List of countries published by a government which will
not allow ships to trade at its ports if they have traded at ports in the
countries on that list.
A building authorized by Customs authorities for storage
of goods on which payment of duties is deferred until the goods are removed.
The term means that the arrangements agreed upon hold
true both at loading and discharging ports, e.g., rate of loading and
discharging; appointment of agents, etc.
BRACKISH WATER ARRIVAL DRAFT
Brackish is spoken of water in a river when partly salt
and partly fresh. It has a density between that of fresh water (1000 kgs/cubic
metre) and that of salt water (1025 kgs/cubic metre). When a ship proceeds to a
brackish water port, the ship's draft will be more than the draft in salt water
and less than the draft in fresh water.
Loose cargo, such as cartons, stowed directly in the
ship's hold as opposed to containerized or bulk cargo. See
Describes loose cargo, such as cartons, bales, boxes,
packages, etc stowed directly in the ship's hold as opposed to containerised or
The expression means "to start the discharge."
The space wasted in a ship's holds when stowing general
cargo which is uneven and packed.
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 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.
Shipments which are not packaged, but are loaded directly
into the vessel's holds. Examples of commodities that can be shipped in bulk
are ores, coal, scrap, iron, grain, rice, vegetable oil, tallow, fuel oil,
fertilizers, and similar commodities.
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
BUNKER ADJUSTMENT FACTOR
A Fuel Surcharge expressed as a percentage added or
subtracted from the freight amount, reflecting the movement in the market place
price for bunkers.
Name given for vessels Fuel and Diesel Oil supplies
(Originates from coal bunkers)
COST & FREIGHT
(Cost and Freight) Seller owns goods until they are
loaded on vessel; selling price includes all costs so far plus cost of freight.
The buyer is responsible for insurance.
COST, INSURANCE AND FREIGHT
Seller owns goods until they are loaded on vessel;
selling price includes cost of goods, insurance, and freight.
By doing certain tonnage and hatch calculations one can
work out the exact laytime available for cargo operations.
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.
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
Vessels too large for the Panama and/or the Suez Canal
are termed Capesize.
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.
A customs document permitting the holder to carry or send
merchandise temporarily into certain foreign countries (for display,
demonstration, or similar purposes) without paying duties or posting bonds.
CARRIAGE OF GOODS BY SEA ACT (C.O.G.S.A.)
1936 U.S. Statute that governs the acts that a carrier is
responsible for and defines the terms used in shipping. The act provides that
the shipowner's liability will be limited to $500 per shipping package, and it
stipulates a one-year time limit for filing suit against the carrier. This act
automatically applies to international ocean movements but not to domestic
ocean transits unless the carrier agrees to be bound by it.
Usually means Steamship Company, but can also refer to
trucking company, airline, or railroad as transporter of cargo.
Describes viscosity of fuel oils—380 c/s or 180 c/s
(better). The greater the number of centistokes, the higher the viscosity of
the oil and cheaper the cost. (Viscosity is the ability of liquid to resist
flow, e.g., honey is more viscous than lemon juice).
CERTIFICATE OF INSPECTION
A document often required with shipments of perishable or
other goods, when certification notes the good condition of the merchandise
immediately prior to shipment.
CERTIFICATE OF MANUFACTURE
A statement sometimes notarized by a producer, usually
also the seller, or merchandiser that indicates the goods have been
manufactured and are at the disposal of the buyer.
CERTIFICATE OF ORIGIN
A specified document, required by certain foreign
countries for tariff purposes, certifying the country of origin of the merchandise.
Sometimes requires the signature of the consul of the country to which it is
Water level calculated on the lowest tide that can ever
occur and used as a basis for chart measurements.
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
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
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.
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.
Freight payable at destination provided the vessel
delivers the goods as specified.
A ship specifically designed to carry both containers and
Combined transport document issued by the Baltic and
International Maritime Conference (BIMCO)
COMMENCEMNT OF LAYTIME
Laytime is said to commence once a vessel has arrived at
a port, complied with all stipulations and tendered the notice of readiness as
specified in the C/P
A statement of transaction between a seller and buyer
prepared by the seller, and a description of the merchandise, price, terms,
Set of four "negotiable" documents that
represents and takes the place of the goods themselves in the financing of the
cargo sales transaction.
COMMISSION PAST US
Implies that the quote does not include the normal
commission for the brokers quoting the order.
Transporter who holds himself out to the general public
for the transportation of goods over a definite route and according to a
In order to avoid loss to owners due to non-availability
of the berth or waiting at the anchorage, C/Ps specify that the notice of
readiness can be tendered by the master "whether in berth or not (wibon),
whether in free pratique or not (wifpon), and whether customs cleared or not
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.
Party who is to receive the good; usually the buyer.
Merchandise shipped to a foreign agent or customer when
an actual purchase has not been made, but under an agreement obliging the
consignee to pay the consignor for the goods when sold.
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.
