Shipping and Chartering Terms

B

 

BB

Ballast Bonus  (Special payment above the Chartering price when the ship has to sail a long way on ballast to reach the loading port.)

 

BB

Bareboat (Method of chartering of the ship leaving the charterer with almost all the responsibilities of the owner.)

 

B/L 

Abbreviation for “Bill of Lading.”

 

Backhaul 

To haul a shipment back over part of a route it has traveled.

 

Back to Back Charter

Contract between a charterer and a subcharterer whose terms and conditions are identical to the contract, known as the head charter, between the charterer and the shipowner. The purpose of agreeing identical terms is to ensure that any money for which the charterer may be liable to in the sub-charter, for example despatch money, is recoverable from the shipowner.

 

Backfreight

Freight payable to a shipowner for the carriage of goods back to the port of loading or to another convenient port when the vessel is unable to reach the port of destination because of an excepted peril or because the consignee fails to take delivery of The goods or provide instructions for their disposal.

 

BAF 

Abbreviation for “Bunker Adjustment Factor.” Used to compensate steamship lines for fluctuating fuel costs. Sometimes called “Fuel Adjustment Factor” or FAF.

 

Bale / Bale Capacity

Total cubic capacity of a ship’s holds available for the carriage of solid cargo which is not capable of filling the spaces between the ship’s frames. It is expressed in cubic feet or cubic meters. Where a cargo is free flowing and is capable of filling the spaces between the ship’s frames, the corresponding cubic capacity is known as the grain or grain capacity.

 

Balloon Freight 

Light, bulky articles.

 

Baltime

General purpose Time Charter Party published by BIMCO.

 

Baltic Mercantile & Shipping Exchange

Institution, located in London, England, also known as the Baltic Exchange or simply the Baltic, whose main function is to provide facilities for the chartering of ships by its members: chartering agents, acting on behalf of charterers, negotiate with shipbrokers who represent shipowners on the “floor” of the Baltic. Other activities include air chartering, futures trading and sale and purchase of ships.

 

Bank Guarantee

Guarantee issued by a bank to a carrier to be used in lieu of lost or misplaced original negotiable bill of lading.

 

Barratry 

An act committed by the master or mariners of a vessel, for some unlawful or fraudulent purpose, contrary to their duty to the owners, whereby the latter sustain injury. It may include negligence, if so gross as to evidence fraud.

 

Barrel (BBL) 

A term of measure referring to 42 gallons of liquid at 60o F.

 

Bareboat Charter

The hiring or leasing of a ship for a period of time during which the shipowner provides only the ship while the charterer provides the crew together with all stores and bunkers and pays all operating costs. This type of charter is favored by persons or companies who wish to own a ship for investment purposes but who do not have the desire or expertise to operate the ship. Similarly, it is favored by persons or companies who have a particular requirement for a ship and the expertise with which to operate one but without the wish or ability to purchase. A ship hired out in this way is said to be on bareboat charter. Also referred to as a demise charter or a charter by demise.

 

Bareboat Charterer

Person or company who charters a ship for a period of time, provides crew, bunkers and stores and pays all operating costs. Also known as a demise charterer or charterer by demise.

 

Bareboat Charter-Party

Document containing the contract between the owner of a ship and the demise charter, and signed by both, in which are all the terms and conditions such as the period of the charter, the rate of hire, the trading limits and all the rights and responsibilities of the two parties. Also referred to as a demise Charter-Party.

 

Barecon ‘A’ 

Standard bareboat Charter-Party published by BIMCO.

 

Barecon ‘B’

Standard bareboat Charter-Party used for newbuildings financed by mortgage, published by BIMCO.

 

Base Cargo

Minimum quantity of cargo required by a shipping line to make it worthwhile to call at a particular port of loading.

 

Base Rate

Basic rate of freight of a shipping line or liner conference onto which are added, or on which are calculated, the various surcharges such as the currency adjustment factor or bunker surcharge.

 

BB – Ballast Bonus

Sum of money paid by a time charterer to a shipowner in recognition of the fact that the shipowner is unlikely to find a cargo near to the place of redelivery of the ship at the end of the period of the charter and is therefore obliged to ballast his ship elsewhere.

 

BBB – Before Breaking Bulk

A condition of carriage that freight, or some percentage of it, becomes payable before breaking bulk (discharge of a vessel commences).

 

BCO 

Abbreviation for “Beneficial Cargo Owner.” Refers to the importer of record, who physically takes possession of cargo at destination and does not act as a third party in the movement of such goods.

 

BD

Bundle

 

Beam 

The width of a ship.

 

Bearer of a Bill of Lading

Person who tenders the Bill of Lading to the ship at the place of discharge in exchange for the goods. Bills of lading are often made out to bearer.

 

Belt Line 

A switching railroad operating within a commercial area.

 

Bends – Both Ends

At both loading and discharging ports. This term is often used together with GSAAAAB (good safe always afloat always accessible berth), with OSP (one safe port), with OSB (one safe berth) and to qualify the prices of the bunkers on delivery and redelivery in a time charter. Also used to state agency determination (ex. Carrier’s agents bends)

 

Beneficiary 

– Entity to whom money is payable.
– The entity for whom a letter of credit is issued.
– The seller and the drawer of a draft.

Berth Charter Party

Charter-Party in which a particular berth is nominated by the charterer. The time allowed for loading or discharging, as the case may be, does not start to count until the ship reaches the berth, unless berth is occupied in which case time starts counting when NOR is tendered.

 

Berth Standard of Average Cause

Clause in a Charter-Party setting out the contribution to be made by the charterer to any claim for loss or damage to cargo for which the shipowner is liable.

 

Berth Terms 

Shipped under rate that includes cost from end of ship’s tackle at load port to end of ship’s tackle at discharge port.

 

Beyond 

Used with reference to charges assessed for cargo movement past a line-haul terminating point.

 

Bilateral 

A contract term meaning both parties agree to provide something for the other.

 

Bill of Exchange 

In the United States, commonly known as a “Draft.”   However, bill of exchange is the correct term.

