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Chartering terms are not always the most Finland simplest of things to understand. In order to Pietarsaari help you to understand cargo terminology, Rauma we have collected here for you some Belgium Germany chartering terms. Antwerp France Rostock Charleroi Le Havre Italy Bulgaria Ghent Rouen Varna These chartering terms have been chosen Vado Turkey Liege Spain from various sources and are used in today’s Venice Basiskele Kocaeli Tarragona China business. However, Euroports cannot take any Changshu liability for the content or use thereof. Chongqing Jining We sincerely hope that you will find this Zhuhai document useful!

Euroports Team

Euroports Finland Oy Hakunintie 23 • P.O.Box 68 • FI-26101 Rauma tel. +358 2 83 121 [email protected]• euroports.fi

Belgium Belgium • Brazil • Bulgaria • China • Finland • France • Germany • Italy • Luxemburg • Netherlands • Spain • Turkey • United Arab Emirates Chartering terms

Belgium • Brazil • Bulgaria • China • Finland • France • Germany • Italy • Luxemburg • Netherlands • Spain • TurkeyChartering • United Atermsrab Emirates 1 A/E or ACC/EXC – Accept / Except: Term for instance, BIMCO and one or more groups ties may include arranging a berth with the used by either the shipowner’s broker or the representing charterers is officially support- port authority, ordering pilots, tugs and labor, prospective charterer’s broker during the ne- ed by another association of shipowners, for entering the in at Customs and collect- gotiations for the charter of a ship to signi- instance, the Chamber of Shipping of the ing freight. fy that an offer or counter-offer is accepted United Kingdom, it is stated that the Cham- apart from certain clauses or details. These ber of Shipping of the United Kingdom has ”Agreed” Charter – The charter has been are then listed together with the amend- adopted” the charter; or on the other hand, agreed between BIMCO (or The Chamber of ments sought. if BIMCO wants to support one or the other Shipping of the United Kingdom or Cornite Cen- charter negotiated and ”agreed” between tral des Armateurs de France or other associa- AD VAL FRT. – Ad Valorem Freight: Freight the Chamber of Shipping of the United King- tions of shipowners) with one or more groups calculated on the value of the goods, ex- dom and one or more groups of charterers, of charterers or other institutions (for instance, pressed as a percentage thereof. then it is stated that the charter has been the Polish Coal Charter Committee, the Timber adopted by BIMCO. Moreover, a document Trade Federation of the United Kingdom, the A Addcomm – Address commission: Commis- issued by an organization of shipowners, for Syndicat National du Commerce Exterieur de sion payable by the shipowner to the charter- instance INTERTANKO, for use in a special Cereales, Paris or CMEA, Moscow). The printed AA – Always Accessible or Always Afloat: er. The reason for this system is sometimes trade without having actually been ’agreed” conditions of an ”agreed” charter must not be term in Charter-Party which stipulates that said to be that the charterer’s shipping de- with any particular group of charterers, may altered or deleted without the express approv- the charterer must not order the ship to a partment for bookkeeping purposes must be adopted by BIMCO. An adopted docu- al of the organizations who have agreed the port or berth where she would touch the bot- show some kind of income from their activi- ment is compulsory for the members of the charter. An ”agreed” document is compulsory tom or perhaps be unavailable at any time ties. State trading countries regularly include organization who have adopted it if it is an for the trade for which it is intended, e.x. the due to tidal variations. a 5 % address commission in their orders. ”agreed” document. sugar trade.

AAAA – Always accessible always afloat Additional – Amount of money Advance Freight – Freight payable at a time AGW – All going well paid to the shipowner by the voyage charter- agreed by the shipowner and the shipper, be- A/C – Account: This term is used when refer- er, shipper or receiver, as the case may be, fore the goods are delivered at the place of All in Rate – which is inclusive ring to a bank account and when allocating for failing to complete loading or discharging destination in the . of all surcharges and extras. This type of costs, such as in the phrase “for the a/c of before the agreed period of free time has ex- freight rate is to be found in the liner trade. charterers” pired. The daily rate of additional demurrage Advance on Freight Money advances by the is agreed in the Charter-Party. shipper to the master of a ship to pay for his Anniversary Date – This refers to the hour ABS – American Bureau of Shipping disbursements white in port. It is often re- and date the ship is delivered to the charter- Additional Freight – Extra charge imposed paid by deduction from freight. er and, therefore, hire is paid from that date, ABT – About: A conditional term used in in accordance with the contract of carriage either semi-monthly, monthly, or per 30 days, qualifiying cargo, time, bunkers or speed, by a shipping line on the shipper, received – The hiring of a ship, the through the end of the charter period. This when discussing cargo. “about” usually cov- of holder, as the case may be, term may also sometimes be used to de- is especially important when negotiating for ers a margin of 5 % either way (i.e. 25,000 for additional expenses incurred in dis-charg- scribe a contract for a series of voyages. an extension, or when ”fixing” in direct con- LT 5% more or less, at owner’s option); when ing the cargo. This charge generally applies tinuation. referring to a period of time, usually 15 days, when the port stipulated in the contract is AG – Arabian Gulf (used when vessels are although each case is considered on its own inaccessible or when the discharge there proceeding to Arabian ports) AP – All Purposes: Time allowed in a voyage merit, in connection with bunkers, “about” would result in unreasonable delay to the charter for loading and discharging com- has been interpreted to mean 5 % attitude; ship: under these circumstances, the ship- Agency Clause – Clause in Charter-Party, bined, expressed as a number of days and regarding speed, the tolerance is generally ping line may have an option under the con- which stipulates whether the ship’s agent at hours. Also referred to simply as purposes. one half knot. tract of carriage to proceed to another port the loading and / or discharging ports are to of discharge the cargo where extra costs may be nominated by the shipowner or the char- ”Approved” Charter – This is the expression Accomplished Bill of Lading – Original Bill be incurred. terer. used for charters whether ”agreed”, ”adopted” of Lading which has been surrendered to or ”recommended”. the carrying ship at the discharge port in ex- ”Adopted” Charter – If a charter ”agreed” Agency Fee – Fee payable by the shipowner change for the goods. in that way following negotiations between, or ship operator to a port agent, whose du-

2 Chartering terms 3 APS – Arrival Pilot Station - Location often As Agent Only - Form of words used with a against that used in discharging for the pur- to find a cargo near to the place of redeliv- used as the place of delivery of a ship by the signature to a Charter-Party of Bill of Lading pose of calculating demurrage or despatch. ery of the ship at the end of the period of the shipowner to the charterer at the commence- to indicate that the party signing is doing so If, for example, a charterer earns five days charter and is therefore obliged to ballast his ment of a time charter. The hire charge com- merely on behalf of a principal, whether is despatch at the loading port but there is a ship elsewhere. mences from the time of arrival unless the to be the master, owner or charterer of the period of three days demurrage at the dis- ship arrives prior to the first of the laydays. In ship, and has no rights or liabilities under the charging port, the charterer has a net claim Baltic Mercantile Et Shipping Exchange such a case, the hire charge commences at contract of carriage. for two days despatch money. – Institution, located in London, England, the beginning of the first layday or sooner at also known as the or simply the option of the charterer. As – in the condition in which the subject the Baltic, whose main function is to provide matter is. This expression is used when facilities for the chartering of by its Arbitration Clause – Clause in a contract, goods, or a ship, are offered for sale without members: chartering agents, acting on be- such as Charter-Party, which stipulates that repair or rectification. B half of charterers, negotiate with shipbrokers any dispute between the parties arising from who represent shipowners on the ”floor” of the contract be resolved by arbitration. The As is, where is – In the condition in which Back to Back Charter – Contract between the Baltic. Other activities include air charter- clause also specifies the place where the the subject-matter is and at the place where a charterer and a subcharterer whose terms ing, futures trading and sale and purchase of arbitration is to be held, the number of arbi- it is lying. This expression is used where and conditions are identical to the contract, ships. trators and their qualifications, and the pro- goods or a ship, are offered for sale without known as the head charter, between the cedure should one party fail to nominate an repair or rectification and with delivery to charterer and the shipowner. The purpose of Baltime – General purpose Time Charter arbitrator. the purchaser being at the place where the agreeing identical terms is to ensure that any Party published by BIMCO. goods are lying. money for which the charterer may be liable Arrived Ship – Requirement of all voyage to in the subcharter, for example despatch – The hiring or teasing of charters that the ship must have arrived ATS – All time Saved - term used in a voy- money, is recoverable from the shipowner. a ship for a period of time during which the before can commence. Where the age charter party to define one method by shipowner provided only the ship while the charterer has nominated a berth or dock, the which despatch money is calculated, that Backfreight Freight payable to a shipowner charterer provided the crew together with all ship must have arrived at that berth or dock. is, by deducting time used for loading and/ for the carriage of goods back to the port of stores and bunkers and pays all operating When a port is nominated, the ship must or discharging, as the case may be, from a loading or to another convenient port when costs. This type of charter is favoured by per- have arrived at the pod in this context in cas- theoretical time up to the expiry of laytime the vessel is unable to reach the port of sons or companies who wish to own a ship es where there is no berth available and the which includes excepted periods, for exam- destination because of an excepted peril or for investment purposes but who do not have ship is obliged to wait, a vessel. is an ”arrived ple a charterer may be allowed 10 days for because the fails to take delivery the desire or expertise to operate the ship. ship” as soon as the following conditions loading. He calculates the expiry of laytime of the goods or provide instructions for their Similarly, it is favoured by persons or compa- have been met: taking, account of excepted periods such as disposal. nies who have a particular requirement for a 1. The vessel must have arrived at weekends, and arrives at a theoretical num- ship and the expertise with which to operate the loading or discharging berth ber of calendar days, say 15. Should he only BAF – Bunker adjustment one but without the wish or ability to pur- or port as stipulated in the use four laydays to load, he is entitled to II chase. A ship hired out in this way is said to charter. days despatch money. Bale / Bale capacity – Total cubic capacity be on bareboat charter. Also referred to as a 2. The vessel must be fully of a ship’s holds available for the carriage of demise charter or a charter by demise. prepared to load or discharge. ATDN – Any Time Day or Night - Term used in a solid cargo which is not capable of filling the 3. Notice of readiness in writing, time Charter-Party to signify that the shipown- spaces between the ship’s frames it is ex- Bareboat Charterer – Person or compa- a prescribed, must have been er may deliver the ship or that the charterer pressed in cubic feet or cubic meters. Where ny who charters a ship for a period of time, given to shippers or . may redeliver the ship, as the case may be, a cargo is free flowing and is capable of filling provides crew, bunkers and stores and pays 4. If berth nominated by charter at any time of the day or night and not neces- the spaces between the ship’s frames, the all operating costs. Also known as a demise is not available, then vessel sarily during normal working hours. This term corresponding cubic capacity is known as charterer or charterer by demise. can be considered ”arrived” is very often followed by SHINC (Sundays and the grain or grain capacity. when NOR is tendered. holidays included). Bareboat Charter-Party – Document con- BB – Ballast Bonus – sum of money paid by taining the contract between the owner of a ASBA – Association of Ship Brokers and Average to Laytime – As a voyage charter- a time charterer to a shipowner in recogni- ship and the demise charter, and signed by Agents (USA), Inc., New York. er, to offset the time used in loading cargo tion of the fact that the shipowner is unlikely both, in which are all the terms and condi-