Bills of lading, certificates of origin or special
invoice forms that are officially signed by the consul of the country of
A detailed statement of goods shipped certified by the
consul at the point of shipment.
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.
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
CONTRACT OF AFFREIGTMENT
In chartering this terms refers to a shipowner (or
charterer) who enters into a contract to carry a large quantity of cargo
between named port or regions on mutually agreed terms and conditions over a
period of time. The shipowner may employ his own vessels or charter other
vessels to meet his commitments. This ships used for the carriage are not
named. As each shipment takes place a fresh voyage charter is entered into
between the parties. This gives the shipowner sufficient flexibility.
To trade a ship wherever suitable cargoes are available,
rather then carrying cargoes to and from the country where the ship is
CURRENT ADJUSTMENT FACTOR
This takes account of the rate of exchange variations.
Owners are required to pay costs in local currency in the country of loading
and discharging. It is a percentage of the base rate.
CUSTOMARY DESPATH or CUSTOMARY QUICK DESPATCH
The charter is required to discharge and/or load as
quickly as possible (as fast as can) depending on the custom of the port. There
is no fixed time allowed to the charterer. Hence the term is not favourable to
the shipowner as the laytime is indefinite and uncertain.
CUSTOME OF THE PORT
This term relates to customs and practices which have
been gradually established in the course of time in a particular port. If a C/P
provides loading and discharging according to the custom of the port (or with
customary dispatch or as fast as can) the laytime becomes indefinite, a
situation unfavourable to shipowners as they will find it difficult to put a
claim for demurrage or damages for detention.
Licensed by U.S. Customs to clear shipments for clients,
also can forward goods "In Bond" to your port.
D/A-DOCUMENTS AGAINST ACCEPTANCE
Instructions from a shipper to his bank that the
documents attached to a time draft for collection are deliverable to the drawee
against his acceptance of the draft.
D/P-DOCUMENTS AGAINST PAYMENT
Instructions a shipper gives to his bank that the
documents attached to a draft for collection are deliverable to the drawee only
against his payment of the draft.
DAILY RUNNING COST
Cost per day of operating a ship.
DAMAGES FOR DETENTION
Penalty if cargo is not ready when ship arrives for
working (1st day of Laycan). This is not detention which is charged for ships
time on delay. If the cargo is ready there is no DAMFORDET.
DATE ON CHARTER PARTY
The actual date on which the fixture negotiations are
finally concluded, after all subjects have been lifted.
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
Where a charterer or shipper fails to fulfil his contract
to load the cargo or the full cargo, he commits a breach of the contract for
which he is liable to pay damages. These damages are known as dead freight. In
other words, payment for space booked on a vessel but not used.
DEADWEIGHT CARGO CAPACITY
Weight of the cargo only which a ship can carry when
immersed to her summer loadline. It is the deadweight all told less weight of
bunkers, fresh water, constants, etc.
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
Cargo carried outside rather than within the enclosed
cargo spaces of a vessel.
DECK LINE 12"
(or 300mm) line painted amidships on both sides and
parallel to the loadlines. The line is located at the point where the upper
most continuous deck, known as the freeboard deck, meets the side of the ship.
One of the three forms of laytime (the other two being
"calculable" and "indefinite"). The charterparty specifies
the days/hours allowed for loading and/or discharging.
Even under All Risk coverage, damage due to delay is not
recoverable. Most underwriters have inserted a "Delay Cause" in the
Open Cargo Policy, which states specifically that damage caused by delay is not
recoverable even if the delay was due to a peril insured against.
DELIVERY & RE-DELIVERY
A time charter commences with the delivery of the vessel
to the charterer and comes to an end with the re-delivery of the vessel to the
owner. The delivery or re-delivery can occur at a port or a place agreed upon,
e.g., passing Skaw (northern tip of Denmark, at the entrance of the Baltic
Sea); passing Cape Passero (south-east coast of Italy); passing Key West
(Florida), or any other position.
Money (compensation) payable to the shipowner by a
charterer for delay for which the owner is not responsible in loading and/or
discharging after the laytime stipulated in the C/P has expired.
DESPATCH / DESPATCH MONEY
The money (bonus) payable by the shipowner to the
charterer if the vessel completes loading or discharging before the expiry of
laytime stipulated in the C/P. usually half the demurrage rate.
DETENTION & DEMAGES FOR DETENTION
If demurrage has not been agreed in the charterparty, the
shipowner can claim compensation as damages for detention. A case where a
shipowner can claim damages for detention is when a vessel is chartered to load
at a berth where the vessel must be always afloat. However the charterer
directs the vessel to a berth where the vessel is not always afloat. Since it has
been agreed in the C/P that NOR can be tendered and laytime to commence whether
the vessel is in berth or not (wibon), the master refuses to comply with the
berthing orders. The shipowner in this case may not be able to put a claim for
demurrage. However, he may be entitled to "damages for detention".