 

Bill of Lading (B/L) 

A document that establishes the terms of a contract between a shipper and a transportation company. It serves as a document of title, a contract of carriage and a receipt for goods.

– Amended B/L: B/L requiring updates that do not change financial status; this is slightly different from corrected B/L.
– B/L Terms & Conditions: the fine print on B/L; defines what the carrier can and cannot do, including the carrier’s liabilities and contractual agreements.
– B/L’s Status: represents whether the bill of lading has been input, rated, reconciled, printed, or released to the customer.
– B/L’s Type: refers to the type of B/L being issued. Some examples are: a Memo (ME), Original (OBL), Nonnegotiable, Corrected (CBL) or Amended (AM) B/L.
– Canceled B/L: B/L status; used to cancel a processed B/L; usually per shipper’s request; different from voided B/L.
– Clean B/L: A B/L which bears no superimposed clause or notation which declares a defective condition of the goods and/or the packaging.
– Combined B/L: B/L that covers cargo moving over various transports.
– Consolidated B/L: B/L combined or consolidated from two or more B/L’s.
– Corrected B/L: B/L requiring any update which results in money  or other    financially related changes.

– Domestic B/L: Non-negotiable B/L primarily containing routing details; usually used by truckers and freight forwarders.
– Duplicate B/L: Another original Bill of Lading set if first set is lost. also known as reissued B/L.
– Express B/L: Non-negotiable B/L where there are no hard copies of originals printed.
– Freight B/L: A contract of carriage between a shipper and forwarder (who is usually a NVOCC); a non-negotiable document.
– Government B/L (GBL): A bill of lading issued by the U.S. government.
– Hitchment B/L: B/L covering parts of a shipment which are loaded at more than one location. Hitchment B/L usually consists of two parts, hitchment and hitchment memo. The hitchment portion usually covers the majority of a divided shipment and carries the entire revenue.
– House B/L: B/L issued by a freight forwarder or consolidator covering a single shipment containing the names, addresses and specific description of the goods shipped.
– Intermodal B/L: B/L covering cargo moving via multimodal means. Also known as Combined Transport B/L, or Multimodal B/L.
– Long Form B/L: B/L form with all Terms & Conditions written on it.  Most B/L’s are short form which incorporate the long form clauses by reference.
– Memo B/L: Unfreighted B/L with no charges listed.
– Military B/L: B/L issued by the U.S. military; also known as GBL, or Form DD1252.
– B/L Numbers: U.S. Customs’ standardized B/L numbering format to facilitate electronic communications and to make each B/L number unique.
– Negotiable B/L: The B/L is a title document to the goods, issued “to the order of” a party, usually the shipper, whose endorsement is required to effect is negotiation.  Thus, a shipper’s order (negotiable) B/L can be bought, sold, or traded while goods are in transit and is commonly used for letter-of-credit transactions.   The buyer must submit the original B/L to the carrier in order to take possession of the goods.

– Non-Negotiable B/L: See Straight B/L. Sometimes means a file copy of a B/L.
– “Onboard” B/L: B/L validated at the time of loading to transport. Onboard Air, Boxcar, Container, Rail, Truck and Vessel are the most common types.
– Optional Discharge B/L: B/L covering cargo with more than one discharge point option possibility.
– “Order” B/L: See Negotiable B/L.
– Original B/L: The part of the B/L set that has value, especially when negotiable; rest of set are only informational file copies. Abbreviated as OBL.
– Received for Shipment B/L: Validated at time cargo is received by ocean carrier to commence movement but before being validated as “Onboard”.
– Reconciled B/L: B/L set which has completed a prescribed number of edits between the shippers instructions and the actual shipment received. This produces a very accurate B/L.
– Short Term B/L: Opposite of Long Form B/L, a B/L without the Terms & Conditions written on it. Also known as a Short Form B/L. The terms are incorporated by reference to the long form B/L.
– Split B/L: One of two or more B/L’s which have been split from a single B/L.
– Stale B/L: A late B/L; in banking, a B/L which has passed the time deadline of the L/C and is void.
– Straight (Consignment) B/L: Indicates the shipper will deliver the goods to the consignee.  It does not convey title (non-negotiable).  Most often used when the goods have been pre-paid.
– “To Order” B/L: See Negotiable B/L.
– Unique B/L Identifier: U.S. Customs’ standardization: four-alpha code unique to each carrier placed in front of nine digit B/L number; APL’s unique B/L Identifier is “APLU”. Sea-land uses “SEAU”. These prefixes are also used as the container identification.
– Voided B/L: Related to Consolidated B/L; those B/L’s absorbed in the combining process. Different from Canceled B/L.

 

Bill of Lading Port of Discharge 

Port where cargo is discharged from means of transport.

 

Bill of Sale 

Confirms the transfer of ownership of certain goods to another person in return for money paid or loaned.

 

Bill to Party 

Customer designated as party paying for services.

 

Billed Weight

The weight shown in a waybill and freight bill, i.e, the invoiced weight.

 

BIMCO (The Baltic and International Maritime Council)

Association whose main object is to promote and defend the interests of shipowners. It also has a membership of shipbrokers and has been responsible for contributing to the creation of a large number of Charter-Parties and other shipping documents.

 

Bimcosale

Standard bill of sale published by BlMCO, used for the purchase of ships.

 

Black list

List of countries published by a particular government which will not allow ships to trade at its ports if they have traded at ports in the countries on that list.

 

Blanket Bond 

A bond covering a group of persons, articles or properties.

 

Blanket Rate 

– A rate applicable to or from a group of points.
– A special rate applicable to several different articles in a single shipment.

 

Blanket Waybill 

A waybill covering two or more consignments of freight.

 

Blind Shipment 

A B/L wherein the paying customer has contracted with the carrier that shipper or consignee information is not given.

 

Block Stowage 

Stowing cargo destined for a specific location close together to avoid unnecessary cargo movement.