4 Chartering terms 5 tions such as the period of the charter, the charging, as the case may be, does not start ships to trade at its ports if they have traded clause has, however, been held to be invalid rate of hire, the trading limits and all the to count until the ship reaches the berth, at ports in the countries on that list. in the American courts when incorporated rights and responsibilities of the two parties. unless berth is occupied in which case time with a . Also referred to as a demise Charter-Party. starts counting when NOR is tendered. Blt Built Box Rate – Rate of freight per shipping Barecon ’A’ – Standard bareboat Char- Berth Standard of Average Cause - Clause B/N – Booking Note - Document containing container, as opposed to per ton or per cu- ter-Party published by BIMCO. in a Charter-Party setting out the contribu- the terms and conditions of a contract be- bic meter. Since a box rate is unaffected by tion to be made by the charterer to any claim tween a shipper and a shipping line for the the actual quantity loaded into the contain- Barecon ’B’ – Standard bareboat Char- for loss or damage to cargo for which the carriage of goods on a particular ship be- er, it is in shipper’s interest to load as much ter-Party used for newbuildings financed by shipowner is Liable. tween specified ports or places. cargo as possible, subject to the maximum mortgage, published by BIMCO. allowed, to effectively reduce the cost of car- Bill of Lading to Order – Bill of Lading which B.N.A. – British North America. riage for each ton or cubic meter. Base Cargo – Minimum quantity of cargo requires an endorsement by a consignee required by a shipping line to make it worth- before goods can be delivered to him by the Boffers or BO – (asking) best offers. Break Bulk (to) – To commence to dis- while to call at a particular port of loading. carrying ship. Also called a ”to order Bill of charge a bulk cargo. It is sometimes a condi- Lading”. Book Space (to) – As a shipper or his agent, tion of carriage that freight, or some percent- Base Rate – Basic rate of freight of a ship- to reserve space in a ship for the carriage of age of it, becomes payable on breaking bulk. ping line or liner conference onto which are BIMCO (The Baltic and International Mar- certain defined goods from a place of load- added, or on which are calculated, the vari- itime Council) – Association whose main ing to a place of discharging. Breakbulk – Relating to cargo lifted on and ous surcharges such as the currency adjust- object is to promote and defend the interests off ships one piece or bundle at a time by ment factor or bunker surcharge. of shipowners. It also has a membership of Booking – Reservation made by a shipper means of cranes or derricks, as opposed shipbrokers and has been responsible for or his agent with a carrier for the carriage of to cargo shipped on trailers or in shipping BBB -- Before Breaking Bulk - A condition of contributing to the creation of a large num- certain defined goods between defined plac- containers. Such goods may be described carriage that freight, or some percentage of ber of Charter-Parties and other shipping es. as breakbulk cargo; the ships which carry it, becomes payable before breaking bulk documents. them are sometimes referred to as break- (discharge of a vessel commences). Booking List – List of all cargo bookings bulk ships which are operated on a regular Bimcosale – Standard bill of sale published for a particular sailing. It is complied by a basis between advertised ports, provide a BD – Bundle by BIMCO, used for the purchase of ships. shipping line from lists sent in by the line’s breakbulk service. The term breakbulk is of- agents responsible for taking bookings for ten used to denote the opposite of contain- Bearer of a Bill of Lading – Person who ten- B/L – Bill of Lading – Document issued by the various ports on the ship’s itinerary. erized. ders the Bill of Lading to the ship at the place a shipowner to a shipper of goods. It serves of discharge in exchange for the goods. Bills as a for the goods, evidence of the Both to Blame Collision Clause – Clause in Broken stowage – Amount of unused space of lading are often made out to bearer. contract of carriage and document of title. a Bill of Lading or charter party which stipu- in a ship or a hold by virtue of the irregular As a receipt it contains the description and lates that, in the event of a collision between shape of the cargo. For example, the space Bends – Both Ends – At both loading and quantity of the goods as well as suitable no- two ships where both are at fault, the owners taken up by a bundle of bars of irregular discharging ports. This term is often used tations if the goods are not in apparent good of the cargo must indemnify the carrying ship length would be calculated on the basis of together with GSAAAAB (good safe always condition when received by the ship. As evi- against any amount paid by the carrying ship the longest length, as if all the bars were of afloat always accessible berth), with OSP dence of the contract of carriage, the Bill of to the non-carrying ship for damage to that that length. (one safe port), with OSB (one safe berth) Lading contains the terms and conditions of cargo. This clause arises because, under and to qualify the prices of the bunkers on the contract or, where the contract is repre- American law, a cargo owner is not able to Brokerage – Fee or commission payable delivery and redelivery in a time charter. Also sented by a Charter-Party, a reference to the make any recovery from the carrier for dam- by a shipowner to a shipbroker for success- used to state agency determination (ex. Car- Charter-Party as a document of title, the to age resulting from negligent navigation but ful negotiation of a charter. It is normally rier’s agents bends). order” Bill of Lading is used by a third party may instead sue the non-carrying ship which expressed as a percentage of the freight or to take delivery of the goods from a ship. in turn seeks recovery from the carrying ship hire and demurrage. Brokerage may or may Berth Charter Party – Charter-Party in in proportion of his fault. This would render a not be payable, according to the terms of the which a particular berth is nominated by the Black list – List of countries published by carrier indirectly liable for a loss for which he Charter-Party, should the voyage or period of charterer. The time allowed for loading or dis- a particular government which will not allow is not directly liable to the cargo owner. The the charter not be completed.

6 Chartering terms 7 B/S – Bunker Surcharge Extra charge ap- Shipowners’ associations) Code. It is to en- voyage Charter-Party or time Charter-Par- CFR – Cost and Freight – Sales term denot- plied by shipping lines, or set by liner confer- sure that the revenue of the shipping lines is ty, by which a ship must be available to the ing that the seller is responsible for arrang- ences on behalf of their members, to reflect unaffected by the lines in relation to the tariff charterer at the agreed place at the com- ing and paying for the carriage of the goods fluctuations in the cost of bunkers. This sur- currency. The code provides formulae, adopt- mencement of the contract. If the ship is to the agreed port of discharge. Risk of loss charge is expressed either as an amount per ed by many conferences, for calculating the not available by that date, the charterer may and damage generally passes to the buyer freight ton or as a percentage of the freight. CAF and, since the values of currencies can have the option to cancel the charter under when the goods pass ship’s rail at the port Also referred to as bunker adjustment factor move upwards as well as downwards, the certain circumstances and clauses of the of loading. (BAF), or fuel oil surcharge (FOS), or fuel ad- CAF which is normally expressed as a per- Charter-Party. justment factor (FAF). centage of the freight, maybe negative as CFS – Container Freight Station - Place well as positive. Thus a tariff rate of USD 100 Cargo Sharing – Reserving by the authori- where are grouped togeth- BT – Berth Terms – Expression signifying becomes USD 108 when subject to a plus 8 ties of a country of the ocean carriage of its er and packed into a shipping container or that the contract of carriage is subject to the per cent CAF. exports and imports to the ships of its own where such consignments are unpacked. customs and conditions of the ports of load- fleet and that of the countries with which it ing and discharging. Calendar Month – A ”month” in a time char- trades, usually in equal proportions, often al- Charter – The chartering or hiring of a ship. ter usually means a calendar month, which lowing the ships of other countries a smaller A ship which is hired out is said to be on extends from the given day of the month share. charter and the time during which a ship is to the day of corresponding number in the hired out is known as the period of the char- C next month. If that next month, being short- Cargoworthiness – Fitness of a ship to carry ter. er, does not have a day of that number, the a particular cargo. C.A. – Central America (i.e. - WCCA or ECCA calendar month expires on the last day of Charter by Demise – See bareboat charter. depending which side). that month. For example, if a ship is deliv- Cargoworthy – Said of a ship, being fit to ered on August 31st, the 1st month’s hire carry a particular cargo. Charter in (to) – To hire a ship from a ship- CABAF – Currency and bunker adjustment expires September 30th; the next month’s owner. This expression is sometimes used factor surcharge applied by some shipping hire would be payable on October 31st, not Carrier – Party who enters into a contract of more specifically to denote that the ship is lines, and set by some liner conferences on October 30th. carriage with a shipper. The carrier may be being chartered for a specific voyage or pur- behalf of their members, which consists of the owner or charterer of a ship. pose, supplementing a shipping company’s a currency adjustment factor and a bunker Canal Transit Dues – charge levied by a ca- fleet whose ships are fully committed or more adjustment factor combined. This surcharge nal authority, such as that for the Suez Ca- Carryings – Quantity of cargo carried over a profitably employed elsewhere. is normally expressed as a percentage of the nal, for transiting. This charge is based on period of time by a shipping line or by all the freight rate. the ship’s tonnage. members of a liner conference. This quantity Charter out (to) – To hire a ship out to a is a factor in determining the profitability of charterer. This expression is sometimes used CAD – Cash Against Documents – Term of Cancellation (of a charter) – Repudiation the services and the need, if any, to apply an to denote, more specifically, the hiring out of sale whereby the buyer receives the commer- of the contract, most often by the voyage increase to the freight rates. a ship which is temporarily surplus to the re- cial documents, including the Bill of Lading, charterer when the ship misses her cance- quirements of a shipowner or shipping com- which is the document of title, on paying the ling date, or by a time charterer when the CBR – Commodity Box Rate - Freight rate per pany. seller for the goods. This term is also used ship is off hire for more than the period stip- shipping container for a particular commodity. to qualify a contract of carriage in which the ulated in the Charter-Party. Charterable – Said of a quantity of goods carrier releases the Bill of Lading to the ship- Centrocon – Voyage Charter-Party used for that is sufficient to fill a ship taken on charter per in exchange for the goods. Cancellation Clause – charter Party clause shipments of grain from the River Plate. terms. specifying the last date known, as the can- CAF – Currency Adjustment Factor - sur- celing date, on which a ship must be avail- Cesser Clause – Clause in a voyage Char- Charterer – Person or company who hires charge applied to freight rates by shipping able to the charterer at the agreed place. If ter-Party which seeks to relieve the charter- a ship from a shipowner for a period of time lines or set by liner conferences on behalf of the ship arrives after the canceling date, the er of all responsibility under the contract (see Time charterer) or who reserves the their members. The purpose of the currency charterer may have the option to cancel the once the cargo has been shipped. Often this entire cargo space of a ship for the carriage adjustment factor is embodied in the E.S.C. contract. clause incorporates a provision for the ship- of goods from a port or ports of loading to a (European Shippers’ Councils / C.E.N.S.A. owner to have a on the cargo for freight, port or ports of discharge (see Voyage char- (Council of European and Japanese national Canceling Date – Last date, agreed in a deadfreight and demurrage. terer).