Deviation is an intentional departure from the set or
agreed course of the voyage. The ship is not permitted to leave this route for
any purpose without justification. To protect themselves the shipowners enter a
clause in the charterparty called the "deviation clause" which allows
them to deviate to save or attempt to save life and/or property at sea and to
give the owners the right to deviate for bunkering purpose (by inserting
another clause called the "P & I Bunkering Clause").
Sums paid out by the ship's agent on behalf of a
shipowner and recovered subsequently.
Weight of the vessel without bunkers, fresh water, cargo
and/or passengers and constants.
Weight of the vessel plus bunkers, fresh water, cargo
and/or passengers and constants.
A charterer who has control of the vessel (e.g. under a
bareboat or time charter) is referred to as a "disponent owner".
During the duration of the charter, he acts as if he were the real owner.
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.
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
Receipt issued by an ocean carrier or its agent for
merchandise delivered at its dock or warehouse awaiting shipment.
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.
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
DOWN TO HER MARKS
When a vessel is immersed to the appropriate loadline and
therefore cannot load any further cargo.
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.
Survey undertaken to determine the quantities of cargo on
board a ship.
DROPPING LAST OUTWARD SEA PILOT
Some ports require the service of more than one pilot to
be used, one from the berth to the beginning of the channel and another called
the sea-pilot for navigation within the channel to the river and canal outside
the port limits. In this case the off-hire (or on-hire) survey will be carried
out only when the sea-pilot (who navigates the vessel outside the port limits)
disembarks from the ship.
DROPPING OUTWARD PILOT
A point of delivery on to and re-delivery off a time
charter. The point where an "on-hire" or "off-hire" survey
takes place is that place where the pilot who assists the ship in navigation to
the pilot station disembarks from the ship. A point in owner's favour as
expenses into and out of a port (e.g., hire of a tug) will be for charterer's
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.
(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
Speed of a ship which is lower than its normal speed. It
provides a reduction in fuel cost as less fuel is consumed.
EVEN IF USED
Time spent in carrying out loading and/or discharging in
excepted periods (e.g., Shex =Sundays and holidays excepted) is not to count as
laytime, even if used. This qualification of laytime is favourable to the
charterer. "Unless used" has the opposite effect and favours the
EX (POINT OF ORIGIN)
From the point where the shipment begins movement, e.g.,
"Ex Factory" "Ex Mine" or "Ex Warehouse." See
"Terms of Sale."
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
Clauses in a C/P or B/L which relieve the carriers of
responsibility of certain perils, accidents or neglect. (See Hague Rules and
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
(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.
Seller owns goods until they are picked up at his
factory; selling price is the cost of the goods.
In case what has actually been agreed is not very clear,
then an express clause is inserted in addition to the printed form drawing
attention to the terms specifically agreed upon.
FREE ALONGSIDE STEAMER
Seller owns goods until they are delivered alongside
vessel; selling price includes all costs so far plus cost of transportation to
FREE OF CAPTURE & SEIZURE
Free of Capture & Seizure - Clause excluding war
risks from the Marine Policy; war risks can be covered by issuing a separate
War Policy with an additional premium being charged.
FREE ON BOARD TRUCK
Seller owns goods until they are loaded on truck at his
factory; selling price includes all costs so far plus cost of loading on truck.
FREE ON BOARD VESSEL
Seller owns goods until they are loaded on vessel;
selling price includes all costs so far plus cost of loading on vessel.
FREE ON BOARD WAREHOUSE
(Free on board warehouse.) Seller owns goods until they
are delivered to buyer's warehouse at final destination; selling price includes
all costs so far plus transportation to final warehouse.
If a merchant sells on F.O.B., F.A.S., C&F or similar
terms, it is the buyer's responsibility to place the insurance.
FAST AS CAN
The term appears in a C/P when laytime is not fixed. It
means that the laytime is calculated by reference to the maximum rate at which
the ship in full working order is capable of loading or discharging the cargo
as fast as she can. At times this term is combined with the custom of the port
or customary quick dispatch.
Used by the owner's shipbroker in negotiations to
indicate that the vessel is being offered to only one possible charterer at a
time. Conversely, the term could also be used by the charterer's shipbroker
inviting owner's shipbroker to submit a firm offer for a particular order. It
is a normal practice to include certain main terms in a firm offer.
FIRST CLASS CHARTERER
When the name of the charterer is not revealed by his
broker the charterer is referred to as a first class charterer. However, it is
risky to negotiate with such a charterer as his record of payments cannot be
cross-checked with BIMCO.
FIRST OPEN WATER
The first date when a port is free from ice conditions to
allow ships to enter, load/discharge and leave safely, at the start of a new
season. The term is commonly used in the St Lawrence Seaway.
Conclusion of a shipbroker's negotiations to charter
(fix) a ship.
Chartering a Vessel
Cargo to be presented stacked and secured as an integral
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.
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
Seller delivers goods to appropriate dock or terminal at
port of embarkation and buyer covers costs and risks of loading.
FREE (OF) TURN
Time lost (if any) by a vessel for waiting its turn to
berth to count as laytime against the charterer. Opposite of "in regular
The charterer contracts to discharge the vessel, free of
expense to the shipowner.