 

Blocked Trains 

Railcars grouped in a train by destination so that segments (blocks) can be uncoupled and routed to different destinations as the train moves through various junctions. Eliminates the need to break up a train and sort individual railcars at each junction.

 

Blocking or Bracing 

Wood or metal supports (Dunnage) to keep shipments in place to prevent cargo shifting.

 

Bls. 

Abbreviation for “Bales.”

 

Blt

Built

 

B/N – Booking Note

Document containing the terms and conditions of a contract between a shipper and a shipping line for the carriage of goods on a particular ship between specified ports or places.

B.N.A.

British North America.

 

Board 

To gain access to a vessel.

 

Board Feet 

The basic unit of measurement for lumber. One board foot is equal to a oneinch board, 12 inches wide and one foot long. Thus, a board ten feet long, 12 inches wide, and one inch thick contains ten board feet.

 

Bobtail 

Movement of a tractor, without trailer, over the highway.

 

Boffers or BO 

(asking) best offers.

 

Bogie 

A set of wheels built specifically as rear wheels under the container.

 

Bolster 

A device fitted on a chassis or railcar to hold and secure the container.

 

Bond Port 

Port of initial Customs entry of a vessel to any country. Also known as First Port of Call.

 

Bonded Freight 

Freight moving under a bond to U.S. Customs or to the Internal Revenue Service, and to be delivered only under stated conditions.

 

Bonded Warehouse 

A warehouse authorized by Customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

 

Book Space (to)

As a shipper or his agent, to reserve space in a ship for the carriage of certain defined goods from a place of loading to a place of discharging.

 

Booking 

Arrangements with a carrier for the acceptance and carriage of freight; i.e., a space reservation.

 

Booking List

List of all cargo bookings for a particular sailing. It is compiled by a shipping line from lists sent in by the line’s agents responsible for taking bookings for the various ports on the ship’s itinerary.

Booking Number 

Reservation number used to secure equipment and act as a control number prior to completion of a B/L.

 

Both to Blame Collision Clause

Clause in a Bill of Lading or charter party which stipulates that, in the event of a collision between two ships where both are at fault, the owners of the cargo must indemnify the carrying ship against any amount paid by the carrying ship to the non-carrying ship for damage to that cargo. This clause arises because, under American law, a cargo owner is not able to make any recovery from the carrier for damage resulting from negligent navigation but may instead sue the non-carrying ship which in turn seeks recovery from the carrying ship in proportion of his fault. This would render a carrier indirectly liable for a loss for which he is not directly liable to the cargo owner. The clause has, however, been held to be invalid in the American courts when incorporated with a common carrier.

 

Bottom Side Rails 

Structural members on the longitudinal sides of the base of the container.

 

Bottom-Air Delivery 

A type of air circulation in a temperature control container. Air is pulled by a fan from the top of the container, passed through the evaporator coil for cooling, and then forced through the space under the load and up through the cargo. This type of airflow provides even temperatures.

 

Bow 

The front of a vessel.

 

Boxcar 

A closed rail freight car.

 

Box Rate

Rate of freight per shipping container, as opposed to per ton or per cubic meter. Since a box rate is unaffected by the actual quantity loaded into the container, it is in shipper’s interest to load as much cargo as possible, subject to the maximum allowed, to effectively reduce the cost of carriage for each ton or cubic meter.

 

Breakbulk

Relating to cargo lifted on and off ships one piece or bundle at a time by means of cranes or derricks, as opposed to cargo shipped on trailers or in shipping containers. Such goods may be described as breakbulk cargo; the ships which carry them are sometimes referred to as breakbulk ships which are operated on a regular basis between advertised ports, provide a breakbulk service. The term breakbulk is often used to denote the opposite of containerized.

 

Break Bulk (to)

To commence to discharge a bulk cargo. It is sometimes a condition of carriage that freight, or some percentage of it, becomes payable on breaking bulk.

Bridge Point

An inland location where cargo is received by the ocean carrier and then moved to a coastal port for loading.

 

Bridge Port

A port where cargo is received by the ocean carrier and stuffed into containers but then moved to another coastal port to be waded on a vessel.

 

Broken stowage

Amount of unused space in a ship or a hold by virtue of the irregular shape of the cargo. For example, the space taken up by a bundle of bars of irregular length would be calculated on the basis of the longest length, as if all the bars were of that length.

 

Broker 

A person who arranges for transportation of loads for a percentage of the revenue from the load.

 

Brokerage

Fee or commission payable by a shipowner to a shipbroker for successful negotiation of a charter, It is normally expressed as a percentage of the freight or hire and demurrage. Brokerage may or may not be payable, according to the terms of the Charter-Party, should the voyage or period of the charter not be completed.

 

Bulk Cargo 

Not in packages or containers; shipped loose in the hold of a ship without mark and count.” Grain, coal and sulfur are usually bulk freight.

 

Bulk-Freight Container 

A container with a discharge hatch in the front wall; allows bulk commodities to be carried.

 

Bulkhead 

– A partition separating one part of a ship, freight car, aircraft or truck from another part.

 

Bull Rings 

Cargo-securing devices mounted in the floor of containers; allow lashing and securing of cargo.

 

Bunker Charge 

An extra charge sometimes added to steamship freight rates; justified by higher fuel costs. (Also known as Fuel Adjustment Factor or FAF.)

 

Bunkers 

A Maritime term referring to Fuel used aboard the ship. Coal stowage areas aboard a vessel in the past were in bins or bunkers.

 

B/S – Bunker Surcharge

Extra charge applied by shipping lines, or set by liner conferences on behalf of their members, to reflect fluctuations in the cost of bunkers. This surcharge is expressed either as an amount per freight ton or as a percentage of the freight. Also referred to as bunker adjustment factor (BAF), or fuel oil surcharge (FOS), or fuel adjustment factor (FAF).

 

BT – Berth Terms

Expression signifying that the contract of carriage is subject to the customs and conditions of the ports of loading and discharging.

C

 

C&F Terms of Sale, or INCOTERMS. 

