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Glossary of Technical Terms

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Glossary of Technical Terms THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS The glossary of technical terms contains explanations and definitions of certain terms used in this document in connection with our Group and our Group’s business. The terms and their meanings may not correspond to meanings or usage of these terms as used by others. “bareboat charter” an arrangement for the hire of a vessel whereby no administration or technical maintenance is included. The charterer obtains full possession and full control of the vessel “bunker” fuel, consisting of diesel or heavy fuel oil, used for vessels “charterparty(ies)” contract(s) for leasing of vessel “charter hire” the sum paid to the shipowner by a charterer for the use of vessel under a charterparty “classification society” an independent organisation that certifies that a vessel has been built, delivered and maintained in accordance with the rules of such organisation “CoA” contract of affreightment, a type of charterparty where it covers a series of voyage (instead of a single voyage) usually over a fixed period of time and the freight charges are pre-determined under the contract made between a shipowner and a charterer “demurrage” a penalty charge against charterer, shipper or receiver for failing to complete loading/discharging within time allowed according to charterparty “discharge” the act of taking cargo out of a vessel “dry-dock” a facility or establishment where a vessel can be removed from the water for inspection, maintenance and/or repair of submerged parts “dwt” an acronym for deadweight tonnage, a measure expressed in metric tons or long tons of a ship’s carrying capacity, including cargoes, bunker, fresh water, crew and provisions “flag state” the country where the vessel is registered —24— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS “freight charges” the sum paid to the shipowner by a charterer for the use of vessel under CoA “FSC” flag state control. The flag state of a commercial vessel is the state under whose laws the vessel is registered or licensed. The flag state has the authority and responsibility to enforce regulations over vessels registered under its flag, including those relating to inspection, certification, and issuance of safety and pollution prevention documents. As a ship operates under the laws of its flag state, these laws are applicable if the ship is involved in an admiralty case. In Hong Kong, the Marine Department is responsible for flag state control and enforcement under the Flag State Quality Control Scheme ”GPS” Global Positioning System, a global navigation system that provides location information “IACS” the International Association of Classification Societies, a non-governmental organisation which is allowed to develop guidance for the IMO “IMO” International Maritime Organisation, a United Nations agency that issues international trade standards for shipping “International Group of P&I International Group of Protection & Indemnity Clubs, an Clubs” unincorporated association of the 13 principal underwriting P&I Associations (Clubs) and their affiliated and reinsured entity “ISM Code” International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention “ISPS Code” the International Ship and Port Facility Security Code, an amendment to the SOLAS Convention “loading” the act of putting cargo on board a vessel “MARPOL Convention” the International Convention for the Prevention of Pollution from Ships “MLC” the Maritime Labour Convention, an international labour organisation convention —25— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS “OCIMF” Oil Companies International Marine Forum, a voluntary association of oil companies having an interest in the shipment and terminalling of crude oil and oil products and which mission is to be the foremost authority on the sale and environmentally responsible operation of oil tankers and terminals and promoting continuous improvement in standards of design and operation “off-hire” the period a vessel is temporarily unable to perform the services for which it is required under a time charter, or the period between two charters “P&I” protection and indemnity. This denotes the insurance coverage taken by a shipowner or charterer against third party liabilities such as oil pollution, cargo damage, crew injury or loss of life “P&I Association(s)” association(s) of shipowners who, by means of contributions, known as calls, provide mutual protection against liabilities not covered by insurance, such as claims for injury to crew and loss or damage to cargo. It is also abbreviated to “P&I club” or “pandi club” “Paris Mou” the Paris Memorandum & Understanding on Port State Control, recognized by maritime authorities including but not limited to Haly, United Kingdom & Great Britain and Nothern Ireland and Croatia “pmt” per metric tons “port charge” a general term which includes charges and dues of every nature assessed against a vessel, cargo and passengers in a port. Such charges can be classified into three categories: (i) charges in relation to the vessel such as vessel tonnage tax, vessel port dues, pilot fee and towage, (ii) charges in relation to the cargoes such as cargo port duties, loading and discharge fees and cargo handling fees and (iii) other expenses such as ship repairing costs and advances by the crew —26— THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE AND THAT THE INFORMATION MUST BE READ IN CONJUNCTION WITH THE SECTION HEADED “WARNING” ON THE COVER OF THIS DOCUMENT. GLOSSARY OF TECHNICAL TERMS “PSC” port state control. It is an internationally agreed regime for the inspection of foreign ships in other national ports by PSC inspectors. The remit of these PSC officers is to investigate compliance with the requirements of international conventions, such as International Convention for the Safety of Life at Sea (SOLAS), International Convention for the Prevention of Pollution From Ships (MARPOL), International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW), and the Maritime Labour Convention (MLC). Inspections can involve checking that the vessel is manned and operated in compliance with applicable international law, and verifying the competency of the ship’s master and officers, and the ship’s condition and equipment “SOLAS Convention” the International Convention for the Safety of Life at Sea “time charter” an arrangement whereby a shipowner hires out the vessel for a specified period, whereby the shipowner is required to provide and pay for the crew and other fixed cost of the vessel (such as insurance, repair and maintenance), while the charterer may, at its disposal, select the ports and direct the vessel where to go, and shall generally pay for all bunker, port charge, pilotages, canal charges and other costs that are directly related to the voyage. Charter hire under a time charter is generally charged on a per day basis for the charter period, and is customarily paid periodically in advance “Tokyo Mou” the Memorandum & Understanding on Port State Control in the Asia-Pacific Region, recognised by maritime authorities including but not limited to Hong Kong, Singapore, Australia and China “voyage charter” an arrangement for the hire of a vessel under which the shipowner is paid on the basis of the cargo movement from the loading port to the discharge port. The shipowner is generally responsible for paying both operating costs and voyage costs and the charterer is generally responsible for any delay at the loading or discharging ports —27—.
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