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
FREE IN & OUT AND SPOUT TRIMMED
Charterer bears the expenses of the cargo to be loaded,
spout trimmed and discharged, free of expense to the shipowner (e.g., bulk
FREE IN & OUT AND STOWED
Charterer bears the expenses of loading, stowing and
discharging, free of expense to the shipowner (e.g., bagged rice).
FREE IN & OUT AND TRIMMED
Same as FIO plus that the cargo has also to be trimmed at
the charterer's expense, e.g., bulk cargo.
FREE IN & OUT STOWED AND TRIMMED
Charterer bears the expenses of the cargo to be loaded,
stowed, trimmed and discharged free or expense to the shipowner (e.g., scrap
FREE IN LINER OUT
Charterer pays expenses at load port(s), while the
shipowner pays the expenses at the discharge port(s)
FREE ON BOARD
Seller sees the goods _over the ship_s rail_
on to the ship which is arranged and paid for by the buyer
Free of discharge costs to owners. Includes seafreight
This expression means that the vessel has a clean bill of
health. (The health authorities board the vessel in order to ascertain the
correctness of the information given by the master or the agent).
FREE TO CARRIER
A modern equivalent of FAS used in intermodal transport
where goods are transferred at a nominated forwarder premises, depot or
terminal but not actually put on board vessel.
FREE TRADE ZONE
A port designated by the government of a country for
duty-free entry of any non-prohibited goods. Merchandise may be stored,
displayed, used for manufacturing, etc., within the zone and reexported without
duties being paid. Duties are imposed on the merchandise (or items manufactured
from the merchandise) only when the goods pass from the zone into an area of
the country subject to the Customs Authority. Also called FOREIGN TRADE ZONE
Distance measured amidships from the waterline to the
The money charged by the carrier for transporting goods.
FREIGHT AT DESTINATION
Freight payable at destination upon delivery of goods.
Also referred to as "freight collect".
Unit of cargo on which freight rate is based, either one
tonne or one cubic metre.
FRESH WATER ALLOWANCE
Loadline regulations permit extra draft when a vessel
loads in fresh water, the reason being that the vessel's draft becomes less
when she reaches open sea (salt water) where the density of water is greater.
FRESH WATER ARRIVAL DRAFT
Fresh water draft of a ship on arrival at a port.
FRIDASYS & HOLIDAYS EXCEPTED or FRIDAYS &
Fhex applies to Muslim countries where Friday is observed
as a holiday; Fhinc applies to non-Muslim countries where Friday is not
observed as a holiday.
There is a question of frustration when through
circumstances entirely beyond control of parties commercial object of maritime
adventure is entirely frustrated. The expression "frustration of the
adventure" in C/Ps relates to a delay of such a duration—without the
actual fault of either party—as to frustrate the charter.
FULL & COMPLETE CARGO
Cargo required to fill a ship to capacity either by
weight or cubic measurement.
GENERAL AVERAGE (G.A.)
Ancient principle of equity in which all parties in a sea
adventure (ship, cargo, and freight) proportionately share losses resulting
from a voluntary and successful sacrifice of part of the ship or cargo to save
the whole adventure from an impending peril, or extraordinary expenses
necessarily incurred for the joint benefit of ship and cargo.
GENERAL AVERAGE SECURITY
Documents the cargo owner presents to the General Average
Adjuster to replace the vessel owner's maritime lien on cargo for its share of
General Average and to obtain release of the goods by the Steamship Company.
G.A. Security consists of a G.A. Bond and either a cash deposit or an
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.
The capacity in cubic feet of the cargo hold in a ship
measured to inside of the shell plating. (If measured to the inside of the
frames or cargo battens it is called bale capacity is used for bulk cargoes
e.g. grains, and bale capacity is used for general cargo, e.g., pallets.
GROSS TERMS (GROSS CHARTER)
Type of voyage charter in which the shipowner pays for
tally, loading, stowing, trimming and discharging costs. The alternative is
fio, fios, fiot or foist where the cost of tally, loading, discharging, etc.,
are for charter's account. (However the port charges are paid by the shipowner
in all cases).
The vessel's internal space measured in units of 100
cu.ft. The certificate of tonnage specifies the ship's gross tonnage.
(Generally speaking, gross tonnage is a measure of the volume of a vessel and
net tonnage represents the volume available for cargo, that is, the revenue
earning space in a vessel). Different tonnage measurement systems (i.e British,
Suez Canal or Panama Canal) have different tonnages for the same vessel.
Freight payable whether the goods are delivered or not,
provided the failure to deliver the goods resulted from causes beyond the
HANDY SIZE / MAX
Bulk carriers in the range of 20,000-50,000 tonnes dwt.
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.
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.
Most C/Ps allow the charterer to sub-let or sub-charter
the vessel to other charterers. The original charterer is then called the
"head charterer" or "disponent owner".