Obsolete, albeit heavily used, term of sale meaning “cargo and freight” whereby Seller pays for cost of goods and freight charges up to destination port. In July, 1990 the International Chamber of Commerce replaced C&F with CFR.

 

C.A.

Central America (i.e. – WCCA or ECCA depending which side).

 

CABAF

Currency and bunker adjustment factor surcharge applied by some shipping lines, and set by some liner conferences on behalf of their members, which consists of a currency adjustment factor and a bunker adjustment factor combined. This surcharge is normally expressed as a percentage of the freight rate.

 

Cabotage

Water transportation term applicable to shipments between ports of a nation; commonly refers to coast-wise or inter-coastal navigation or trade. Many nations, including the United States, have cabotage laws which require national flag vessels to provide domestic interport service.

 

CAD – Cash Against Documents

Term of sale whereby the buyer receives the commercial documents, including the Bill of Lading, which is the document of title, on paying the seller for the goods. This term is also used to qualify a contract of carriage in which the carrier releases the Bill of Lading to the shipper in exchange for the goods.

 

CAF – Currency Adjustment Factor

Surcharge applied to freight rates by shipping lines or set by liner conferences on behalf of their members. The purpose of the currency adjustment factor is embodied in the E.S.C. (European Shippers’ Councils) / C.E.N.S,A. (Council of European and Japanese national Shipowners’ associations ) Code. It is to ensure that the revenue of the shipping lines is unaffected by the lines in relation to the tariff currency. The code provides formulae, adopted by many conferences, for calculating the CAF and, since the values of currencies can move upwards as well as downwards, the CAF which is normally expressed as a percentage of the freight, maybe negative as well as positive. Thus a tariff rate of $100 becomes $108 when subject to a plus 8 per cent CAF.

 

Calendar Month

A “month” in a time charter usually means a calendar month, which extends from the given day of the month to the day of corresponding number in next month. If that next month, being shorter, does not have a day of that number, the calendar month expires on the last day of that month. For example, if a ship is delivered on August 31st, the 1st month’s hire expires September 30th; the next month’s hire would be payable on October 31st, not October 30th.

 

Canal Transit Dues

Charge levied by a canal authority, such as that for the Suez Canal, for transiting. This charge is based on the ship’s tonnage.

 

Cancellation (of a charter)

Repudiation of the contract, most often by the voyage charterer when the ship misses her canceling date, or by a time charterer when the ship is off hire for more than the period stipulated in the Charter-Party.

 

Cancellation Clause

Charter Party clause specifying the last date known, as the canceling date, on which a ship must be available to the charterer at the agreed place. If the ship arrives after the canceling date, the charterer may have the option to cancel the contract.

 

Canceling Date

Last date, agreed in a voyage Charter-Party or time Charter-Party, by which a ship must be available to the charterer at the agreed place at the commencement of the contract. If the ship is not available by that date, the charterer may have the option to cancel the charter under certain circumstances and clauses of the Charter Party.

 

Captain’s Protest 

A document prepared by the captain of a vessel on arriving at port; shows conditions encountered during voyage, generally for the purpose of relieving ship owner of any loss to cargo and shifting responsibility for reimbursement to the insurance company.

 

Carnet

A Customs document permitting the holder to temporarily carry or send merchandise into certain foreign countries (for display, demonstration or similar purposes) without paying duties or posting bonds. Any of various Customs documents required for crossing some international borders.

 

Carfloat

A barge equipped with tracks on which up to about 12 railroad cars are moved in harbors or inland waterways.

 

Car Pooling 

Use of individual carrier/rail equipment through a central agency for the benefit of carriers and shippers.

 

Car Seal 

Metal strip and lead fastener used for locking freight car or truck doors. Seals are numbered for record purposes.

 

Cargo

Freight loaded into a ship.

 

Cargo Manifest 

A manifest that lists all cargo carried on a specific vessel voyage.

 

Cargo NOS 

Cargo Not Otherwise Specified. Usually the rate entry in a tariff that can apply to commodities not covered under a specific item or subitem in the applicable tariff.

 

Cargo Preference 

Cargo reserved by a Nation’s laws for transportation only on vessels registered in that Nation.  Typically the cargo is moving due to a direct or indirect support or activity of the Government.

 

Cargo Sharing

Reserving by the authorities of a country of the ocean carriage of its exports and imports to the ships of its own fleet and that of the countries with which it trades, usually in equal proportions, often allowing the ships of other countries a smaller share.

 

Cargo Tonnage

Most ocean freight is billed on the basis of weight or measurement tons (W/M). Weight tons can be expressed in short tons of 2000 pounds, long tons of 2240 pounds or metric tons of 1000 kilos (2204.62 pounds). Measurement tons are usually expressed as cargo measurement of 40 cubic feet (1.12 meters) or cubic meters (35.3 cubic feet.)

 

Cargoworthiness

Fitness of a ship to carry a particular cargo.

 

Cargoworthy

Said of a ship, being fit to carry a particular cargo.

 

Carload Rate 

A rate applicable to a carload of goods.

 

Carrier 

Any person or entity who, in a contract of carriage, undertakes to perform or to procure the performance of carriage by rail, road, sea, air, inland waterway or by a combination of such modes.

 

Carrier’s Certificate 

A certificate required by U.S. Customs to release cargo properly to the correct party.

 

Carryings

Quantity of cargo carried over a period of time by a shipping line or by all the members of a liner conference. This quantity is a factor in determining the profitability of the service and the need, if any, to apply an increase to the freight rates.

 

Cartage 

Usually refers to intracity hauling on drays or trucks.

Cartment

Customs form permitting inbond cargo to be moved from one location to another under Customs control, within the same Customs district. Usually in motor carrier’s possession while draying cargo.

 

Cash Against Documents (CAD) 

Method of payment for goods in which documents transferring title are given the buyer upon payment of cash to an intermediary acting for the seller, usually a commission house.

 

Cash in Advance (CIA) 

A method of payment for goods in which the buyer pays the seller in advance of the shipment of goods. Usually employed when the goods, such as specialized machinery, are built to order.

