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Home , Barge, Breakbulk cargo, Containerization, Dock (maritime), Freight forwarder, Lighter aboard ship

Glossary of and

Shipping Terms Glossary

Backhaul

To haul a shipment back over part of a route A document that establishes the terms of con- that it has already traveled; return movement of tract between a shipper and a transportation , usually opposite from the direction of its company. It serves as a document of title, a con- primary cargo destination. tract of carriage, and a for goods. Ballast keel Bond port A heavy keel fitted to vessels to lower the center Port of a vessel’s initial customs entry to any of gravity and improve stability. country; also known as first port of call. Ballast tanks Bonded warehouse Compartments at the bottom of a that are filled with liquids for stability and to make the A warehouse authorized by customs authorities ship seaworthy. for storage of goods on which payment of duties is deferred until the goods are removed. Breakbulk The width of a ship. Loose, noncontainerized cargo stowed directly Berth into a ship’s . A place in which a vessel is moored or secured; Broker place alongside a quay where a ship loads or discharges cargo. A person who arranges for transportation of loads for a percentage of the revenue from the Berth term load. Shipped under a rate that does not include the Build-operate-transfer (BOT) cost of loading or unloading. Berth dues (or quay dues or dockage) A form of concession where a private party or consortium agrees to finance, construct, operate Charges for the use of a berth. Typically and maintain a facility for a specific period and assessed based on the duration of a vessel’s stay transfer the facility to the concerned govern- and (LOA). ment or port authority after the term of the

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concession. The ownership of the concession Carrier area (port land) remains with the government or port authority during the entire concession Any person or entity who, in a contract of period. The concessionaire bears the commer- carriage, undertakes to perform or to procure cial risk of operating the facility. the performance of carriage by , inland , rail, , air, or by a combination of Build-own-operate-transfer (BOOT) such modes.

A form of concession where a private party or Cartage consortium agrees to finance, construct, own, operate and maintain a facility for a specific Intraport or local hauling of cargo by drays or Glossary period and transfer the facility to the concerned trucks (also referred to as drayage). government or port authority after the term of Chassis the concession. The ownership of the conces- sion area (port land) vests in the private party A frame with wheels and locking or consortium during the entire concession devices to secure the container for movement. period and is transferred to the government or port authority at the end of the concession Classification yard (also commonly period. As with the BOT, the concessionaire known as a shunting yard) bears the commercial risk of operating the A railroad yard with many tracks used for facility. assembling freight . Bulkhead Cleaning in transit

A structure to resist water; a partition separating The stopping of articles (such as farm products) one part of a ship from another part. for cleaning at a point between the point of ori- Bulk vessel gin and destination. Clearance All vessels designed to carry such as grain, fertilizers, ore, and oil. The size beyond which vessels, cars, or loads cannot pass through, under, or over bridges, Bunkers , highways, and so forth. Fuel used aboard . Cleat

Cabotage A device secured on the floor of a container to Shipments between of a single nation, fre- provide additional support or strength to a quently reserved to national flag vessels of that cargo-restraining device, or a device attached to nation. a to secure lines. Cargo tonnage

Ocean freight is frequently billed on the basis of A transportation company that provides service weight or measurement . Weight tons can to the general public at published rates. be expressed in terms of short tons of 2,000 Concession pounds, long tons of 2,240 pounds, or metric tons of 1,000 kilograms (2,204.62 pounds). An arrangement whereby a private party Measurement tons are usually expressed as (concessionaire) leases assets from a authorized cargo measurements of 40 cubic feet (1.12 cubic public entity for an extended period and has meters) or cubic meters (35.3 cubic feet). responsibility for financing specified new fixed

366 Glossary of Port and Shipping Terms investments during the period and for providing Container vessel specified services associated with the assets; in return, the concessionaire receives specified rev- Ship equipped with cells into which enues from the operation of the assets; the assets can be stacked; containerships may be full or revert to the public sector at expiration of the partial, depending on whether all or only contract. some of its holds are fitted with container Glossary cells. Conservancy Container terminal In some countries, this fee is levied to retain upkeep of the approaches to waterways and An area designated for the handling, storage, . and possibly loading or unloading of cargo into or out of containers, and where containers can Consolidation be picked up, dropped off, maintained, stored, or loaded or unloaded from one mode of trans- Cargo consisting of shipments of two or more port to another (that is, vessel, truck, , or shippers or suppliers. Container load shipments rail). may be consolidated for one or more con- signees. Container yard