HEAVY GRAINS, SOYA BEANS & SORGHUMS
What [SF44-49], soyabeans [SF48-52] and sorghums [SF
44-49] are considered as heavy grains. Also rye and maize are heavy grains.
Barley and oats are classified as light grains. In practice heavy-grains
constitute the bulk of the grain shipments.
HEAVY HANDY DEADWEIGHT SCRAP
A type of scrap metal cargo. It is neither very light nor
very heavy and is therefore called "handy" with a SF of between
The payment for hiring a vessel on a time-chartered
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).
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.
A term applied to the status of merchandise admitted
provisionally to a country without payment of duties -- either for storage in a
bonded warehouse or for trans-shipment to another point, where duties will
eventually be imposed.
IN GEOGRAPHICAL ROTAION
If an option is given to the charterers to load or
discharge a ship in more than one part within a range of ports, it is important
to state that if they exercise the option the ship will proceed to the ports in
geographical rotation (without, for example, going north and south and then
again north). This is important to the owner to determine the distance, time
and fuel expenses.
IN REGULAR (USUAL) TURN / TURN TIME
Turn refers to the sequence in which a vessel may be
allowed to berth for (coal) loading or discharging by the port authorities due
to congestion at the port (or availability of coal). Laytime does not generally
count against the charterer while the ship is waiting its turn. However, if the
C/P says "free of tune" then time waiting for a berth will count.
On the passage.
Writing means in relation to a notice of readiness, a
notice in any manner or mode and includes fax, cable, telegram and telex.
This arises in cases where the shipowner agrees for the
vessel to be loaded/discharged as fast as can, with customary dispatch, with customary
quick dispatch or as per the custom of the port. In such cases there is no way
to determine the exact time the vessel will take for loading and discharging.
A loss caused by the inherent nature of the thing insured
and not the result of a casualty or external cause.
INLAND BILL OF LADING
A bill of lading used in transporting goods overland to
the exporter's international carrier.
INSTITUTE WARRANTY LIMITS
In insurance, a set of warranties (i.e. same as
conditions, in insurance) in a hull policy which prohibit the vessel from
entering certain waters (mainly ice areas) without payment of additional
premium or with a change in conditions.
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
Carriage of a commodity by different modes of transport,
i.e. sea, road, rail and air within a single journey.
INTERNATIONAL TRANSPORT WORKERS' FEDERATION
Organisation which looks after the welfare of transport
workers and deals with their pay and working conditions. It issues the
"ITF Blue Certificate" to a ship if its owner complies with their
requirements. Non-production of such a certificate can cause problems for a
vessel in all Australian ports and in some ports of other countries.
IRREVOCABLE LETTER OF CREDIT
A letter of credit in which the specified payment is
guaranteed by the bank if all terms and conditions are met by the drawee.
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).
Minimum distance between the bottom of a ship and the bed
of sea, also called under keel clearance.
Stands for "laydays commencing / laydays
canceling" and is a spread of dates which provides for the earliest date
for the ship to arrive and for laytime to commence and also gives the last date
for the charterer to cancel the charter if the vessel does not arrive by the
The correct interpretation of this is the earliest time
when the vessel is expected to be ready for loading and/ or discharging.
(Sometimes the word is used to refer to "laytime" but then this leads
to confusion. Laytime is the period allowed for the cargo to be loaded and/or
Means the period of time agreed between the parties
during which the owner will make and keep the ship available for loading/
discharging without payment additional to the freight. The time allowed to the
charterer is not indefinite. The time is either "fixed" or
To stop trading a ship temporarily due to bad markets.
During lay-up the daily running lost of the ship is greatly reduced.
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.
Maximum length between the extreme ends (forward and aft)
of the ship. (Also referred to as "overall length").
LETTER OF CREDIT - COMMERCIAL
A letter addressed by a bank, at the insurance and
responsibility of a buyer of merchandise, to a seller, authorizing him to draw
drafts to a stipulated amount under specified terms and undertaking
conditionally or unconditionally to provide eventual payment for drafts.
LETTER OF INDEMINITY
A written statement in which one party (shipper) undertakes
to compensate another (shipowner) for the cost and/or consequences of carrying
out a certain act, e.g., obtaining a release of goods without producing an
The right to retain control of cargo until the charges
related to it are paid.
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
LIGHTENNING (OR LIGHTERAGE)
To reduce the draft of the vessel so as to enable it to
enter the part/berth where the depth of available water is restricted. This may
be achieved by lightening or lighterage by discharging part of the cargo in
barges outside the port/berth.
LINER IN FREE OUT
The shipowner bears all costs for loading (stowing,
trimming etc.). The charterer (or receiver/consignee) pays all costs incurred
for discharge at the destination part.
A rate that includes freight plus handling charges at loading
and discharging ports. (Similar to "Gross terms" used in bulk cargo
Document signed by the Assured where he acknowledges
receipt of money advanced by the insurance company as an interest-free loan
(instead of payment of a loss) repayable to the insurance company only if the
loss is recovered from a third party and then only to the extent of the
LOSS OF MARKET
A situation in which, for one reason or another, sound
cargo is no longer wanted by the consignee when it arrives. This is a
"business loss" not recoverable under a Marine Cargo Policy; e.g.,
Christmas trees arriving in January undamaged.