8 Chartering terms 9 Charterer’s Market – Weak market, with tageous as possible to his principal. It must against money advanced for the purchase of goods from the time they are received into comparatively low freight rates. be stressed that a Charter-Party that has not the goods described therein. his care until the time they are delivered at been carefully drafted may cause one of the destination. Chopt – In Charterers’ Option – Term in a parties considerable loses. Clean Receipt – Receipt given by anyone Charter-Party which stipulates that the char- receiving cargo into his care or possession Common Carrier – Person or company ad- terers have a choice in specific circumstanc- CIF Cost and Freight – Sates bearing no clausing or notation indicating vertising a service involving the carriage es. For example, the contract may allow for term denoting that the setter is responsible loss or damage, thus indicating that the of goods to and from ports on a particular discharge at port ”A” or port ”B” in charter- for arranging and paying for the carriage of goods were received in apparent good order route. A common carrier is required by law to ers’ option, with the provision that one port the goods to the agreed port of discharge and condition. accept all cargo offered. Except dangerous is to be declared to the shipowner by a cer- and for the insurance of the goods covering ones, and to make a reasonable charge for tain point in the voyage. the period of carriage involved in the con- Clear Days – Used with a number to denote their carriage. tract of sale. The risk of loss or damage gen- the period of time excluding the first and the Charterer’s Agent – ship’s agent nominat- erally passes to the buyer when the goods last days, for example ten clear days. Common Short Form Bill of Lading – Type ed by the voyage charterer in accordance pass ship’s rail at the port of loading. of Bill of Lading which may be used by any with Charter-Party. Although nominated by Closed Conference – Liner conference in shipping line since neither the name of the the charterer, the agent is paid by, and is CIP – Freight of Carriage and Insurance Paid which the member lines vote on the admis- line nor its conditions of carriage are print- responsible to, the shipowner, can also be to – This term is the same as CPT but with sion of a new line. The purpose of this is to ed on it; the name is typed on and a printed applicable to agents appointed at a load or the addition that the seller has to procure restrict the number of ships in a particular clause states the full terms and conditions discharge port by request of the actual cargo transport insurance against the risk of loss trade. are available on request. interests. or damage to the goods during carriage. The seller contracts with the insurer and pays the Closing date – Final date for delivering car- Competitive Broker – A broker engaged in Charterer’s Bill of Lading – Bill of Lading insurance premium. go to a liner ship. Usually considered to be efforts to bring together an owner’s confiden- issued by a charterer and signed by him or the first day of the laycan or shipping period. tial broker with the broker of a suitable char- his agent. Under certain circumstances, the Clause Paramount – clause in a Bill of Lad- Can also be a cargo cutoff date. terer is engaged in competitive chartering charterer who signs his own bills of lading ing or Charter-Party which stipulates that and is called a competitive broker. may be deemed to be the carrier, thus taking the contract of carriage is governed by the COA – Contract of Affreightment – is usually on all responsibilities of a carrier. or Hague-Visby Rules or the en- a contract for the carriage of a specified type Conbill – Bill of Lading approved by the BIM- actment of these rules of the country having and quantity of cargo, covering two or several CO for use when no Charter Party is signed. Chartering Agent – Shipbroker that acts jurisdiction over the contract. shipments, and running over a long period. on behalf of a charterer in the negotiations In the COA it is the cargo and not the vessel Conference – Two or more shipping lines leading to the chartering of a ship. He is the Clause Bill of Lading – Bill of Lading con- that has a central position. operating a service in common between counterpart to the owner’s broker, the ship- taining one, or more than one, superimposed designated geographical areas. The lines owner who acts on behalf of the shipowner. clause which may either specify a defect to Coasthire – Time charter-Party, the full agree a set of freight rates and any special the cargo or its packing or may be any com- name of which is the Chamber of Shipping rates for shippers and each line charges the Charter Party Bill of Lading – Bill of Lad- ment of the master regarding the carriage Coasting and Short Sea daily Hire Charter same as the others. The ships used are of ing issued for a shipment of cargo on a char- of the goods, for example that the weighs or Party. types suitable for the trade. Unlike tramp tered ship when it is intended that the re- contents of a are unknown to shipping where freight rates are function of ceived be bound by the terms and conditions him, or that the goods shipped on deck are Coasting Broker– Shipbroker who special- daily supply and demand, conference rates of the Charter-Party. A clause to this effect at shipper’s risk. izes in the negotiation of charters for coast- are relatively stable: base rates are altered incorporating the date and place of signature wise or short sea voyages. by means of a general rate increase which in of the Charter-Party appears on the Bill of Clean Bill of Lading – Bill of Lading which many cases is once a year. Lines in a con- Lading. contains no superimposed clause specifying Combined Transport Bill of Lading or Com- ference are governed by the rule of member- any defect to the cargo or its packing; it in- bined Transport Document – Document ship, which may include rights to load or dis- Charter Party Broker – A broker that will dicates that the cargo has been received by evidencing a contract between shipper and charge at certain ports, and pooling of cargo, contract at the actual market level, but he the ship in apparent good order and condi- a shipping line for carriage of goods on a voy- also referred to as a freight conference or a will always try to phrase every single Char- tion. Clean bills of lading are often required age involving at least two legs. Normally, the shipping conference or a liner conference. ter-Party clause so that it wilt be as advan- by banks who use them as collateral security issuer of this document is responsible for the

10 Chartering terms 11 Constant – Refers to those items of a more Consignee – Person to whom goods are to conditions of that offer, by virtue of a party Cst. Centistokes – Measure of the viscosity or less permanent nature, such as crew and be delivered by the carrier at the place of making a counter-offer, the offer itself is no of oils. The greater the number of centis- effects, stores, spare parts in excess of rule destination. longer binding. Offer and counter-offer form tokes, the higher the viscosity of a grade of requirement (for example, a spare propeller the basis of the negotiations involved in oil. and/or a spare tail shaft, neither of which – Person who places goods in chartering. are required by the rules), which have not the care of a carrier for delivery to a person been included in the lightweight and con- known as a consignee. CP – Charter-Party – Document contain- sequently must be deduced from the dead- ing all the terms and conditions of the con- D weight when determining the deadweight Consolidation – The grouping together of tract between a shipowner and a charterer, available for cargo. The word ”constant” it- several compatible consignments into a full and signed by both parties or their agents, DIA – Disbursements Account – Account self is a misnomer, since the constant is not container load. Also referred to as groupage. for the hire of a ship or the space in a ship. rendered by a ship’s agent at a port to the forever constant but may vary from voyage to Most Charter-Parties are standard forms with shipowner for all sums paid out in respect of voyage depending on the amount of stores Contractor – Person or company having a printed clauses and spaces or boxes in which the ship’s call at the port such as pilotage, and spares on board. loyalty contract with a liner conference and details relating to the individual charter, such towage, towage, any cash advance to the entitled, subject to having complied with the as freight, laytime, demurrage, the ship’s master, supply of provisions and stores and CT – Conference Terms Qualification to a terms of the contract, to a contractor’s re- construction, speed and consumption, are in- the agency fee. known as vouchers freight rate which signifies that it is subject bate. serted. The printed documents may be varied support the account. to the standard terms and conditions of the and/or added to by agreement of the two par- particular liner conference, These are nor- COP – Custom of the port – Established ties. Sometimes spelled Charter-Party. Damage for Detention – Sum of money mally set out in the conference’s tariff. practice at a port, which becomes part of a payable to the shipowner by the voyage char- contract of carriage unless otherwise provid- CPT – Freight or Carriage Paid to – Means terer, or anyone who becomes a party to the Congenbill – Bill of Lading intended to be ed for in the contract. Frequent examples are that the seller pays the freight for the car- terms of the charter, for failing to load and/ used with Gencon charter parties. One of the daily rate of loading and discharging, and the riage of the goods to the named destination. or discharge cargo within the time allowed in Clauses on this Bill of Lading states that it in- point where a carrier’s responsibility ends in However, the risk of loss and damage to the the Charter-Party. It is payable for each day corporates all the terms of the Charter-Party. a liner terms contact. goods, as well as of any cost increases, is or part thereof until completion of loading transferred from the seller to the buyer when or discharging, as the case may be. Unlike Congestion Surcharge – Extra charge ap- Copy Bill of Lading – Reproduction of a Bill the goods have been delivered into the cus- demurrage, the amount is not agreed in ad- plied by shipping lines, or set by liner confer- of Lading intended to be used for administra- tody of the first carrier and not at the ship’s vance, but is normally set by the Court either ences on behalf of their members, to reflect tive purposes only and not for taking delivery rail. It can be used for all modes of transport at the same rate as demurrage if such a rate the cost of delay to their ships at a particular of the goods or for transferring title to them. including multimodal operations and con- has been incorporated into the Charter-Par- port cause by congestion. tainer or roll-on/roll-off traffic by trailers and ty, or based on the daily running cost of the Count (as laytime) (to) – To be included in . When the seller has to furnish a Bill ship plus any profit which shipowner might Conlinebill – Liner Bill of Lading published the calculation of laytime in a voyage charter. of Lading, or carrier’s receipt, he dul- reasonably have expected. These damages by BIMCO. Whether a period, such as during a week- ly fulfills his obligation by presenting such a apply when the Charter-Party contains no end or a strike, counts as laytime is subject document issued by the person with whom provision for demurrage or when the agreed Conline Booking Note – Liner Booking Note to the agreement of shipowner and charter- he has contracted for carriage to the named period of demurrage is exceeded. published by BIMCO. er save that, once all the time allowed has destination. been used, the remaining period until com- Deadfreight – Amount of money payable Consecutive Voyages – Successive voy- pletion of loading or discharging, as the case CQD – Customary Quick Despatch – Means by a shipper or charterer to a shipowner or ages of a ship on charter to one party. The may be, counts without exception. A typical that the charterer must load and / or dis- shipping line for failing to load the quantity of Charter-Party may stipulate the number of voyage Charter-Party clause might stipulate charge as fast as is reasonably possible in cargo stipulated in the contract of carriage. voyages or the total quantity of cargo to be that time between 1700 hours Friday and the circumstances prevailing at the time of Deadfreight is normally payable at the full carried or the total period during which the 0800 hours Monday should not count, even loading or discharging. There is no provi- freight rate but may be reduced by the load- shipowner performs the maximum number if used. sion for demurrage or despatch. From the ing and/or discharging expenses if these of voyages. Consecutive is often abbreviated standpoint of an owner, it gives very little were included in the freight. to consec. Counter-offer or Counter – Response to an assurance, if any, of a quick load and/or dis- offer which in some way varies the terms or charge.