 

Cash With Order (CWO) 

A method of payment for goods in which cash is paid at the time of order and the transaction becomes binding on both buyer and seller.

 

CBM (CM) 

Abbreviation for “Cubic Meter.”

 

CBR – Commodity Box Rate

Freight rate per shipping container for a particular commodity.

 

CE 

Abbreviation for “Consumption Entry.” The process of declaring the importation of foreignmade goods for use in the United States.

 

Centrocon

Voyage Charter-Party used for shipments of grain from the River Plate.

 

Cells 

The construction system employed in container vessels; permits ship containers to be stowed in a vertical line with each container supporting the one above it.

 

Center of Gravity 

The point of equilibrium of the total weight of a containership, truck, train or a piece of cargo.

 

Certificate 

– A document certifying that merchandise (such as of Inspection perishable goods) was in good condition immediately prior to its shipment.
– The document issued by the U.S. Coast Guard certifying an American flag vessel’s compliance with applicable laws and regulations.

 

Certificate of Origin 

A certified document showing the origin of goods; used in international commerce.

 

Cesser Clause

Clause in a voyage Charter-Party which seeks to relieve the charterer of all responsibility under the contract once the cargo has been shipped. Often this clause incorporates a provision for the shipowner to have a lien on the cargo for freight, deadfreight and demurrage.

 

CFS 

Abbreviation for “Container Freight Station.” A shipping dock where cargo is loaded (“stuffed”) into or unloaded (“stripped”) from containers. Generally, this involves less than containerload shipments, although small shipments destined to same consignee are often consolidated. Container reloading from/to rail or motor carrier equipment is a typical activity.

 

CFR – Cost and Freight

Sales term denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge. Risk of loss and damage generally passes to the buyer when the goods pass ship’s rail at the port of loading.

 

Charter

The chartering or hiring of a ship. A ship which is hired out is said to be on charter and the time during which a ship is hired out is known as the period of the charter.

 

Charter by Demise

See bareboat chatter.

 

Charter in (to)

To hire a ship from a shipowner. This expression is sometimes used more specifically to denote that the ship is being chartered for a specific voyage or purpose, supplementing a shipping company s fleet whose ships are fully committed or more profitably employed elsewhere.

 

Charter out (to)

To hire a ship out to a charterer. This expression is sometimes used to denote, more specifically, the hiring out of a ship which is temporarily surplus to the requirements of a shipowner or shipping company.

 

Charterable

Said of a quantity of goods that is sufficient to fill a ship taken on charter terms.

 

Charterer

Person or company who hires a ship from a shipowner for a period of time (see Time charterer) or who reserves the entire cargo space of a ship for the carriage of goods from a port or ports of loading to a port or ports of discharge (see Voyage charterer).

 

Charterer’s Market

Weak market, with comparatively low freight rates.

 

Charter Party 

A written contract between the owner of a vessel and the person desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate and ports involved in the trip.

 

Charterer’s Bill of Lading

Bill of Lading issued by a charterer and signed by him or his agent. Under certain circumstances, the charterer who signs his own bills of lading may be deemed to be the carrier, thus taking on all responsibilities of a carrier.

 

Chartering Agent

Shipbroker that acts on behalf of a charterer in the negotiations leading to the chartering of a ship. He is the counterpart to the owner’s broker, the shipowner who acts on behalf of the shipowner.

 

Charter Party Bill of Lading

Bill of Lading issued for a shipment of cargo on a chartered ship when it is intended that the receiver be bound by the terms and conditions of the Charter-Party. A clause to this effect incorporating the date and place of signature of the Charter-Party appears on the Bill of Lading.

 

Charter Party Broker

A broker that will contract at the actual market level, but he will always try to phrase every single Charter-Party clause so that it will be as advantageous as possible to his principal. It must be stressed that a Charter-Party that has not been carefully drafted may cause one of the parties considerable loses.

 

Chassis 

A frame with wheels and container locking devices in order to secure the container for movement.

 

Chock 

A piece of wood or other material placed at the side of cargo to prevent rolling or moving sideways.

 

Chopt – in Charterers’ Option

Term in a Charter-Party which stipulates that the charterers have a choice in specific circumstances. For example, the contract may allow for discharge at port ‘A’ or pert ‘B’ in charterers’ option, with the provision that one port is to be declared to the shipowner by a certain point in the voyage.

 

CI 

Abbreviation for “Cost and Insurance.” A price that includes the cost of the goods, the marine insurance and all transportation charges except the ocean freight to the named point of destination.

 

CIF – Cost Insurance and Freight

Sales tern denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge and for the insurance of the goods covering the period of carriage involved in the contract of sale. The risk of loss or damage generally passes to the buyer when the goods pass ship’s rail at the port of loading.

 

CIF&C 

Price includes commission as well as CIF.

 

CIF&E 

Abbreviation for “Cost, Insurance, Freight And Exchange.”

 

CIFCI 

Abbreviation for “Cost, Insurance, Freight, Collection And Interest.”

 

CIFI&E 

Cost, Insurance, Freight, Interest and Exchange.

 

CIP – Freight or Carriage and Insurance Paid to 

This term is the same as CPT but with the addition that the seller has to procure transport insurance against the risk of loss or damage to the goods during carriage. The seller contracts with the insurer and pays the insurance premium.

 

CKD 

Abbreviation for “Completely Knocked Down.” Parts and subassemblies being transported to an assembly plant.

 

CL 

Abbreviation for “Carload” and “Containerload”.

 

Claim 

A demand made upon a transportation line for payment on account of a loss sustained through its alleged negligence.

 

Classification 

A publication,such as Uniform Freight Classification (railroad) or the National Motor Freight Classification (motor carrier), that assigns ratings to various articles and provides bill of lading descriptions and rules.

 

Classification Rating

The designation provided in a classification by which a class rate is determined.

 

Classification Yard

A railroad yard with many tracks used for assembling freight trains.