LOWEST ASTRONOMICAL TIDE
It pre-supposes that at the very wors there would always
be that depth of available water at the particular spot.
A fixed sum is paid to the shipowner regardless of the
quantity of cargo actually shipped.
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
Average of forward and aft draft of a vessel.
Minimum and maximum cargo; a fixed quantity.
MORE OR LESS CHARTERER'S OPTION
Gives the option to the charterer to increase or decrease
the quantity of cargo by a percentage agreed in advance.
MORE OR LESS OWNER'S OPTION
Gives the option to the shipowner to increase or decrease
the quantity of cargo by a percentage agreed in advance, e.g., 10,000 tonnes 5%
more or less in owner's option, means that the shipowner may load between 9500
to 10500 tonnes of cargo.
NAMED PERILS POLICY
Any marine policy limiting coverage to perils
specifically listed in the policy; opposed to All Risks policy. See "All
Implies that cargo is presented stacked in the contour of
similarly shaped cargo, it may be likened to a stack of plates. This is
particularly relevant in the presentation of tankage strakes for
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).
The figure represents the total revenue earning space
(volume) within a ship available for the cargo. This is gross tonnage less
"deductions" and less "allowances for propelling machinery
space" and is calculated in units of 100 cu.ft. (Net tonnage is also
referred as "register" tonnage).
Time and voyage charters fall under this category as
opposed to demise and bareboat charters.
NON-REVERSIBLE / NORMAL LAYTIME
Means notice by the master or his agent to the charterer,
shipper, receiver or any other persons as required by the charterer, that the
ship has arrived at the port or berth as the case may be and is ready to
load/discharge in all respects. Laytime begins to count from the moment when
NOR has been tendered by charterers/consignees.
OCEAN BILL OF LADING
Bill of lading indicating that the exporter consigns a
shipment to an international carrier for transportation to a specified foreign
market. Unlike an inland B/L, the ocean B/L also serves as a collection. If it
is a straight B/L, the foreign buyer can obtain the shipment from the carrier
by simply showing proof of identity. If a negotiable B/L is used, the buyer
must first pay for the goods, post a bond, or meet other conditions agreeable
to the seller.
In a time C/P it specifies the circumstances under which
hire is suspended or reduced.
Means that the laytime has expired. Unless the C/P
expressly provides to the contrary the time on demurrage will not be subject to
the laytime exceptions.
ONCE ON DEMURRAGE ALWAYS ON DEMURRAGE
Time on demurrage is continuous unless exceptions to
demurrage are contained in the C/P.
Said of a ship, which is available at a particular place
to load her next cargo, having discharged the last one.
A C/P in which neither the ports of destination nor the
nature of the cargoes are specified and the vessel may fix for any cargo and
for any ports.
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
A port that is free of ice.
P & I BUNKERING CLAUSE
The ship is permitted to deviate without breaking the
contract for lifting bunkers at ports where it may be cheaper.
A low portable platform, usually wooden, on which cargo
is stacked for storage or transportation; a skid.
A bulk carrier of about 65,000 tonnes deadweight whose
dimensions enable her to transit the Panama Canal where due to locks draft,
beam and length are limiting factors.
PER HATCH PER DAY
The expressionis used to calculate laytime with reference
to the number of cargo hatches serving cargo compartments on the vessel.
Laytime is to be calculated by multiplying the agreed rate per hatch of
loading/discharging the cargo by the number of ship's hatches and dividing the
quantity of cargo by the resulting sum. Thus, Laytime= Quantity of Cargo/Daily
Rate x Number of Hatches = Days; A hatch that is capable of beign worked by two
gangs simultaneously shall be counted as two hatches.
PER WORKING HATCH PER DAY or PER WORKABLE HATCH PER DAY
This expression is more in charterer's favour than
"per hatch per day". The word "working" or
"workable" hatch means that hatch can be worked because there is
cargo in the hold below it. Workability refers to the cargo and not
cranes/derricks that serve the hatch in question. Largest quantity in one
hold/Daily rate per hatch x Number of hatches serving that hold =Days; A hatch
that is capable of being worked by two gangs simultaneously shall be counted as
PERILS OF THE SEA
Fortuitous accidents or casualties, peculiar to
transportation on a navigable water, such as stranding, sinking, collision of
the vessel, striking a submerged object, or encountering heavy weather or other
unusual forces of nature.
PHYTOSANITARY INSPECTION CERTIFICATE
A certificate, issued by the US Department of Agriculture
to satisfy import regulations for foreign countries, indicating that a US
shipment has been inspected and is free from harmful pests and plant diseases.
The theft of part of the contents of a shipping package.
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.
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).