Container A container handling and storage facility either within a port or inland. Steel or aluminum frame forming a in which cargo can be stowed meeting International Contraband Standard Organization (ISO)-specified measure- ments, fitted with special castings on the corners Cargo that is prohibited. for securing to lifting equipment, vessels, chassis, Contract carrier rail cars, or stacking on other containers. Containers come in many forms and types, Any person not a common carrier who, under including: ventilated, insulated, refrigerated, flat special and individual contracts or agreements, rack, vehicle rack, open top, bulk liquid, dry or cargo for compensa- bulk, or other special configurations. Typical con- tion. tainers may be 10 feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8 feet or 8.5 Controlled atmosphere feet in width, and 8.5 feet or 9.5 feet in height. Sophisticated, computer controlled systems that manage the mixture of gases within a container Container freight station throughout an intermodal journey, thereby A dedicated port or container terminal area, reducing decay. usually consisting of one or more sheds or Customhouse warehouses and uncovered storage areas where cargo is loaded (“stuffed”) into or unloaded A government office where duties are paid, doc- (“stripped”) from containers and may be tem- uments filed, and so forth, on foreign ship- porarily stored in the sheds or warehouses. ments. Container pool Customs broker

An agreement between parties that allows the A person or firm, licensed by the customs efficient use and supply of containers; a com- authority of their country when required, mon supply of containers available to the ship- engaged in entering and clearing goods through per as required. customs for a client (importer).

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Cut-off time (closing time) EDIFACT

The latest time a container may be delivered to Electronic Data Interchange for Administration, a terminal for loading to a scheduled barge, Commerce, and Trade. International data inter- vessel, , or truck. change standards sponsored by the . Daily running cost Eminent domain Cost per day of operating a ship. The sovereign power to take property for a nec- Deconsolidation point essary public use, with reasonable compensa-

Glossary tion. Place where cargo is ungrouped for delivery. Feeder service service whereby loaded or empty A penalty charge against shippers or containers in a regional area are transferred to a for delaying the carrier’s equipment beyond the “mother ship” for a long-haul ocean voyage. allowed free time. The free time and demurrage charges are set forth in the charter party or Fixed costs freight tariff. Costs that do not vary with the level of activity. or quay Some fixed costs continue even if no cargo is carried; for example, terminal leases, rent, and A structure attached to land to which a vessel is property taxes. moored. (or draught) The title of a common clause in contracts, The depth of a ship while in the water. exempting the parties from nonfulfillment of their Measured as the vertical distance between the obligations as a result of conditions beyond their and the lowest edge of the keel. control, such as earthquakes, floods, or war. Foreign trade zone Removal of sediment to deepen access channels, A free port in a country divorced from customs provide turning basins for ships, and maintain authority, but under government control. adequate water depth along waterside facilities. Merchandise, except contraband, may be stored Dry bulk in the zone without being subject to import duty regulations. Loose, mostly uniform cargo, such as agribulk products, coal, fertilizer, and ores, that are Forty-foot equivalent unit (FEU) transported in bulk carriers. Unit of measurement equivalent to one forty- Dunnage foot container. Two twenty-foot containers (TEUs) equal one FEU. Material used in stowing cargo either for sepa- ration or the prevention of damage. Free trade zone Electronic data interchange (EDI) A zone, often within a port (but not always), designated by the government of a country for Transmission of transactional data between duty-free entry of any nonprohibited goods. computer systems. Merchandise may be stored, displayed, or used

368 Glossary of Port and Shipping Terms for within the zone and reex- Grounding ported without duties being applied. Also referred to as free port. Contact by a ship with the ground while the ship is moored or anchored as a result of the Freight, demurrage, and defense water level dropping, or when approaching the