12 Chartering terms 13 Deadweight Cargo – Cargo of one metric and any notations by the charterer concern- and ”ex quay” (duties on buyer’s account), in read U5D 5,000 dhd, which signifies that de- ton which measures one cubic meter or less. ing the failure of the ship to comply in any which the liability to clear the goods for im- murrage would be at the rate of U.S. Dollars Freight on deadweight cargo is generally pay- respect with the terms of the Charter-Party. port are to be met by the buyer instead of by 5,000 per day and despatch money at U.S. able on the weight, that is, per metric ton. the seller. Parties are recommended always Dollars 2,500 per day. – Document issued by a lin- to use the full descriptions of these terms Deck Cargo – Cargo carried on, and secured er company’s agent authorizing the party namely ”ex quay” (duty paid) or ”ex quay” Dirty Bill of Lading– Bill of Lading contain- to, the open deck of a ship. Cargoes tradi- named in it to take delivery of specific cargo (duty on buyer’s account), or else there may ing one, or more than one superimposed tionally carried on deck include dangerous from a ship. It is normally issued in exchange be uncertainty as to who is to he responsible clause specifying a defect to the cargo of goods, timber and goods, which are too large for an original Bill of Lading. for the liability to clear the goods for import. packing, noted at the time the goods are re- for the hatchway. Consideration needed ceived by the ship. Such a Bill of Lading is when contemplating carrying cargo on deck Dem – Demurrage - Amount of money paid to DESP – Despatch or Despatch Money - also referred to as foul or unclean. are: the strength of the deck, the strength of the shipowner by the charterer, shipper or re- Amount of money the rate of which is agreed the hatch covers if cargo is stowed on the top ceiver, as the case may be, for failing to com- in advance, payable by the shipowner to the Disbursements – Sums paid out by a ships’s of them, the safety of the crew and their abil- plete loading and / or discharging within the charterer, shipper or receiver, as the case agent on behalf of a shipowner at a port and ity to go from one part of the ship to another, time allowed in the Charter-Party. The rate of may be, for loading and/or discharging in recovered from the shipowner by means of a the need to ensure that cargo is not stacked demurrage, normally an amount per day, is less than the time allowed; normally des- disbursements account. Typical expenses in- so high as to impede navigation. Deck car- agreed in the Charter-Party. Some charters patch money, if a provision for it has been clude pod charges, pilotage, towage and the goes are carried at the risk to the charterer, specify that, after a certain period of demur- made, is at the same rate as, or half the rate agent’s fee. shipper or Bill of Lading holder, as the case rage, either additional demurrage or damag- of the rate of demurrage agreed in the Char- may be. es for detention become payable. When de- ter-Party. Disponent Owner – Person or company who murrage becomes payable, it is said of a ship controls the commercial operation of a ship, Delivery (of) a cargo – The conveying of that she is on demurrage. Once a ship is on DES – Delivery ex ship – This means that the responsible for deciding the ports of call and goods by a carrier to the received or Bill of demurrage, no deductions are made for the seller shall make the goods available to the the cargoes to be carried, very often, the dis- Lading bolder at the place of destination in excepted periods, such as weekends, in the buyer on board the ship at the destination ponent owner is a shipping line, which time the contract of carriage. calculation of the demurrage charges; hence named in the sales contact. The seller has to charterers a ship and issues its own liner it is said that ”once an demurrage, always on bear the full cost and risk involved in bring- bills of lading. In most cases, Industrial Mar- Dely – Delivery (of a ship) – Placing of a time demurrage”. ing the goods there. itime Carriers are acting as ”disponent own- chartered ship by the shipowner at the dis- ers”. posal of the charterer at the beginning of the Demise Charter -- See bareboat charter. Detention Charge – Charge payable by a period of the charter, at the time and place shipper or receiver to a shipping line for de- Dock Dues – Charge levied against a ship- agreed. The place of delivery is often a loca- Demise Clause – Clause in a Bill of Lading taining equipment or a vessel beyond the owner or ship operator by a port authority for tion, such as a pilot station, where it is rel- stipulating that the contact of carriage is time allowed. the use of a dock. atively easy to verify the time of arrival and between the shipper or Bill of Lading holder hence the time when the charter commenc- and the shipowner. Bills of lading issued by Deviation Clause – Clause in a Bill of Lading Door to Door – Said of a service or freight es. Normally, an on hire survey is carried out charterers of a ship on behalf of the own- or Charter-Party allowing the shipping line or rate provided by a container shipping tine as soon as practicable in order to determine er and master often contain this clause. It shipowner to deviate from the agreed route whereby goods are loaded into a shipping the condition of the ship and the quantity of should be noted that this clause is inconsist- or normal trade route. This clause varies from container at the shipper’s premises and not bunkers on board at the time of delivery. ent with the laws of certain countries and contract to contract and may permit the ship unloaded until they arrive at the consignee’s may therefore be invalid in those countries. to call at unscheduled ports for whatever rea- premises. Delivery Certificate – Document, signed by son, or to deviate to save life or property. or on behalf of the shipowner and the char- DEQ – Delivered ex quay – This mean that DOP – Dropping Outward Pilot - Frequently terer, certifying the time, date and place of the seller makes the goods available to the DHD – Demurrage Half Despatch – This used provision in a time charter to determine delivery of the ship, that is, the placing of buyer on the quay at the destination named term, often found in voyage charter negoti- the time and place of redelivery of a ship to the ship at the disposal of the time charterer in the sales contract. The seller has to bear ations, signifies that despatch money is to the owner by the charterer. The hire ceases at the beginning of the period of the char- the full cost and risk involved in bringing the be paid at the daily rate of demurrage. The at the moment the pilot disembarks. ter. The certificate also states the quantity goods there. There are two ”ex quay” con- rate of demurrage precedes this term in the of bunkers on board at the time of delivery tracts in use, namely ”ex quay”(duty paid) offer. For example, an offer by telex might

14 Chartering terms 15 Dry Weight – Actual weight of a bulk cargo Endorse a bill of Lading – To sign over a Bill Expiry of Laytime – Moment when the time normally expressed as an amount of money less an allowance for moisture content. of Lading to another, thus transferring title to allowed in the Charter-Party for loading and / per each ton for each until of length, for ex- the goods described in the Bill of Lading to or discharging, as the case may be, has been ample each foot or part of a foot in excess of DWCC – Deadweight Cargo Capacity or that party. used up. If loading or discharging, as the the specified length. Deadweight Carrying Capacity - Weight of case may be, has been used up. If loading cargo, which a ship is able to carry when Enrollment (U.S.) – The document issued or discharging has not been completed, de- immersed to the appropriate load line, ex- by the U.S. Government to vessels under U.S. murrage or damages for detention become pressed in tons. flag engaged solely in domestic or coastwise payable. F trade, as distinguished from the register, DWT or DWAT – Deadweight or deadweight which is confined to vessels engaging in for- Extension of a Charter – Prolonging of the FAC – Fast as Can – Term used in a contract all told. Difference between a ship’s Loaded eign trade. period during which a ship is on time charter. of carriage, particularly in those of shipping and light displacement, consisting of the to- An option to extent the charter may be incor- lines, to denote that the shipper must supply tal weight of cargo, fuel, fresh water, stores ETA – Estimated Time of Arrival. porated into the Charter-Party, very often on the cargo as fast as the ship can load or that and crew which a ship can carry when im- the same terms but possibly at a different the receiver must take delivery as fast as the mersed to a particular load line, normally ETC – Estimated Time of Completion. rate of hire. ship can discharge. her summer load line. The deadweight is ex- ETD – Estimated Time of Departure. pressed in tons. Extension to the Canceling Date – Agree- FACCOP – Fast as Can Custom of the Port – see ETR – Estimated Time of Readiness. ment by the charterer to a later date than FAC Fast as Can and COP - Custom of the Port that agreed in the Charter-Party by which a ETS – Estimated Time of Sailing. ship must tender notice of readiness to the AFF – Fuel Adjustment Factor – see bunker E charterer that she has arrived and is ready to surcharge. EXW – ex. Works – Sales term denoting load. If a ship is likely to be delayed in reach- Economic Speed – This is the speed of a that the seller is responsible for making the ing the load port, the shipowner may ask the FAK Freight All Kinds – Single freight rate vessel producing the best possible financial goods available at his works or factory. The charterer to extend the canceling date. If the which is charged irrespective of the com- results for the owners, giving proper consid- buyer bears that cost of loading the goods charterer agrees, the contract is amended modity. eration to the following: onto the vehicle(s) and delivering them to accordingly, if not, the charterer may have the destination. The risk of toss and damage the option to cancel the charter either before FAS – Free Alongside – Under this term the 1. The prices of bunkers in the to the goods generally passes from the seller the canceling date by mutual consent or af- seller’s obligations are fulfilled when the ports en route. to the buyer at the time that they are made ter the canceling date within a time specified goods have been placed alongside the ship 2. Fuel consumption of the vessel available. in the Charter-Party. Alternatively, the ship- on the quay or in lighters. This means that at various speeds. owner may be obliged to present his ship at the buyer has to bear all costs and risks of 3. Daily operating costs. Excepted Period – Period during which the toad port, however late. loss or damage to the goods from that mo- 4. The net freight per ton of cargo. any time used to load or discharge does not ment. It should be noted that unlike FOB., 5. Operating profit per day. count for the purpose of calculating demur- Extension to Suit Time – an extension by the present term requires the buyer to clear 6. Subsequent available rage or despatch, other than by prior agree- the carrier of the period within which cargo the goods for export. employment of vessel and ment (see Unless used). Such periods must interests must bring a lawsuit for any claim anticipated freight. be expressly stated in the Charter-Party and which they may have under the contract of F/C – Full and Complete Cargo – This ex- may include weekends, public holidays and carriage. This extension may be granted pression characterizes a full cargo, in ac- EIU – Even if Used – Term used in a voyage time used shifting from anchorage to berth. at the request of cargo interests when the cordance with the custom of the port, which Charter-Party which that time used to toad It should be noted that, once laytime has ex- claim has not been fully quantified and pro- wilt either bring the vessel down to her maxi- or discharge, as the case may be, during ex- pired, time counts during excepted periods in vides the parties with further time to settle mum permissible draft or fill the vessel cubi- cepted period is not deducted from the time the calculation of demurrage. the claim out of court. cally as the case may be. allowed. A Charter-Party might stipulate that the time does not count from 1700 Friday Exceptions Clause – Clause in a Char- Extra-length Surcharge – Extra charge set FCC – First Class Charterers – a commonly to 0800 hours Monday, even if used. In this ter-Party or Bill of Lading that exonerates the by liner conferences on behalf of their mem- used, meaningless phrase, which should be case, even if charterers choose to load or carrying ship from responsibility for damage bers or applied by shipping tines on cargo avoided. Better to say, if you need to keep discharge in between these hours, the time to cargo from certain named causes such as exceeding a length specified in their tariff of- the name undisclosed: ”local charterers or a spent working would not count as laytime. an or negligence of the master. ten 40 feet or 12 meters. This extra charge is similar phrase” 16 Chartering terms 17 FCL – Full Container Load – Quantity of car- it may be the unit on which freight is based. FIOS Free In and Out and Stowed – Qualifi- vessel, which may include amortization and go, which fills a shipping container to capac- cation to a freight rate which is equivalent to interest, but does not include fuel or any oth- ity, either by weight or cubic measurement. FHEX – Fridays and Holidays Excepted - free in and out but which avoids any ambigu- er variable costs. Charter-Party term, which provides that Fri- ity by specifying that the cost of stowage is FCL Allowance – Deduction from the FCL days and holidays do not count in the calcu- not for the account of the shipowner, It is nor- Fixture – Successful conclusion of the ne- freight provided by a shipping line or liner lation of laytime. This term applies to those mally payable by the charterer or the shipper. gotiations between shipowner and charterer, conference to a shipper who loads a mini- countries where Friday is the Sabbath, nota- It is used in carriage of general cargo. generally through shipbrokers, resulting in mum number of tons or cubic meters of car- bly in the Middle East. the charter of a ship. go into a shipping container. There may be FIOT – Free In and Out and Trimmed – Qual- various allowances depending on the degree FI – Free In – Free of expense to the ship- ification to a freight rate which is equivalent FLT – Full Liner Terms – Qualification to a of utilization of the container. Also known as owner of cargo handling at the loading port. to free in and out but which avoids any ambi- freight rate, which signifies that it consists of utilization allowance. guity by specifying that the cost of trimming the ocean carriage and the cost of cargo han- FILO/FILTD – Free in Liner Out / Free in is not for the account of the shipowner. It dling at the loading and discharging ports, FCL/FCL – Term used to describe a contain- Liner Terms Discharge – Qualification to a is normally payable by the charterer or the according to the custom of those ports. This er freight rate whereby the shipper is respon- freight rate denoting that it is inclusive of the shipper. It is used in carriage of bulk cargo. varies widely from country to country and, sible for packing of the container and the sea carriage and the cost of discharging. It within countries, from port to port: in some shipper or receiver, as the case may be, is excludes the cost of loading and, if appro- Firm Offer – An offer that is not conditional ports, the freight excludes all cargo handling responsible for the unpacking. priate to the tape of cargo, stowing, dunnag- in any way and is binding on the party mak- costs while in others, the costs of handling ing, lashing and securing or trimming, all of ing it, provided that it is accepted in full and between the hold and the ship’s rail or quay FCL/LCL – Term used to describe a freight which are payable by the charterer or ship- within any time. is included in the freight. rate whereby the shipper is responsible for per. This type of freight rate may have a pro- packing of the container and the shipper or vision for laytime and demurrage at the port First Class ship – Ship to which the highest FO – Free Out – Qualification to a freight rate receiver, as the case may be, is responsible of loading since the carrier has no control class has been given by a classification so- denoting that the cost of discharging of the for the unpacking. over the loading. ciety in accordance with its rules concerning cargo from the ship’s hold is not included in construction and maintenance. the freight but is payable by the charterer or FD – Free Despatch – Provision in a voyage FIO – Free In and Out – term qualifying a shipper or Bill of Lading holder, as the case Charter-Party that despatch money is not pay- freight rate which signifies that it excludes Fix (to) – To conclude successfully nego- may be. When qualifying a term of sale, it de- able when loading and/or discharging has the cost of loading and discharging and if ap- tiations resulting in the charter of a ship or notes that the purchase price of the goods been completed in less than the time allowed. propriate to the tape of cargo, stowing, dun- cargo. does not include this cost that is borne by naging, lashing and securing or trimming, all the buyer. Often, daily rates of discharging Ferticon – Voyage Charter-Party used for of which are paid by the charterer or shipper Fix Best Possible – Situation where the and demurrage are incorporated into such shipments of fertilizer, published by the or receiver, as the case may be. This type of broker is given leeway to negotiate the Char- contracts. Chamber of Shipping. rate is typically found in voyage charter-par- ter-Party if terms of original instructions ties and, since the shipowner has no control cannot be met in the market. Very rarely FOB – Free on Board – Sales term denoting Fertivoy – Voyage Charter-Party used for over loading and discharging, these general- happens. Usually, the broker is given a set of that the seller is responsible for delivering shipments of fertilizer from the United States ly have suitable clauses for laytime and de- instructions by the principal, and if he can- the goods to the port of loading agreed in the of America and Canada. The full name of this murrage to allow for delays at the Loading not find a counter to meet those terms, he contract and for loading them on to the ship Charter-Party is the North American fertilizer and discharging ports. must return to his principal for a new set of nominated by the buyer. The risk of loss or Charter-Party. instructions. damage to the goods generally passes from FlO LSD – Free In and Out, Lashed, Secured the seller to the buyer when the goods pass FEU – Forty Foot Equivalent Unit - Unit of and Dunnaged – Qualification to a freight Fixed on Subjects – Said of a ship, when ship’s rail at the port of loading. measurement equivalent to one 40-foot con- rate, which is equivalent to free in and out, the terms and conditions of chartering her tainer- thus two 20-foot container comprise but which avoids any ambiguity by specifying have been agreed except for a few, normally FOB Charges – Are cargo handling charges an FEU. This measurement is used to quan- that the cost of lasing, securing and dunnag- minor, details. levied on the shipper by the shipping line at tify, for example, the container capacity of a ing is not for the account of the shipowner. the port of loading. ship, the number of containers carried on a It is normally payable by the charterer or the Fixed Operating Expense – The daily or particular voyage or over a period of time, or shipper. monthly out-of-pocket costs for operating a