License or permission to use a port
PRO FORMA INVOICE
An invoice provided by a supplier prior to the shipment
of merchandise, informing the buyer of the kinds and quantities of goods to be
sent, their value, and important specifications (weight, size, etc.)
Vessel that can be ready to load at short notice, say
within a few delay.
REACHABLE ON ARRIVAL or ALWAYS ACCESSIBLE
The charterer undertakes that when the ship arrives at
the port there will be a loading/discharging berth for her to which she can
proceed without delay.
Revenue Tonne (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.
An option given to the charterer to add together the time
allowed for loading and discharging. When the option is exercised the effect is
the same as a total time being specified to cover both operations. Until the
toal time expires, no demurrage becomes payable. Opposite of normal or
non-reversible laytime. (See "days all purposes").
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.
Voyage involving two legs, the second of which brings the
ship back to the first port.
RUNNING DAYS / CONSECUTIVE DAYS
Days which follow one immediately after the other. They
are continuous. A working day may exclude Sundays and holidays. But a running
day does not exclude any day unless provided in the C/P.
A berth which, during the relevant period of time, the
ship can reach, remain at and depart without being exposed to danger.
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
SALE & PURCHASE BROKER
Person who negotiates the terms for the sale of a ship on
behalf of the buyer or seller.
SALT WATER ARRIVAL DRAFT
Vessel's draft on arrival in salt water where the density
of water is 1025 kg per cbm.
Action taken to save a ship or her cargo from loss or
damage at sea. Property saved from loss or damage at sea.
Rates set by organizations which publish standard C/Ps.
The scale rates contain daily loading rates as well as demurrage rates.
Applicable to bulk cargoes like coal, ores, etc., from specific countries.
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
Tank which is used for water ballast only.
Ship whose holds are shaped in such a way that a bulk
cargo loaded into her will level itself.
Time spent shifting between berths is generally taken to
be for owner's account, provided it has been agreed that loading/discharging is
at more than one berth. Also time spent in shifting from the waiting place
(anchorage) to the first cargo berth is generally not to count as laytime.
SHIPPER'S EXPORT DECLARATION
A form required for all shipments by the US Treasury
Department and prepared by the shipper, indicating the value, weight,
destination, and other basic information about an export shipment.
SHIPPER'S LOAD AND COUNT
Note on bill of lading indication that the contents of a
container were loaded and counted by the shipper and not checked or verified by
the Steamship Company.
Are bearers (timber or steel) positioned under cargo to
enable fork lift handling at port, and for ease of rigging and lashing on board
SPECIAL POLICY OF INSURANCE
Document issued on behalf of the Underwriter stating the
terms and conditions of the marine insurance. Issued when evidence of insurance
is required, as by the bank issuing the Letter of Credit.
Ratio of the weight of a liquid to its cubic capacity.
Also called "relative density". Water has SG of 1.00 (1 cubic metre
of water weighs 1 tonne).
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.
A vessel which can commence loading immediately after the
charter has been fixed. Also used for cargo which is available for immediate
SS OR SUBSTITUTE
Such a condition in a C/P entitles the owner to replace
the original vessel by another ship, of same cargo capacity including class and
suitability of laycan, for the fulfillment of the charter.
STANDARD INTERNATIONAL TRADE CLASSIFICATION (SITC)
A standard numerical code system developed by the United
Nations to classify commodities used in international trade.
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
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
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)
STRAIGHT BILL OF LADING
A non-negotiable bill of lading in which the goods are
consigned directly to a named consignee.
Some C/Ps state that delays due to strikes are not to
count as laytime.
Implies that the vessel is fixed subject to the cargo
quantity being available in the laydays agreed upon.
Means that the acceptance of the terms offered by the
other side is "conditional" and hence a conditional acceptance is not
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.
bulk carriers of about 150,000 tonnes dwt with a draft of
53' which can transit the Suez Canal fully laden.
SUNDAYS & HOLIDAYS EXDEPTED / INCLUDED
Under this expression Sundays and holidays will not count
as laytime (excepted) /will count as laytime (included).
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.
A marine specialist who examines damaged property and
determines the cause, nature, and extent of damage and methods of repair and/or
replacement. He is not an adjuster, and all his actions are without prejudice
to policy terms and conditions.
TAKING INWARD PILOT
A point of delivery on to a time charter. The vessel's
delivery commences with the pilot boarding the ship. If weather is bad pilot
may not be able to board the vessel. Hence the ship cannot be considered to be
delivered. This term therefore favours the charterer, whereas "arrival
pilot station" is favourable to the shipowner.
The weight of a container and packing materials without
the weight of the goods it contains.
TEN PERCENT BAGS FOR SAFE STOWAGE
Some C/Ps stipulate that if a charterer loads in bulk,
e.g., grain, 10% of the cargo must be laoded in bags to bring the ship down to
The term fixed for payment of a draft.
TERMS OF SALE
The invoice is the sales contract between buyer and
seller and indicates the Terms of Sale.