coast as a result of a navigational error. Glossary Class of insurance provided by a protection and indemnity (P&I) club that covers legal costs Groupage incurred by a shipowner in connection with claims arising from the operation of the ship. The grouping together of several compatible into a full container load. Also referred to as consolidation. Person or company who arranges for the car- dues (or port dues) riage of goods and associated formalities on behalf of a shipper. The duties of a forwarder Charges by a port authority to a vessel for include booking space on a ship, providing all each harbor entry, usually on a per gross - the necessary documentation, and arranging nage basis, to cover the costs of basic port customs clearance. and marine facilities such as buoys, beacons, and vessel traffic management Freight payable at destination system. Method of paying the freight often used for Hand-over shipment of bulk cargo, the weight of which is established on discharge from the ship. Term used in contracts, meaning the process of providing exclusive, unencumbered, peaceful, Gantry and vacant possession of and access to a con- cession area and the existing operational port A crane fixed on a frame or structure spanning infrastructure and also all rights, title (free of an intervening space typically designed to tra- all encumbrances and security), and interest in verse fixed structures such as cargo (container) all the movable assets and all the facilities by storage areas or quays and which is used to the government or the port authority on the hoist containers or other cargo in and out of hand-over date for the conduct of terminal vessels and place or lift from a vessel, barge, operations. trucks, chassis, or train. Gateway Harbormaster An officer who is in charge of vessel move- A point at which freight moving from one terri- ments, safety, security, and environmental issues tory to another is interchanged between trans- within a port. portation lines. Good international practice Heavy lift charge A charge typically imposed when special lifting Term used in contracts, meaning the exercise of gear is required to handle a given piece of that degree of skill, diligence, and prudence that cargo, which may be of either heavy weight or would, in order to satisfy internationally accept- of large dimensions (often referred to as “out of ed standards of performance, reasonably be gauge” when dealing with container vessels). practiced by an experienced person holding all applicable qualifications who is engaged in the Hold same type or similar types of activity under the same or similar circumstances. A ship’s interior storage compartment.

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In bond Loaded draught (or draft)

Cargo moving under customs control where Depth of water to which a ship is immersed duty has not yet been paid. when fully loaded. Inducement Landlord port

Placing a port on a vessel’s itinerary because the An institutional structure where the port volume of cargo offered by that port justifies authority or other relevant public agency retains the cost of routing the vessel. ownership of the port land and responsibility for port planning and development, as well as

Glossary Inland carrier the maintenance of basic port infrastructure and aids to navigation. A transportation company that hauls export or import traffic between ports and inland Lender’s direct agreement points. Agreement between parties to a concession or Intermodal BOT agreement (government or port authority and special purpose vehicle [SPV] or terminal Movement of cargo containers interchange- operator) and the lenders (usually banks or a con- ably between transport modes where the sortium of banks) setting out the rights and obli- equipment is compatible within the multiple gations of the lenders in relation to the govern- systems. ment or port authority regarding the facilitation (or ) of the financing of a port project. The lender’s direct agreement is used in the event of a pro- A structure that is perpendicular or at an angle posed termination of the concession agreement to to the shoreline to which a vessel is secured for induce the lenders to provide the debt to the SPV the purpose of loading and unloading cargo. or operator under the financing documents. These rights and obligations usually comprise assign- Jumboising ment rights with respect to the concession and the Conversion of a ship to increase cargo-carrying site lease agreement, priority rights with respect capacity by dividing and adding a new section. to of repayment of the debt, and step-in rights in case of termination as a result of breach of con- Keel tract by the SPV or operator.

A flat steel plate running along the center line Lighter of a vessel. An open or covered barge towed or pushed by Knot a or a tug and used primarily in and on inland waterways to carry Measure of ship speed, equal to one nautical cargo to or from the port. mile (1,852 meters) per hour. Limited recourse financing LASH Project financing in which sponsors or govern- Abbreviation for “.” A spe- ments agree to provide contingent financial cially constructed vessel equipped with an over- support to give lenders extra comfort; typically head traveling gantry crane for lifting specially provided during the construction and start-up designed out of the water and stowing period of a project, which is generally the them into the cellular holds of the vessel (load- riskiest time in the life of an infrastructure ing) and unstowing (unloading) as well. project.

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Line haul ownership of the facility and the commercial risk associated with its operation. The movement of freight over the tracks of a transportation line from one location (port or Mezzanine financing city) to another.

A mix of financing instruments, including equi- Glossary Liner ty, subordinated debt, completion guarantees, and financing, the balance of which A vessel sailing between specified ports on a changes as the risk profile of a project changes regular basis. (that is, as a project moves beyond construction into operation). Lloyds’ Registry Mixed cargo An organization engaged in the surveying and classing of ships so that insurance underwriters Two or more products carried on board one and others may know the quality and condition ship. of the vessels involved. Mobile crane Longshoreman (or docker, port worker, or dock worker) General purpose crane capable of moving on its own wheels from one part of a port to another. Individual employed locally in a port to load and unload ships. Moor Lo-lo (lift-on lift-off) To attach a ship to the shore by ropes.