18 Chartering terms 19 – Circumstance which is Freight Forward – See freight collect. custom of the ports involved, the freight may Gross Terms – Type of voyage charter in beyond the control of one of the parties to include the cost of loading and/or discharg- which the shipowner pays for loading and a contract and which may, according to the – See forwarding agent. ing the cargo or may simply cover the ocean discharging. terms and conditions, relieve that party of li- carriage. ability for failing to execute the contract. Freight Payable at Destination – Method of Groupage – See consolidation. paying the freight often used for shipments Forwarding Agent of Forwarder – Person or of bulk cargoes whose weight is established Groupage Bill of Lading – Bill of Lading, company who arranges the carriage of goods on discharge from the ship. G issued by a carrier to a forwarding agent, and associated formalities on behalf of a sometimes known as a groupage agent or shipper. The duties of a forwarding agent in- Freight Prepaid – Freight which is payable GA – – International act or consolidator, which covers consignments clude booking space on a ship, providing all before the contract has been performed. sacrifice that is carried out during voyage to from various shippers for the same destina- the necessary documentation and arranging Very often, the bills of lading are signed and preserve the venture from a real peril. The tion which have been consolidated into one Export Customs clearance. Also referred to exchanged with the shipper for his payment party who has suffered a loss as a result is consignment by the forwarding agent. Each as freight forwarder. of freight. reimbursed by all the other parties to the shipper receives a house Bill of Lading from marine adventure, each paying a proportion the forwarding agent covering his consign- Foul Bill of Lading – See dirty Bill of Lading. Freight Quotation – Freight quoted by a of the amount of the toss according to the ment. shipping line or liner conference, which may value of their interest. FOW – First Open Water – Time in Spring be given as an indication only. GT – Gross Tonnage – The total of all the or early Summer when rivers, lakes or seas Gless – Gearless Ship – Ship which is not enclosed spaces within a ship expressed in are unfrozen and sufficiently free of ice to Freight Rate – Amount of money paid to a equipped with her own crane(s) or derrick(s). tons each of which is equivalent to one hun- be open to navigation. The term is normally shipowner or shipping line for the carriage When chartering or scheduling such a ship dred cubic feet. This term was previously re- used in the Great Lakes or Baltic trades and of each unit of cargo, such as a ton, a cubic for a particular voyage, it is necessary to en- ferred to as GRT. usually refers to sometime in April. meter or container load. Also referred to as sure that the loading and discharging ports rate of freight. have shore cranes capable of lifting up to the Free Time – Period between the time a ship heaviest piece weight of the ship’s cargo. is ready to load or discharge, having given Freight Tariff – Schedule, published by a H notice of readiness, and the time that lay- liner conference or shipping line, containing Gencon – Widely used general purpose voy- time commences in accordance with the freight rates for a variety of commodities age Charter-Party published by BIMCO. HA – Hatchway – Opening in the deck of a Charter-Party, during which the charterer or likely to be carried by the lines and whether ship though which cargo is loaded into, or received is not obliged to load or discharge. these are payable on the weight of commod- General Average Clause – Clause in a Bill discharged from, the hold. It is important to make provision in the Char- ity or its cubic measurement. The tariff also of Lading or Charter-Party that stipulates in ter-Party for the effect of laytime should the contains details of charges for heavy lifts and what country or place and by what rules, of- Hague Rules – Rules governing the carriage charterer or receiver elect to load or dis- long length cargoes, and terminal charges. ten the York-Antwerp Rules, general average of goods by sea and identifying the rights charge during this period. Apart from matters of rating, the tariff of a is to be adjusted. and responsibilities of carriers and owners liner conference states the geographical ar- of cargo. These rules were published in 1924 Freight Broker – Is the broker who is always eas served, the names of the member lines GRI – General Rate Increase Periodic in- following an international convention and successful in contracting somewhat above and the conference’s general regulations. crease to all the base freight rates in the tar- were subsequently given the force of law by the market level. But who will never risk the iff of a liner conference or shipping line. many maritime nations. loss of business due to the details of a par- Freight Ton – Unit of cargo on which a freight ticular Charter-Party clause. rate is based, generally one ton or one cubic Grain/Grain Capacity – Total cubic capaci- Hague-Visby Rules – Set of rules, amending meter whichever is greater. Also called reve- ty of a ship’s holds available for the carriage the Hague Rules, published and subsequent- Freight Collect – Freight payable at destina- nue ton. of grain or any other free-flowing bulk cargo ly given the force of law by many maritime tion, also referred to as freight forward. which is capable of filling the space between nations. FRT – Freight – Amount of money paid by a the ship’s frames. It is expressed in cubic Freight conference – See conference. shipowner or shipping line for the carriage feet or cubic meters. See corresponding term Half Hire – Provision in a time Charter-Party of cargo. Depending on the type of contract, bale/ bale capacity. that half of daily hire is payable under cer- the particular terms and, in some cases, the tain circumstances. For example, if a ship is

20 Chartering terms 21 lost at sea, it may be agreed that half hire ber of days that have elapsed since the Independent Line – shipping line that oper- is payable from the date the ship was last commencement of the charter of since last I ates on a route served by a liner conference heard from until the calculated date of arrival statement. Deductions may be made for but which is not a member of that confer- at her destination. items disbursed by the charterer on behalf of Ice Clause – Clause in a Bill of Lading or ence, also referred to as a non-conference the shipowner, such as cash advanced to the Charter-Party that sets out the options avail- line or an outsider. – Rules governing the rights master, claims against the shipowner and able to the panics to the contract of carriage and responsibilities of carrier and cargo off hire periods are also often deducted. The in the event that navigation is prevented or Inducement – Minimum quantity of cargo or interests which may be incorporated into first and last statements detail the quantity temporarily delayed by severe ice conditions. freight required by a shipping line to make it a contract for the carriage of goods by sea of bunkers on board at the time of delivery The wording of the clause and the options worthwhile to call at a particular port of load- either by agreement of the parties or statu- and redelivery respectively of the ship, and vary according to the individual contract: a ing or discharging. Such a cargo is called an torily. The rules were adopted by the United corresponding adjustments made to the master may have the right to divert the ship inducement cargo or inducement rate. Nations Convention on the Carriage of goods amounts of the remittances to take account to the nearest safe port to discharge cargo by sea in 1978. of the purchase of bunkers on board on de- destined for an ice-bound port. Equally, a Inherent vice – The terms mean any exist- livery by the charterer and the subsequent charterer may have the option of keeping ing defects, diseases, decay or the inherent Harbor Dues – Charge levied against a ship- sale of bunkers on board on redelivery to the a ship waiting for ice conditions to clear on nature of the commodity that will cause it to owner or ship operator by a port authority for shipowner. payment of demurrage. deteriorate with a lapse of time. Examples of the use of a harbour. goods that are subject to inherent vice are Ho. – Hold – Space below the deck of a Identity of Carrier Clause – Clause in a Bill agricultural commodities, such as fruits and Head Charter – Contract for the charter of ship, used for carry cargo, if a ship has more of Lading which stipulates who the carrier vegetables, and tobacco, which have the a ship between her owner and a charterer. than one hold, they are numbered consec- is, that is, the part responsible for the care tendency to over-heat and to be subject to This term is used to distinguish between utively from one upwards starting with the of the cargo under the terms of the contract spontaneous combustion. Mild rust on metal this Charter-Party and any contract, which forward-most; this is done for the purposes of carriage. This is normally the shipowner created by atmospheric conditions is an in- the charterer may have with a third party to of identifying the hold and locating cargo since the party issuing the Bill of Lading may herent vice. whom he sub-lets the ship. stowed in them. have chartered the ship and may not be re- sponsible for the navigation of the ship nor IWL – Institute Warranty Limits – Geograph- Head Charterer – Charterer whose con- House Bill of Lading – Bill of Lading issued for the handling of the cargo. There are some ical limits within which a ship may navigate tract is direct with the shipowner in respect by a forwarding agent to a shipper covering countries in which this clause may not be un- without incurring any additional insurance of a ship that is being chartered out and the a consignment, which the forwarding agent held. premium. sub-chartered, perhaps several times. The has grouped with consignments from other head charterer is thus distinguished from all shippers to the same destination. The for- – Rules governing the interpre- Intaken Weight – Actual weight of cargo the sub-charterers. warding agent receives one groupage Bill of tation of terms used in international trade, loaded on board a ship. Lading from the carrier that covers all the published by the International chamber of Hire or Hire Money – Money paid by a char- consignments. Commerce. Against each of the terms of Interclub Agreement – Agreement between terer to a shipowner for the hire of a ship sale, such as FOB, CIF and DDP, are defined a number of major protection and indemnity taken on time charter. It may be expressed, Husbandry Agent – This is the agent ap- the duties of buyer and seller. These rules clubs on the method of apportioning Liabil- for example, as an amount per day or per pointed by the shipowners to attend only to are incorporated into a contract of sate by ity for loss and damage to cargo carried in deadweight ton per month, hire is payable, those non-cargo matters - specifically those agreement of the two parties. ships chartered under a New York Produce by agreement, at regular intervals such as matters concerning vessel crew, repairs, sup- Exchange Charter-Party. monthly or semimonthly, normally in ad- plies, and provisioning and classification so- Indemnity – Compensation offered by one vance. It is important that hire money is paid ciety surveys. party to another for the consequences of car- Interim Voyage – Voyage undertaken by a on time since otherwise the shipowner has rying our, or omitting to carry out, a certain ship between the times she is chartered for a the right to withdraw the ship from the ser- HWONT – High water ordinary neap tides. act. An indemnity is usually given in writing specific voyage and the time she performs it. vice of the charterer. but is unenforceable in a court of law if the HWOST – High water ordinary spring tides. act for which it is given is intended to de- Intermodal Tariff – Tariff or freight rates of Hire Statement – Written statement of the fraud an innocent third party. a shipping line or line conference covering amount of hire money payable by a time inland as well as ocean legs. charterer to a shipowner, showing the num-