Clause Paramount

Clause in a Bill of Lading or Charter-Party which stipulates that the contract of carriage is governed by the Hague Rules or Hague-Visby Rules or the enactment of these rules of the country having jurisdiction over the contract.

 

Claused Bill of Lading

Bill of Lading containing one, or more than one, superimposed clause which may either specify a defect to the cargo or its packing or may be any comment of the master regarding the carriage of the goods, for example that the weighs or contents of a consignment are unknown to him, or that the goods shipped on deck are at shipper’s risk.

 

Clayton Act

An antitrust act of the U.S. Congress making price discrimination unlawful.

 

Clean Bill of Lading

Bill of Lading which contains no superimposed clause specifying any defect to the cargo or its packing; it indicates that the cargo has been received by the ship in apparent good order and condition. Clean bills of lading are often required by banks who use them as collateral security against money advanced for the purchase of the goods described therein.

 

Cleaning in Transit 

The stopping of articles, such as peanuts, etc., for cleaning at a point between the point of origin and destination.

 

Clean Receipt

Receipt given by anyone receiving cargo into his care or possession bearing no clausing or notation indicating loss or damage, thus indicating that the goods were received in apparent good order and condition.

 

Clear Days

Used with a number to denote the period of time excluding the first and the last days, for example ten clear days.

 

Clearance

The size beyond which cars or loads cannot use Limits bridges, tunnels, etc.

 

Cleat 

A strip of wood or metal used to afford additional strength, to prevent warping, or to hold in place.

 

Clip-On 

Refrigeration equipment attachable to an insulated container that does not have its own refrigeration unit.

 

Closed Conference

Liner conference in which the member lines vote on the admission of a new line. The purpose of this is to restrict the number of ships in a particular trade.

 

Closing date

Final date for delivering cargo to a liner ship. Usually considered to be the first day of the laycan or shipping period. Can also be a cargo cutoff date.

 

CM 

Abbreviation for “Cubic Meter” (capital letters).

 

cm 

Abbreviation for “centimeter.”

 

Coasthire

Time Charter-Party, the full name of which is the Chamber of Shipping Coasting and Short Sea daily Hire Charter Party.

 

Coasting Broke

Shipbroker who specializes in the negotiation of charters for coastwise or short sea voyages.

 

Coastwise 

Water transportation along the coast.

 

COA – Contract of Affreightment

Is usually a contract for the carriage of a specified type and quantity of cargo, covering two or several shipments and running over a long period. In the COA it is the cargo and not the vessel that has a central position.

 

COD 

Abbreviation for:
– Collect (cash) on Delivery.
– Carried on Docket (pricing).

 

COFC 

Abbreviation for the Railway Service “Container On Flat Car.”

 

COGSA

Carriage of Goods by Sea Act. U.S. federal codification passed in 1936 which standardizes carrier’s liability under carrier’s bill of lading. U.S. enactment of The Hague Rules.

 

Collecting 

A bank that acts as an agent to the seller’s bank (the presenting bank). The collecting bank assumes no responsibility for either the documents or the merchandise.

Collection

A draft drawn on the buyer, usually accompanied by documents, with complete instructions concerning processing for payment or acceptance.

 

Combination Export Mgr. 

A firm that acts as an export sales agent for more than one noncompeting manufacturer.

 

Combination Rate 

A rate made up of two or more factors, separately published.

 

Combined Transport Bill of Lading or Combined Transport Document 

Document evidencing a contract between shipper and a shipping line for carriage of goods on a voyage involving at least two legs. Normally, the issuer of this document is responsible for the goods from the time they are received into his care until the time they are delivered at destination.

 

Commercial Invoice 

Represents a complete record of the transaction between exporter and importer with regard to the goods sold. Also reports the content of the shipment and serves as the basis for all other documents about the shipment.

 

Commodity 

Article shipped. For dangerous and hazardous cargo, the correct commodity identification is critical.

 

Commodity Rate

A rate published to apply to a specific article or articles.

 

Common Carrier

Person or company advertising a service involving the carriage of goods to and from ports on a particular route. A common carrier is required by law to accept all cargo offered, except dangerous ones, and to make a reasonable charge for their carriage.

 

Common Law

Law that derives its force and authority from precedent, custom and usage rather than from statutes, particularly with reference to the laws of England and the United States.

 

Common Short Form Bill of Lading

Type of Bill of Lading which may be used by any shipping line since neither the name of the line nor its conditions of carriage are printed on it: the name is typed on and a printed clause states the full terms and conditions are available on request.

 

Competitive Broker

A broker engaged in efforts to bring together an owner’s confidential broker with the broker of a suitable charterer is engaged in competitive chartering and is called a competitive broker.

 

Conbill

Bill of Lading approved by the BIMCO for use when no Charter-Party is signed.

 

Concealed Damage 

Damage that is not evident from viewing the unopened package.

 

Conference

Two or more shipping lines operating a service in common between designated geographical areas. The lines agree a set of freight rates and any special rates for shippers and each line charges the same as the others. The ships used are of types suitable for the trade. Unlike tramp shipping where freight rates are function of daily supply and demand, conference rates are relatively stable: base rates are altered by means of a general rate increase which in many cases is once a year. Lines in a conference are governed by the rule of membership, which may include rights to load or discharge at certain ports, and pooling of cargo. Also referred to as a freight conference or a shipping conference or a liner conference.

 

Constant

Refers to those items of a more or less permanent nature, such as crew and effects, stores, spare parts in excess of rule requirement (for example, a spare propeller and/or a spare tail shaft, neither of which are required by the rules), which have not been included in the lightweight and consequently must be deduced from the deadweight when determining the deadweight available for cargo. The word “constant” itself is a misnomer, since the constant is not forever constant but may vary from voyage to voyage depending on the amount of stores and spares on board.

 

CT – Conference Terms

Qualification to a freight rate which signifies that it is subject to the standard terms and conditions of the particular liner conference. These are normally set out in the conference’s tariff.