Cargo handling method by which vessels are Neobulk cargo loaded or unloaded by either ship or shore Non-, or economically not feasible, containeriz- cranes. able cargo such as timber, steel, and vehicles. Malacca-max Nonrecourse financing

Maximum size of container and bulk vessels (in Project financing for which no loan guarantees terms of draught) that can cross the Malacca or financial support is provided by the sponsors Straits. The Malacca-max reference is believed or governments to lenders for the project. to be today the absolute maximum possible size for future container vessels (approximately Nonvessel operating common carrier 18,000 TEU). (NVOCC) Main port A cargo consolidator in ocean trades who buys space from a carrier and resells it to smaller A large multipurpose port serving a number of shippers. The NVOCC issues bills of lading, countries and regions. publishes tariffs, and otherwise conducts itself as an ocean common carrier, except that it does not Management contract provide the actual ocean or intermodal service. An arrangement whereby the operation and On-carrier management of a facility is contracted by the public authority to a specialized operator for a Person or company who contracts to transport specified period and under specified conditions cargo from the port or place of discharge of a relating to performance criteria, economic sea-going or ocean-going ship to another desti- incentives, and maintenance and infrastructure nation by a different means of transport, such commitments. The public authority retains as a feeder vessel, truck, train, or barge.

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Optional cargo Plimsoll mark/load lines

Cargo that is destined for one of the ship’s dis- A series of horizontal lines and a circle with a charge ports, the exact one not being known horizontal line painted amidships of both sides when the goods are loaded. of the of a ship marking the level that must remain above the surface of the water for the Overcarriage vessel’s stability. The carriage of cargo beyond the port for which it was intended. Pontoon Flat-bottomed floating structure with a shallow Glossary draught. A flat tray, generally made of wood, but occasionally steel or other materials, on Pooling which goods can be stacked. There are two Sharing of cargo or the profit or loss principal sizes: the ISO pallet, which meas- from freight by member lines of a liner ures 1 x 1.2 meters, and the europallet at 0.8 conference. x 1.2 meters. Port dues (or harbor dues)

Maximum beam that allows vessels to pass Charges levied against a shipowner or ship through the locks of the Panama (specifi- operator by a port authority for the use of a cally used for dry bulk and container vessels). port (see also harbor dues). Permanent dunnage Port of refuge

Strips of timber fixed to the frames of a ship to Port, not on a ship’s itinerary, which the ship keep cargo away from the sides of the ship to calls at due to some unforeseen hazard at sea avoid damage and condensation. and where the ship may undergo repairs, refuel, or rescue cargo. Pilferage Port of registry Stealing of cargo. Place where a ship is registered with the Pilotage authorities, thereby establishing its nationality. The act of assisting the master of a ship in navi- Preentry gation when entering or leaving a port or in confined water. Presentation to the customs authorities of export or import declarations prior to the clear- Pilotage dues ance of goods. Fee payable by the owner or operator of a ship for the services of a pilot; the fee is normally Project financing based on the ship’s tonnage, draft, or length. Financing wherein the lender looks to a Platform (or flat) project’s cash flows to repay the principal and interest on debt, and to a project’s assets for A without sides, ends, or a security; also known as “structured financing” roof. Normally 20 or 40 feet long, it is used for because it requires structuring the debt awkwardly shaped cargo that cannot fit on or and equity such that a project’s cash flows in any other type of container. are adequate to service the debt.

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Rail-mounted gantry (RMG) or rail- Spotting mounted container gantry crane Placing a container where required to be loaded Rail-mounted gantry crane used for container or unloaded. acceptance, delivery, and stacking operations in a container yard. Glossary A piece of equipment designed to lift containers Reefer by their corner castings. or vessel designed to Stackcar transport refrigerated or frozen cargo. An articulated multiple platform rail car that Relay allows containers to be double stacked. To transfer containers from one ship to Stacktrain another. A rail service whereby rail cars carry containers Ro/ro stacked two high on specially operated unit trains. A shortening of the term “roll-on roll-off.” Ro/ro is a cargo handling method whereby ves- sels are loaded via one or more ramps that are lowered on the quay. Individual or firm that employs longshoremen (or dockers, dock workers, or port workers) to Rubber-tired gantry (RTG) or rubber- load and unload vessels. tired container gantry crane Stevedoring charges Gantry crane on rubber tires typically used for acceptance, delivery, and container stacking at a Fees for loading and stowing or unloading a ship. container yard. Sto-ro