22 Chartering terms 23 ”Issued” Charter – A form of Charter-Party ready to load. This period is expressed as two Letter of Indemnity – Written statement in Lading, it is not a document of title; it bears for the establishment of which it might be dates, for example laydays 25 March cance- which one party undertakes to compensate the name of the consignee who has only to said that BIMCO is responsible, is referred to ling 2 April or, when abbreviated as laycan, another for the costs and consequences of identify himself in order to take delivery of as ”issued” by BIMCO. laycan 25 March/2 April. The charterer is not carrying out a certain act, for example, a the cargo, because it is not negotiable, the obliged to commence loading loading until shipper who has been delayed in sending liner waybill is not acceptable to the banks the first of these dates if the ship arrives ear- an original Bill of Lading to the receiver may as collateral security; the purpose of the liner lier and may have the option of canceling the instruct the master of the ship or the ship- waybill is to avoid the delays to ships and car- J charter if the ship arrives after the second of owner to release the goods to a named third goes that occur when bills of lading are late the dates, known as canceling date. party without production of an original Bill of in arriving at the discharge port. The liner Jettison Clause – Clause in a Bill of Lading Lading. The master or owner, if they agree, waybill is also referred to as a sea waybill or or Charter-Party setting out the circumstanc- Lay time – Time allowed by the shipowner to may require a letter of indemnity from the an ocean waybill or simply waybill. es under which a master is entitled to jetti- the voyage charterer or Bill of Lading holder shipper for the consequences of comply- son goods from a ship. in which to load and/or discharge the cargo. ing should it turn out that the named party Linertime – Deep sea time Charter-Party It is expressed as a number of days or hours is not entitled to take delivery of the goods. published by BIMCO, used when ships are Joint Survey – Inspection carried out by a or as a number or tons per day. There is nor- It should be noted that, as a rule, any such chartered for liner operation. surveyor on behalf of two parties, the cost mally a provision in the Charter-Party for the letter that seeks to indemnify against an act, generally being borne by both. commencement of lay time, which is often at which is intended to defraud an innocent Loading Broker – Company that represents a certain hour after notice of readiness has third party, is unenforceable in a court of law. a shipping line at the port of loading. Its du- Jurisdiction Clause – Clause in a Bill of been tendered by the master, a provision ties are to advertise the line’s sailings, to ob- Lading or Charter-Party, which stipulates for periods when lay time hoes nto count, Lien clause – Clause in a voyage Char- tain cargoes and co-ordinate their delivery to that any dispute between the parties arising for instance during bad weather, weekends ter-Party which entitles the shipowner to ex- the ship and to sign bills of lading on behalf from the contract, should be resolved in a or holidays or a provision for lay time being ercise a lien on the cargo, that is, to retain of the master. court of law, as opposed to arbitration. It also exceeded, when demurrage or damages for control of the cargo until any freight, dead- specifies which country has jurisdiction, that detention become payable, or not being fully freight or demurrage which is owing is paid. Loose – Said of a consignment, which con- is, the authority to administer justice. Also used, when despatch may be payable. This provision is often incorporated into the sists of single pieces not bundled together. known as litigation clause. cesser clause, which seeks to relive the char- Laytime Saved – Charter-Party term used to terer once the cargo has been shipped. LONL – Lost or Not Lost - Term which may define one method by which despatch mon- be used in contracts of carriage in which the ey is calculated, that is, by deducting lay time LIFO – Liner In Free Out – Qualification to freight is prepaid: often, freight is not return- K used from lay time allowed, if for example, a freight rate denoting that it is inclusive of the able whether the ship and/or the cargo are Charter-Party provides for 6 laydays for Load- sea carriage and the cost of loading. It ex- lost or not once having commenced the voy- KG (s) – Kilogram(s) ing and the charterer uses 3 days, he is enti- cludes the cost of discharging, which is pay- age. Many charter-parties provide that bro- KT – Knot tled to 3 days despatch money. Also referred able by the shipper or receiver, as the case kerage commission is payable whether the to as working time saved. may be. There may be a laytime and demur- ship is lost or not. rage arrangement at the port of discharging Laytime Statement – Portion of a time since the carrier has no control over the dis- LS – Lump sum. L sheet, which details the amount of laytime charging. used by a voyage charterer. LT – Liner Terms – Qualification to a freight Laydays – Days allowed by the shipowner to Liner Bill of Lading – Bill of Lading contain- rate which signifies that it consists of the the voyage charterer or Bill of Lading holder L/C – Letter of credit ing the terms and conditions of carnage of a ocean carriage and the cost of cargo handling in which to load and/or discharge the cargo. shipping line. at the loading and discharging ports according See also lay time. LCL – Less than Container Load - Consign- to the custom of those ports. This varies widely ment of cargo, which is insufficient to fill a Liner Waybill – Document, issued by a from country to country and, within countries, Laycan or L/C – Laydays Canceling - Peri- shipping container, it is grouped with other shipping line to a shipper, which serves as from port to port: in some ports, the freight ex- od during which the shipowner must tender consignment for the same destination in a a receipt for the goods and evidence of the cludes all cargo handling costs while in others notice of readiness to the charterer that the container at a container freight station. contract of carriage. In these respects it re- the cost of handling between the hold and the ship has arrived at the port of loading and is sembles a bill of lading but, unlike a Bill of ship’s rail or quay is included.

24 Chartering terms 25 Lump Sum Charter – Voyage charter for MLWN – Mean low water neaps. Non-Reversible Laytime – Term used in a which the freight is payable as a lump sum N voyage Charter-Party to signify that the time rather than per ton or other unit of cargo. MLWS – Mean low water springs. allowed to the charterer for loading is to the The shipowner guarantees to lift a certain NAABSA – Not Always Afloat But Sage treated separately from the time allowed for quantity of cargo but the charterer pays the MOL – More or Less. Aground – Provision in a Charter-Party that discharging for the purpose of calculating de- same amount for freight irrespective of the the charterer has the right or order the ship murrage or despatch. quantity loaded. Molchop – More or less in Charterer’s Op- to a port where she may touch the bottom in tion - Option allowed to a voyage charterer safety. NOR – Notice of Readiness - Provision in a LWONT – Low Water Ordinary Neap Tides. to load up to a certain quantity, normally voyage charter that the shipowner or master expressed as a percentage or a number of Negligence Clause – Clause in a Bill of Lad- must advise the charterer when the ship has LWOST Low Water Ordinary Spring Tides. tons, over or under a quantity specified in ing or Charter-Party which seeks to relieve arrived and is ready to load or discharge for the contract of carriage. This option may be the shipowner or carrier of liability for losses laytime to start counting. The clause contain- sought if the charterer is not certain of the caused by the negligence of his servants or ing this provision often stipulates the particu- exact quantity that will be available at the agents. lar hours and days when this notice may be M time of loading. tendered and how soon afterwards laytime New Jason Clause – Protective clause in- commences. Manifest – Document containing a full list of MOLOO – More or Less in Owner’s Option - serted into a Charter-Party or Bill of Lading ship’s cargo, extracted from the bills of lad- Option allowed to a shipowner to carry up to which provides that the shipowner is entitled NOS – Not Otherwise Specified - See not oth- ing. A copy, known as the outward manifest, a certain quantity, normally expressed as a to recover in general average even when the erwise enumerated. is lodged with the Customs authorities at the percentage or number of tons, over or under loss is caused by negligent navigation. The port of loading. A further copy, known as the a quantity specified in the voyage charter. need for such a clause arises from the de- Notice of Redelivery – Written notice given inward manifest, is similarly lodged at the This option may be sought if the shipowner cision of an American law exempted a ship- by the time charterer to the shipowner giving discharge port, with one copy going to the is not certain what the ship’s cargo capaci- owner from liability for loss or damage to the date when the ship is to be returned to ship’s agent so that the unloading of the ship ty will be, taking into consideration bunkers, cargo resulting from negligent navigation, the shipowner at the end of the period of the may be planned in advance. stores and fresh water, or if he wants flexibili- this did not entitle the shipowner to recover charter. Charter-parties often stipulate that ty to adjust the ship’s trim. in general average for such a loss. several such notices be given at agreed in- Max – Maximum tervals as the date of redelivery approaches. MHWN – Mean High Water Neaps. More in dispute if on board to be delivered - NOE – Not Otherwise Enumerated – Catego- MHWS – Mean High Water Springs. Notation appearing on a Bill of Lading when ry in a freight tariff of a shipping line or liner Notify Party – Party whose name and ad- the shipper is in disagreement with the ship conference which covers commodities not dress appears in a Bill of Lading who is to be Min – Minimum. Min/Maximum - When qual- as to the number of pieces or packages tal- specifically described elsewhere in the tariff. notified by the shipping company or its agent ifying the contractual quantity in a voyage lied on board. of the arrival of the goods at the discharge charter, this term signifies that the freight Nomination – Designation of a specific ship port. The notify party is often an agent for is payable on that precise quantity, no more M/R – Mate’s Receipt – Receipt made out for a particular voyage by a shipowner or the receiver of the goods who arranges for and no less. by the first officer, stating the quantity and shipping line. their clearance and transport to the receiv- condition of the goods loaded on board the er’s premises. There is normally a box on the Misdescription – Incorrect information con- ship. This document is given to the shipper Non-Conference Line – See independent Bill of Lading into which the details of the no- cerning a ship given by the shipowner to a and later exchanged for the Bill of Lading. line. tify party are inserted. charterer or concerning cargo given by a NT – Net Tonnage – The total of all enclosed charterer or shipper to a shipowner or ship- MS – Motor ship. Non-Negotiable Bill of Lading – Bill of ping line. This may give raise to a claim for Lading which is not a signed, original Bill of spaces within a ship available for cargo ex- pressed in tons each of which is equivalent extra costs or damages or, in some cases, MT – Metric ton 1,000 kilograms. Lading and which is therefore not capable of cancellation of the contract of carriage. being used to transfer title in the goods de- to one hundred cubic feet. This term was pre- viously referred to as NRT. MV – Motor vessel. scribed in it.