THROUGH BILL OF LADING
A single bill of lading converting both the domestic and
international carriage of an export shipment. An air waybill is essentially a
through bill of lading used for air shipments. However, ocean shipments usually
require two separate documents -- an inland B/L for domestic carriage and an
ocean B/L for international carriage. Through bills of lading are insufficient
for ocean shipments.
Employment of a vessel for a specific period of time,
say, 2 months. The charterer has no possession or control of the ship. The
shipowner receives "hire" payments from the charterer, usually
so-much per day or pro-rata paid semi-monthly or monthly in advance. Also
called "period charter".
TIME LOST WAITING FOR BERTH TO COUNT AS LOADING /
DISCHARDING TIME or AS LAYTIME
If the main reason why NOR can not be given is that there
is no loading/discharging berth available to the ship the laytime will commence
to run when the ship starts to wait for a berth and will continue to run,
unless previously exhausted, until the ship stops waiting. The laytime
exceptions apply to the waiting time as if the ship were at the
loading/discharging berth provided the ship is not already on demurrage. When
the waiting time ends time commences to count and restarts when the ship
reaches the loading/discharging berth subject to say notice time if provided
for in the C/P, unless the ship is by then on demurrage.
In order to calculate the time used for loading or
discharging a time sheet is drawn up from the statement of facts to determine
if any demurrage/dispatch in payable.
TON PER INCH / CENTIMETRE
The weight which must be added to, or taken from, a ship
in order to change its mean draft by one inch or one centimeter.
Gross Tonnage - Total internal carrying capacity of a
vessel expressed in measurement tons (one measurement ton = 100 cu. ft.).
Total of (a) address commission [adcom] to charterer plus
(b) brokerage to shipbroker.
Limits or restrictions imposed by the shipowner on a time
charterer's freedom to nominate ports to ensure that a list of places
considered unsafe is excluded. Usually followed by the words "within
Institute Warranty Limits".
A term designating a shipment destined for an interior
point or a place best reached by reshipment from another port.
To transfer from one ship or conveyance to another for
The operation of shoveling grain, coal and other bulk
cargoes to the wings or ends of the holds when loading.
A vessel chartered on time charter terms but for a
specific voyage and expected duration. The charterer pays hire instead of
freight and the contract is that of a time charter.
TURN ROUND TIME
Time taken to discharge and/or load a ship at a terminal.
Historically quantity a cask or drum lacks of being full.
Nowdays the term is used for tankers or oil storing tanks representing empty
ULTRA LARGE CRUDE CARRIERS
Tankers above 320,000 tonnes dwt.
UNLESS SOONER COMMENCED
Time actually used before commencement of laytime shall
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.
The clause in the Marine Policy that contains a fixed
basis of valuation agreed upon by the Assured and the Underwriter and which
establishes the insured value of the merchandise. The Clause determines the
amount payable under any recoverable loss or General Average contribution.
VERY LARGE CRUDE CARRIERS
Tankers in the range of 160,000 to 319,000 dwt.
Every description of watercraft or other artificial
contrivance used, or capable of being used, as a means of transportation on
Employment of a vessel for a specific and certain voyage
to load at one or more named ports to be carried to a named discharging port or
ports. The owner's remuneration is known as freight calculated on the amount of
cargo carried. Voyage C/P contains laytime and demurrage/dispatch clauses.
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
A receipt supplied by a warehouseman for goods he has
placed in storage.
The clause in the Cargo Policy that defines when coverage
commences and terminates. It is the intent of the policy to attach at the time
the goods leave the warehouse of origin named in the Policy, and to continue
while the goods are in due course of transit until delivered to the warehouse
of destination named in the Policy, where it terminates.
That time during which weather prevents working shall not
count as lay time.
WEATHER WORKING DAY
A working day or part of a working day during which it is
possible (if the vessel is loading / discharging) to load of discharge the
cargo without interference due to weather. If such interference occurs (or
would have occurred if work had been in progress) there shall be excluded from
laytime a period calculated by reference to the ratio which the duration of the
interference bears to the time which would have or could have been worked but
for the interference.
A charge assessed by a pier or dock owner for handling
incoming or outgoing cargo.
WHETHER IN BERTH OR NOT or BERTH NO BERTH
If the location named for loading/discharging is a berth
and if the berth is not immediately accessible to the ship NOR can be given
when the ship has arrived at the port in which the berth is situated.
WHETHER IN FREE PRATIQUE OR NOT
With the insertion of this phrase, NOR can be tendered
even if the health clearance formalities are not completed.
WHETHER IN PORT OR NOT
The vessel need not exactly be within the port limits for
NOR to be tendered. If is possible to do this if the vessel has arrived at the
usual waiting place for the vessel to become an arrived ship.
WITH OUT GUARANTEE
By the use of this phrase the shipowner is not bound by
the veracity of the statement. The phrase is commonly used during negotiations
in order to guard all parties involved in the transactions.
Day or parts of a day which are not expressly excluded
from laytime by the C/P and which are not holidays.
Scale by which tanker freight rates are quoted.