Shed (also see warehouse) A vessel with capacity for as Covered area for the reception, delivery, consol- well as vehicles or trailer borne cargo. idation, distribution, and storage of cargo. Stowage Note: A warehouse usually points at longer term storage, whereas a shed usually is used for The average cubic space occupied by one ton shorter term storage. weight of cargo as stowed aboard a ship. Ship chandler

An individual or company selling equipment Type of equipment that picks up and transports and supplies for ships. containers between its legs for movement within a container terminal. Ship’s tackle Stripping (unstuffing) All rigging and so forth used on a ship to load or unload cargo. Unloading of a container. Side loader Supply chain

A lift truck fitted with lifting attachments oper- A management system that integrates ating to one side for handling containers. the sequence of activities from delivery of raw

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materials to the manufacturer through to the to reach their final destination, compared to a delivery of the finished product to the customer direct service from the load port of origin to the in measurable components. discharge port of destination. This method is often used to gain better vessel utilization and Tare weight thereby economies of scale by consolidating The weight of wrapping or packing; added to the cargo onto larger vessels while transiting in the net weight of cargo to determine its gross weight. direction of main trade routes. Terminal charge port

A charge made for a service performed in a ter- A port where cargo is transferred from one car- Glossary minal area typically referring to handling asso- rier to another or from one vessel of a carrier to ciated with receipt, delivery, or inspection of another vessel of the same carrier without the cargo via land-based operations. cargo leaving the port. Throughput charge Turnaround time

The charge for moving a container through a The time it takes between the arrival of a vessel container yard off of or onto a ship. and its departure from port; frequently used as Top off a measure of port efficiency.

To fill a ship that is already partly loaded with Twenty-foot equivalent unit (TEU) cargo. Typically occurs where there is a draught Container size standard of twenty feet. Two restriction at the first load port—the ship loads twenty-foot containers (TEUs) equal one FEU. a quantity of cargo corresponding to the per- Container vessel capacity and port throughput missive draught, then fills up at the second port capacity are frequently referred to in TEUs. where there is no restriction. Unitization Top stow cargo The consolidation of a quantity of individual Goods that are stowed on top of all others in a items into one large shipping unit for easier and ship’s hold because of their relatively low densi- faster handling through methods such as pal- ty and the probability that they would be - letizing, stripping, slinging and . aged if overstowed. Toplifter Unloader

Forklift truck capable of lifting a container by Port equipment employed to unload ships carry- means of its spreader. ing dry bulk cargo. (Note: Small movable and hoistable unloaders are sometimes referred to as Towage “vacuvators.”) Charges for the services of tugs assisting a ship Unmoor or other vessels in ports. To remove the ropes that attach a ship to the shore. Tramp line Unstuffing (or stripping) An ocean carrier company operating vessels on other than regular routes and schedules. Unloading of a container. Transshipment Variable cost

A distribution method whereby containers or Costs that vary directly with the level of activity cargo are transferred from one vessel to another within a short time. Examples include costs of

374 Glossary of Port and Shipping Terms moving cargo inland on trains or trucks, stevedor- Note: A warehouse usually points at longer ing in some ports, and short-term equipment leases. term storage, whereas a shed usually is used for shorter term storage. Vessel manifest Declarations made by international ocean carri- Glossary ers relating to the ship’s crew and contents at Document, issued by a to a ship- both the port of departure and arrival. All bills per, which serves as a receipt for the goods and of lading are registered on the manifest. evidence of the . Vessel traffic management system Wharf

Vessel control and management system (VTMS) Structure built alongside the water or perpendi- usually under the authority of the harbormas- cular to the shore where ships berth for loading ter, comprising equipment (such as radars, or discharging goods. tracking software, and radio communications), personnel (traffic operators), and regulations. Wharfage Most larger maritime ports have relatively The charge that an owner of a facility (terminal advanced vessel traffic management systems for or port) charges for the movement of cargo maritime safety, protection of the environment, through that facility. and coordination of marine services. Warehouse (see also shed) Sources: Brodie, Peter. Dictionary of Shipping Terms, Third Edition, 1997, and Sullivan, Eric, Covered area for the reception, delivery, consol- The Main Encyclopedic Dictionary, Fifth idation, distribution, and storage of cargo. Edition, 1996.

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