26 Chartering terms 27 of a minimum agreed quantity of cargo on Freight on bulk cargoes is sometimes paya- charterer against a ship-owner when the any one ship. It is lower than the published ble on the basis of this weight. ship has been unable to achieve the speed O tariff rate and generally applies to the ship- agreed in the Charter-Party or has consumed ments of one commodity from one port of Overlap – The period of time during which a too much fuel or both. Ocean Waybill – See liner waybill. loading to one port of discharging. charterer retains a vessel beyond the stated period of the time charter. Performance Clause – Clause in a time Off hire – Said of a ship on time charter for Orders – Set of instructions given by the Charter-Party which stipulates that, should which hire money has temporarily ceased shipowner or ship operator to the master of Overage – Cargo discharged in excess of the the ship be unable to achieve the agreed to be paid by the charterer, for example be- a ship concerning the next voyage. These in- quantity on the ship’s mani-fest. speed or should she consume too much fuel, cause of breakdown of the ship or her equip- structions include the names of the intended the charterer is entitled to recover from the ment. ports of loading, bunkering and discharg- Overtonnaging – Situation where there are shipowner the cost of time lost and extra ing together with the names, addresses, too many ships generally or in a particular fuel, normally by means of a deduction from Off Hire Survey– Inspection carried out at telephone numbers and cable addressed trade, for the level of available cargoes. hire money. the time a ship is redelivered by a time char- of the ship’s agents at each port, details of terer to a shipowner at the end of the period the cargo, a schedule of bunkers needed for Owner’s Agents – Ship’s agent nominated PFT – Per Freight Ton – see freight ton. of the charter. The inspection is carried out the voyage is not knows. A ship is said to be by, and paid by, the shipowner in accordance to determine whether the ship is in the same awaiting orders and the master may be in- with the Charter-Party. PLTC – Port Liner Term Charges - Cargo han- condition, wear and tear excepted, as on de- structed to anchor where he is or to steam in dling charges levied on the shipper by the livery. The quantity of bunkers is ascertained the direction of the area where the shipown- Owner’s Broker – Shipbroker who acts on shipping line at the port of loading. for comparison with the amounts specified in er expects to find a cargo. behalf of a shipowner in the negotiations the Charter-Party. By agreement, the ship is leading to the chartering out of the owner’s Point to Port Rate – Freight rate which in- inspected by one surveyor for each of the two Original Bill of Lading – Bill of Lading which ship. cludes all costs from inland place of the ex- parties. Which party pays for the survey and bears the original signature of the master of porting country to the port of discharge in whether the time taken counts for the pur- a ship or his agent. It is exchanged for the Owner’s Market – Strong market in favour the importing country. pose of calculating hire money are matters goods at the place of destination of the con- of Ship Owner’s. agreed in the Charter-Party. tract of carriage. Pooling – Sharing of cargo or the profit of loss from freight by member lines of a liner OO – In Owner’s Option – Term in a Char- OSB – One Safe Berth - See safe berth. conference pooling arrangements do not ex- ter-Party, which stipulates that the shipowner P ist in all conferences. has a choice in specific circumstances. For OSP – One Safe Port - See safe port. example, in a voyage charter, the owner may Paramount clause – Clause in a Bill of Lad- Port to Point Rate – Freight rate which in- have the option of specifying the exact quan- OS&D – Over, Short and Damage Report - ing or Charter-Party which stipulates that cludes all costs from the port of loading in tity of cargo to be Loaded. See outturn report. the contract of carriage is governed by the the exporting country to an inland place in Hague Rules or the Hague-Visby Rules or the the importing country. Open – Said of a ship that is available as OT – Overtime. enactment of these miles in the country hav- from a specified date at a particular place to ing jurisdiction over the contract. Post Fixture – After the contract for the steam to another port, if necessary, to load Outsider – See independent Line. charter of a ship has been agreed. Scope of her next cargo, having discharged the last Part Cargo – Goods which do not represent work carried out by a shipowner, charterer one. Outturn Report – Written statement by a the entire cargo for a particular ship but or shipbroker, including payment of hire or stevedoring company in which the condition whose quantity is sufficient to be carried on freight, calculation of despatch or demur- Open Conference – Liner conference that of cargo discharged from a ship is noted the charter terms. rage and the resolution of any disputes. does not require its member lines to vote on along with any discrepancies in the quantity the admission of a new member. compared with the ship’s manifest. Also re- Part Charter – The chartering of a ship to Preamble – First few lines of a Charter-Party ferred to as an over, short and damage re- carry a quantity of goods, which represents in which the panics to the contract and the Open Rate – Freight rate negotiated by a port. only a part of the cargo. ship are identified. shipper or freight forwarder with a shipping line or liner conference for shipping in excess Outturn Weight – Weight of cargo ascer- Performance – Claim made by the time Private Form – Standard Charter-Party de- tained when it is discharged from a ship.

28 Chartering terms 29 Redly – Redelivery – Return of a ship by the go interests to order the chartered ship to a vised and used by a particular company. Oil R time charter to the shipowner at the end of berth which is physically safe for her while companies when chartering tankers use the the period of the charter. she is there for the purpose of loading or dis- majority of these charter-parties. Rate of Demurrage – Amount payable by charging. a voyage charterer to a ship-owner for each Redelivery Certificate – Document signed Charter-Party – Document con- day used to load and/or discharge cargo by or on behalf of the shipowner and the SD – Single deck ship. taining all the terms and conditions of a con- in excess of the time allowed in the Char- charterer, certifying the time, date and place tract between a shipowner and a charterer ter-Party. of redelivery of the ship, that is, the return- Sea Waybill – See liner waybill. but which is unsigned and therefore is not a ing of the ship by the time charterer to the contract itself. Rate of Discharging/Loading – Number of shipowner at the end of the period of char- – Fitness of a ship for a par- tons of cargo discharged/loaded each day ter. The certificate also states the quantity of ticular voyage with a particular cargo. The Pro Forma Disbursements Account – from/into a ship. Such a provision is often in- bunkers onboard at the time redelivery. main requirements for seaworthiness are Statement sent by a ship’s agent at a port cluded in the terms of a voyage charter. that a ship has sufficient crew, stores and to the shipowner in advance of the ship’s Release a Bill of Lading (to) – to provide fuel, the machinery and equipment are in call at the port. It consists of the expenses Rate of Freight – See freight rate. the shipper with an original Bill of Lading, of- good repair and that the ship is fit to receive that are likely to be incurred, including port ten in exchange for the freight. and carry the cargo. charges, pilotage, towage and the agent’s Received for shipment Bill of Lading – Bill commission. This account is used to help of Lading evidencing that the goods have Reversible Laytime – Term used in a voyage Service Agreement or Service Contract the shipowner estimate the viability of a voy- been received into the care of the carrier, Charter-Party to signify that the time allowed –Agreement between a shipper and a liner age and serves as a request by the agent for but not yet loaded on board. It also serves for Loading may, at the charterers option, be conference in which the shipper undertakes sufficient funds to be made available prior to as evidence of the contract of carriage and added to the time allowed for discharging for to ship some or all, as the case may be, of his the ship’s arrival. is a document of title, although because the the purpose of calculating demurrage or des- cargo on conference line ships for a specific goods have not necessarily been loaded on patch. period of time in return for an agreed rate of Protecting Agent – Agent appointed by the to the ship, this type of Bill of Lading is not freight and level of service. Some contracts owners or charterers to protect their interest always acceptable to banks as collateral se- RT – Revenue Ton – Unit of cargo on which require the shipper to achieve a minimum and to supervise the work carried out by the curity. a freight rate is based, generally one ton or quantity of cargo go over the agreed period. ship’s agent when, under the Charter-Party, one cubic meter whichever is greater. Also the vessel is consigned to another’s agent. Receiver – Party who receives the cargo at called freight ton. SHEX – Sundays and Holidays Excepted - If the Charter-Party calls for owner’s agents, the place of destination in the contract of Charter-Party term which provides that Sun- the charterers may appoint a protecting or carriage. Round Voyage – Voyage involving two legs days and public holidays do not count in the supervisory agent to protect their interest the second of which brings the ship back calculation of laytime. See also even if used, at the port of loading and/or discharge. The ”Recommended” charter – When there to the geographical area where the first leg and unless used. same applies to shipowners, time charterers has been no proper groups of charterers commenced. and voyage charterers. with whom to negotiate a particular charter, SHINC – Sundays and Holidays Included for instance, ”Gencon” Charter it is issued Running Days – consecutive days of 24 - Charter-Party term, which pro-vides that Protective Clauses – Clauses in a Char- as a ”’recommended” charter. The same is hours including weekends and holidays. Sundays and public holidays count in the cal- ter-Party which provide contingencies for the case if the parties with which a charter culation of laytime, whether or not used for unforeseen situations, such as ice, strikes, has been negotiated will not be able to bind loading or discharging, as the case may be. general average or collision. Also known as their members to use the charter as a clean protecting clause. document. This is the position, for instance, S Shipbroker – Person having one or several for the ”Norgrain” Charter and the ”Nuvoy” occupations: chartering agent or owner’s Purposes – Time allowed in a voyage Char- Charter. Whereas BIMCO naturally wishes Saleform – Memorandum of agreement giv- broker, negotiating the terms for the charter ter-Party for loading and discharging com- the printed text of a ”recommended” charter ing details of the purchase of a ship, devised of a ship on behalf of a charterer or shipown- bined, expressed as a number of days or to be followed by charterers and shipowners, by the Norwegian Shipbroker’s Association. er respectively; sale and purchase broker, hours. Also referred to as all purposes. there is no compulsion in this respect. negotiating on behalf of a buyer or seller of SB – Safe Berth – Term in a charter party a ship; ship’s agent, attending to the require- which places the responsibility onto the car- ments of a ship, her master and crew when