 

Confirmed Letter of Credit 

A letter of credit, issued by a foreign bank, whose validity has been confirmed by a domestic bank. An exporter with a confirmed letter of credit is assured of payment even if the foreign buyer or the foreign bank defaults.

 

Confirming Bank 

The bank that adds its confirmation to another bank’s (the issuing bank’s) letter of credit and promises to pay the beneficiary upon presentation of documents specified in the letter of credit.

 

Congenbill

Bill of Lading intended to be used with Gencon charter parties One of the clauses in this Bill of Lading states that it incorporates all the terms of the Charter-Party.

 

Congestion Surcharge

Extra charge applied by shipping lines, or set by liner conferences on behalf of their members, to reflect the cost of delay to their ships at a particular port caused by congestion.

 

Conlinebill

Liner Bill of Lading published by the BIMCO

 

Conline Booking Note

Liner Booking Note published by  BIMCO.

 

Connecting Carrier

A carrier which has a direct physical connection with, or forms a link between two or more carriers.

 

Consecutive Vovages

Successive voyages of a ship on charter to one party. The Charter-Party may stipulate the number of voyages or the total quantity of cargo to be carried or the total period during which the shipowner performs the maximum number of voyages. Consecutive is often abbreviated to consec.

 

Consignee

Person to whom goods are to be delivered by the carrier at the place of destination.

 

Consignee Mark 

A symbol placed on packages for identification purposes; generally a triangle,square, circle, etc. with letters and/or numbers and port of discharge.

 

Consignment

(1) A stock of merchandise advanced to a dealer and located at his place of business, but with title remaining in the source of supply.
(2) A shipment of goods to a consignee.

 

Consignor

Person who places goods in the care of a carrier for delivery to a person known as a consignee.

 

Consolidation 

Cargo containing shipments of two or more shippers or suppliers. Containerload shipments may be consolidated for one or more consignees.

 

Consolidator 

A person or firm performing a consolidation service for others. The consolidator takes advantage of lower full carload (FCL) rates, and savings are passed on to shippers.

 

Construction Differential Subsidy 

A program whereby the U.S. government attempted to offset the higher shipbuilding cost in the U.S. by paying up to 50% of the difference between cost of U.S. and nonU.S. construction. The difference went to the U.S. shipyard. It is unfunded since 1982.

 

Consul 

A government official residing in a foreign country who represents the interests of her or his country and its nationals.

Consular Declaration 

A formal statement describing goods to be shipped; filed with and approved by the consul of the country of destination prior to shipment.

 

Consular Invoice 

A document, certified by a consular official, is required by some countries to describe a shipment. Used by Customs of the foreign country, to verify the value, quantity and nature of the cargo.

 

Consular Visa 

An official signature or seal affixed to certain documents by the consul of the country of destination.

 

Consumption Entry (CE) 

The process of declaring the importation of foreign-made goods into the United States for use in the United States.

 

Container

A truck trailer body that can be detached from the chassis for loading into a vessel, a rail car or stacked in a container depot. Containers may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or equipped with interior devices. A container may be 20 feet, 40 feet, 45 feet, 48 feet or 53 feet in length, 8’0” or 8’6” in width, and 8’6” or 9’6” in height.

 

Container Booking 

Arrangements with a steamship line to transport containerized cargo.

 

Container Freight Station

See CFS.

 

Container Manifest 

Document showing contents and loading sequence of a container.

 

Container Pool 

An agreement between parties that allows the efficient use and supply of containers. A common supply of containers available to the shipper as required.

Container Terminal 

An area designated for the stowage of cargoes in container; usually accessible by truck, railroad and marine transportation. Here containers are picked up, dropped off, maintained and housed.

 

Container Yard (CY) 

A materialshandling/storage facility used for completely unitized loads in containers and/or empty containers. Commonly referred to as CY.

 

Containerizable Cargo 

Cargo that will fit into a container and result in an economical shipment.

 

Containerization 

Stowage of general or special cargoes in a container for transport in the various modes.

 

Container Load 

A load sufficient in size to fill a container either by cubic measurement or by weight.

 

Contraband 

Cargo that is prohibited.

 

Contract 

A legally binding agreement between two or more persons/organizations to carry out reciprocal obligations or value.

 

Contract Carrier 

Any person not a common carrier who, under special and individual contracts or agreements, transports passengers or property for compensation.

 

Contractor

Person or company having a loyalty contract with a liner conference and entitled, subject to having complied with the terms of the contract, to a contractor’s rebate.

 

Controlled Atmosphere

Sophisticated, computercontrolled systems that manage the mixtures of gases within a container throughout an intermodal journey reducing decay.

 

COP – Custom of the Port

Established practice at a port, which becomes part of a contract of carriage unless otherwise provided for in the contract. Frequent examples are daily rate of loading and discharging, and the point where a carrier’s responsibility ends in a liner terms contact.

 

Copy Bill of Lading

Reproduction of a Bill of Lading intended to be used for administrative purposes only and not for taking delivery of the goods or for transferring title to them.

 

Corner Posts 

Vertical frame components fitted at the corners of the container, integral to the corner fittings and connecting the roof and floor structures. Containers are lifted and secured in a stack using the castings at the ends.

 

Correspondent Bank

A bank that, in its own country, handles the business of a foreign bank.

 

Cost, Insurance and Freight (CIF) 

Cost of goods, marine insurance and all transportation (freight) charges are paid to the foreign point of delivery by the seller.

 

Count (as laytime) (to)

To be included in the calculation of laytime in a voyage charter. Whether a period, such as during a week-end or a strike, counts as laytime is subject to the agreement of shipowner and charterer save that, once all the time allowed has been used, the remaining period until completion of loading or discharging, as the case may be, counts without exception. A typical voyage Charter-Party clause might stipulate that ‘time between 1700 hours Friday and 0800 hours Monday not to count, even if used.

 

Counter-offer or Counter

Response to an offer which in some way varies the terms or conditions of that offer, by virtue of a party making a counter-offer, the offer itself is no longer binding. Offer and counteroffer form the basis of the negotiations involved in chartering.