30 Chartering terms 31 in port on behalf of the shipowner, loading Sister Ship – Ship with the same specifica- Strike Clause – Clause in a Bill of Lading or ty by another party who is not the owner but broker, whose business is to attract cargoes tion as another. This is sometimes offered to Charter-Party that sets out the options avail- who, in turn, has the charter of the ship. Also to the ships of his principal. a charterer by a shipowner who has two or able to the parties to the contract of carriage referred to as a sub-charter. more identical ships but is not certain at the in the event that a strike prevents or inter- Shipped Bill of Lading or Shipped on Board time of negotiating the charter that will be in rupts the loading or discharging of the car- Substitute – Replacement for a ship for a Bill of Lading – Bill of Lading issued when the most suitable geographical position to go. The wording of the clause and the option particular voyage. the goods have been loaded on board the perform the voyage. vary according to the individual contract. In ship. This type of Bill of Lading, which must the case of a charter, the clause may contain Substitution – The replacement of a ship contain a reference to the goods having SP – Safe Port – Term in a Charter-Party a provision for the effect of a strike on lay- with another ship. A shipowner often has shipped on board, is often required by banks which places the responsibility of to the car- time. an option in a voyage to employ a ship oth- who advance money using the Bill of Lading go interests to order the chartered ship to a er than the one named in the Charter-Party as collateral security and who wish to be sat- port which is physically and politically safe Sub-Charterer – Person or company who since he may not know which of his ships will isfied that the goods ale on board the ship. for her to reach, remain and leave, taking charters a ship for a party, who is not the be capable of performing the voyage at the into consideration the cargo to be loaded or owner but who, in turn, has chartered the time the contract is concluded, particularly if Shipper – Person or company who enters discharged. ship. this is done well in advance of loading. into a contract with a liner conference, ship- ping line or shipowner for the carriage of S & P – Sale and Purchase Broker - person Sub-Freight – Freight payable by the SWL – Safe Working Load - Maximum load goods. who negotiates the terms for the sale of a sub-charterer, normally to the charterer. which can safely be borne by a lifting or haul- ship on behalf of the buyer or seller. ing appliance, such as crane or winch. The Ship’s Agent – Person who looks after the Sub. Details – Subject Details - Term qual- safe working load is generally marked clearly interests of a ship while she is in port. His SSHEX – Saturdays, Sundays and Holidays ifying an offer or counter-offer for the char- on the equipment and must not be exceeded. duties include the arranging of pilotage, tow- Excepted - Charter-Party term which provides ter of a ship which denotes that only minor age and a berth for the ship, the signing of that Saturdays, Sundays and public holidays details remain to be agreed. It is widely ac- bills of lading and the collection of freight. do not count in the calculation of laytime. cepted that the conclusion of a contract is The agent Is paid a fee, agreed in advance See also even if used, and unless used. conditional on these details being agreed T with the shipowner. although an American court has ruled that SSHINC – Saturdays, Sundays and Holidays the acceptance of such offer or counter-offer TA Round – Transatlantic round voyage. Short Form Bill of Lading – Bill of Lading Included - Charter-Party term which provides is sufficient to create a contract, leaving the which does not have printed on it the full that Sundays and public holidays count in details to be agreed subsequently. Tariff – Schedule of charges, such as the terms and conditions of the contract of car- the calculation of laytime, whether or not freight tariff of a shipping line or conference, riage but instead contains a reference to the used for loading or discharging, as the case Sub. Free – Subject Free - Term used in an in which are published freight rates, general- carrier’s conditions, normally stating that a may be. offer made by a shipowner to signify that ly for a wide variety of commodities. copy is available on request. the acceptance of that offer will only result Statement of Facts – Statement, prepared in a contract if one has not been concluded TBA – To be advised. Short Shipment – Part of consignment by the ship’s agent at the loading and dis- in the meantime with a third party. Also re- which has not been shipped in a specific charging ports, which shows the date and ferred to a subject open or subject unfixed. TBN – Top be Nominated - Said in respect of ship, normally because there was insufficient times of arrival of the ship and the com- a voyage for which a specific ship has yet to be space in the ship or because the goods ar- mencement and completion of loading and Sub. Open – Subject Open - see subject free. designated by the shipowner or shipping line. rived at the port of loading after the ship has discharging. It details the quantity of cargo completed loading or has sailed. loaded or discharged each day, the hours Sub. Unfixed – Subject Unfixed - See subject Tender Notice of Readiness (to) – As mas- worked and the hours stopped with the rea- free. ter of a ship to present cargo interests or Sim Sub – Similar Substitute - ship offered sons for the stoppages, such as bad weath- their agent with written notice that the ship by a shipowner to a charterer as a replace- er, a strike or breakdown of equipment. Subject Stem – Subject to the availability of has arrived and is ready to load or discharge, ment for the one originally chartered which is the cargo on the dates on which a ship is of- as the case may be, some charter parties similar in respect of the principal character- Stem – Availability of a cargo on the date or fering to load. provide that this notice may be offered at istics, which include deadweight, capacities dates on which a ship is offering to load. certain times only, for example during office and hold and hatch sizes. Sub-Let – The charter of a ship to one par- hours.

32 Chartering terms 33 TEU – Twenty Foot Equivalent Unit - Unit of Time Lost Waiting for Berth to Count – A TPI – loos per Inch – A quantity, for example Voyage Charter-Party – Document contain- measurement equivalent to one 20 foot Charter-Party expression which denotes that of cargo or fuel, needed to immerse a ship ing the terms and conditions of a contract shipping container. Thus a 40 foot container the laytime are to start from the time the No- one further inch. This quantity varies not only between a charter and a shipowner for the is equal to two t.e.u.s. this measurement is tice of readiness is presented by the master ship by ship but also according to the quanti- use of a ship’s cargo space for one, or more used to quantify for example, the container to the charterer’s agent, ever, though vessel ty already on board. than one voyage. capacity of a ship, the number of containers is held up because no berth is available. on a particular voyage or over a period of Turn Round Time or Turnaround or Turna- Voyage Estimate – Calculation of the prof- time, or it may be the unit on which freight Time reversible – Overall calculations of lay- round Time – Time between a ship arriving itability of a prospective voyage of a ship us- is payable. days, in loading and discharging in a voyage in port and sailing. ing estimated figures. In the case of a tramp Charter-Party. Time saved in Loading can be shipowner, the estimate is used to compare Through Bill of Lading – Bill of Lading is- made up for time lost, if any, in discharging Turn Time – Time during which a ship waits two or more possible voyage in order to de- sued by a shipping tine for a voyage requir- or vice versa. for a berth. termine which is the most profitable. Simi- ing on-carriage, thus involving at least one larly, a time charterer would compare two or transhipment. According to the particular Time Sheet – Statement, drawn up by the more ships so as to charter the one that is contract, the issuer of the Bill of Lading may ship’s agent at the loading and discharging least costly overall. The content of an esti- be responsible for the goods throughout the ports, which details the time worked in load- mate varies according to the type and terms voyage or only for one leg, acting as agent for ing or discharging the cargo together with U, V, W of the charter and whether a shipowner or the on-carriage. Often referred to simply as a the amount of laytime used. This latter fig- charterer is making the calculation. For an through bill. ure, when compared with the time allowed in UBC – Universal . owner, the principal costs are running cost the voyage Charter-Party, is used by the ship- of the ship (or hire money for a time char- Time – Frequently used term to mean lay- owner and charterer to calculate demurrage UCE – Unforeseen circumstances expected terer), bunker costs, port charges and canal time. or despatch, as the case may be. including MEBD (Main engine breakdown). dues together with ship’s agency fee and any cargo handling costs; the revenue is the dai- Time Charter – The hiring of a ship from a Time to Begin on Arrival – A Charter-Par- Unclean Bill of Lading – See dirty Bill of ly hire, in the ease of a time charter, or the shipowner for a period of time. Under this ty clause referring to the laytime in the strict Lading. freight, less any commission in the case of a type of contract, the shipowner places his sense that time is to count immediately on voyage charter. ship, with crew and equipment, at the dis- arrival at the port of loading or discharging UU – Unless Used – Charter-Party term posal of the charterer, for which the char- irrespective whether a berth is available or which provides that a proportion normally War Clause – Clause in a Bill of Lading or terer pays hire money. Subject to any restric- not. all or half, of time used to Load or discharge, Charter-Party which sets out the course of tions in the contract, the charterer decides as the case may be, during excepted periods action open to the master of a ship in the the type and quantity of cargo to be carried Ton Mile – Unit cargo ton/distance carried counts for the purpose of calculating total event that the ship or her cargo or crew and the ports of loading and discharging. and covered. This is arrived at as follows: if time used. would be put at risk because of war should He is responsible for supplying the ship two tons of merchandise are carried for 25 the voyage proceed. The clause varies ac- with bunkers and for the payment of cargo miles, then the ”ton mile” will be 2 x 25 or V/C – Voyage Charter – Contract of carriage cording to individual contracts but invariably handling operations, port charges, pilotage, 50 ton miles. in which the charterer pays for the use of a the master would not be required to put his towage and ship’s agency. The technical op- ship’s cargo space for one, or sometimes ship or crew at risk. eration and navigation of the ship remain the TPC – Tons per Centimeter – A quantity, for more than one, voyage. Under this type of responsibility of the shipowner. A ship hired example of cargo or fuel, needed to immerse charter, the shipowner pays all the operat- Waybill – See Liner Bill. in this way is said to be on time charter. a ship one further centimeter. This quantity ing costs of the ship while payment for port varies not only ship by ship but also accord- and cargo handling charges are the subject WEF – with effect from – This is said, for ex- Time Charterer – A person or company who ing to the quantity already on board. of agreement between the parties. Freight is ample, of the date when a new or amended hires a ship for a period of time. generally paid per unit of cargo, such as ton, surcharge of a shipping line takes effect. TPD – Tons per Day – The quantity of cargo based on are agreed quantity, or as lump Time Charter-Party – A document contain- loaded or discharged each day. The time al- sum irrespective of the quantity loaded, the WIBON – Whether in Berth or Not – Provi- ing the terms and conditions of a contract lowed by a shipowner to a charterer for load- terms and conditions of the contract are set sion in a voyage charter that, once the ship between a charterer and a shipowner for the ing or discharging, known as laytime, is often down in a document known as Charter-Party. has arrived at the port and tendered notice hire of a ship for a period of time. expressed as a number of tons per day. A ship chartered in this way is said to be on of readiness, if required, laytime will start to voyage charter.

34 Chartering terms 35 count in accordance with the Charter-Par- cording to the length of normal working time ty whether or not the ship has reached the each day in a port. berth. Working Day of 24 Hours – Period of time WIPON – Whether in port or not. which contains 24 normal working hours, if it is the custom of a port that eight hours WIEPON – Whether in free Pratique or not. represents the normal working time per day, then a working day of 24 hours would be con- Withdraw a ship from the service of the char- sidered as three laydays. ter (to) – To remove control of a ship from the time charter for the remaining period of the WP – Weather Permitting – Term used in a charter. This action is taken by the shipown- voyage charter to signify that laytime does er in accordance with the charter when threr not count when weather conditions do not has been serious breach of contract, com- allow loading or discharging operations to be monly when the charterer has failed to pay carried out. hire money on time. WTS – Working Time Saved – Charter-Party WOG – Without Guarantees. term used to define one method by which despatch money is calculated, that is, by de- Workable Hatch – Term in a voyage char- ducting laytime used from laytime allowed. ter which determines the number of days If, for example, a Charter-Party provides for allowed for loading and/or discharging by six laydays for loading and the charterer dividing the quantity of cargo in the largest uses three days, he is entitled to three days’ hatch by the quantity per workable hatch per despatch money. Also referred to as laytime day as stipulated in the Charter-Party. Diffi- saved. culties of interpretation may arise in the cal- culation of laytime allowed when expressed WWD – Weather Working Day – Days on in this way, particularly if the ship has hatch- which work is normally carried out at a port es capable of being worked by two gangs si- arid which counts as laytime unless loading multaneously. Also referred to as a working or discharging would have ceased because hatch. of bad weather.

Workable Crane – Term in a voyage char- WWR – When Where Ready – Fre- ter which determines the number of days quently used provision in a time allowed for loading and/or discharging by charter to determine the time and the number of cranes available for use by place of delivery/ redelivery of a the charterers for operations. Generally ex- ship by the charterer to the ship- pressed in tons per workable crane per day. owner. This term is qualified in such a way as to make the time Working Day – When normal work is carried and place unambiguous, such as out in a port. on completion of discharge at a named port, abbreviated to fol- Working Day of 24 Consecutive Hours - Work- lowed by the name of the port. ing day equates to one layday. The word con- secutive was introduced after it was ruled in WWRCD – When Where Ready court that a working day of 24 hours might on Completion of Discharge - see be considered as more than one layday ac- WWR when where ready above.

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