 

Countervailing Duty 

An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export.

 

CP – Charter-Party

Document containing all the terms and conditions of the contract between a shipowner and a charterer, and signed by both parties or their agents, for the hire of a ship or the space in a ship. Most Charter-Parties are standard forms with printed clauses and spaces or boxes in which details relating to the individual charter, such as freight, laytime, demurrage, the ship’s construction, speed and consumption, are inserted. The printed documents may be varied and / or added to by agreement of the two parties. Sometimes spelled Charter Party.

 

CPT – Freight or Carriage Paid to

Means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss and damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship’s rail. It can be used for all modes of transport including multimodal operations and container or roll-on/roll-off traffic by trailers and ferries. When the seller has to furnish a Bill of Lading, waybill or carrier’s receipt, he dully fulfills his obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.

 

CQD – Customary Quick Despatch

Means that the charterer must load and / or discharge as fast as is reasonably possible in the circumstances prevailing at the time of loading or discharging. There is no provision for demurrage or despatch. From the standpoint of an owner, it gives very little assurance, if any, of a quick load and/or discharge.

 

Cross Member 

Transverse members fitted to the bottom side rails of a container, which support the floor.

 

Cst. – Centistokes

Measure of the viscosity of oils. The greater the number of centistokes, the higher the viscosity of a grade of oil.

 

Cu. 

An abbreviation for “Cubic.” A unit of volume measurement.

 

Cube Out 

When a container or vessel has reached its volumetric capacity before its permitted weight limit.

 

Cubic Foot 

1,728 cubic inches.  A volume contained in a space measuring one foot high, one foot wide and one foot long.

 

Customhouse 

A government office where duties are paid, import documents filed, etc., on foreign shipments.

 

Customhouse Broker

A person or firm, licensed by the treasury department of their country when required, engaged in entering and clearing goods through Customs for a client (importer).

 

Customs 

Government agency charged with enforcing the rules passed to protect the country’s import and export revenues.

 

Customs Bonded Warehouse 

A warehouse authorized by Customs to receive duty-free merchandise.

 

Customs Entry 

All countries require that the importer make a declaration on incoming foreign goods. The importer then normally pays a duty on the imported merchandise. The importer’s statement is compared against the carrier’s vessel manifest to ensure that all foreign goods are properly declared.

 

Customs Invoice 

A form requiring all data in a commercial invoice along with a certificate of value and/or a certificate of origin. Required in a few countries (usually former British territories) and usually serves as a seller’s commercial invoice.

 

Customs of the Port

A phrase often included in charter parties and freight contracts referring to local rules and practices which may impact upon the costs borne by  the various parties.

 

Cut-Off Time 

The latest time cargo may be delivered to a terminal for loading to a scheduled train or ship.

 

Cwt. 

Hundred weight (United States, 100 pounds: U.K.,112)

 

CY 

– Abbreviation for Container Yard.
– The designation for full container receipt/delivery.

D

 

D&H 

Abbreviation for “Dangerous and Hazardous” cargo.

 

D/A – Disbursements Account

Account rendered by a ship’s agent at a port to the shipowner for all sums paid out in respect of the ship’s call at the port such as pilotage, towage, any cash advance to the master, supply of provisions and stores and the agency fee. Receipts known as vouchers support the account,

 

Damage for Detention

Sum of money payable to the shipowner by the voyage charterer, or anyone who becomes a party to the terms of the charter, for failing to load and/or discharge cargo within the time allowed in the Charter-Party. It is payable for each day or part thereof until completion of loading or discharging, as the case may be. Unlike demurrage, the amount is not agreed in advance, but is normally set by the Court either at the same rate as demurrage if such a rate has been incorporated into the Charter-Party, or based on the daily running cost of the ship plus any profit which shipowner might reasonably have expected. These damages apply when the Charter-Party contains no provision for demurrage or when the agreed period of demurrage is exceeded.

 

D.B.A.

Abbreviation for “Doing Business As.” A legal term for conducting business under a registered name.

 

DDC

Abbreviation for “Destination Delivery Charge.” A charge, based on container size, that is applied in many tariffs to cargo. This charge is considered accessorial and is added to the base ocean freight. This charge covers crane lifts off the vessel, drayage of the container within the terminal and gate fees at the terminal operation.

 

Deadhead 

One leg of a move without a paying cargo load.  Usually refers to repositioning an empty piece of equipment.

 

Deadfreight

Amount of money payable by a shipper or charterer to a shipowner or shipping line for failing to load the quantity of cargo stipulated in the contract of carriage. Deadfreight is normally payable at the full freight rate but may be reduced by the loading and/or discharging expenses if these were included in the freight.

 

Deadweight Cargo

Cargo of one metric ton which measures one cubic meter or less. Freight on deadweight cargo is generally payable on the weight, that is, per metric ton.

 

Deadweight 

The number of tons of 2,240 pounds that a vessel can transport of cargo, stores and bunker fuel. It is the difference between the number of tons of water a vessel displaces “light” and the number of tons it displaces when submerged to the “load line.”

 

Deck Cargo

Cargo carried on, and secured to, the open deck of a ship. Cargoes traditionally carried on deck include dangerous goods, timber and goods, which are too large for the hatchway. Consideration needed when contemplating carrying cargo on deck are: the strength of the deck, the strength of the hatch covers if cargo is stowed on the top of them, the safety of the crew and their ability to go from one part of the ship to another, the need to ensure that cargo is not stacked so high as to impede navigation. Deck cargoes are carried at the risk of the charterer, shipper or Bill of Lading holder, as the case maybe.

 

Deconsolidation Point 

Place where loose or other non-containerized cargo is ungrouped for delivery.

 

Deficit Weight 

The weight by which a shipment is less than the minimum weight.

 

Delivery (of) a cargo

The conveying of goods by a carrier to the receiver or Bill of Lading bolder at the place of destination in the contract of carriage.

 

Dely – Delivery (of a ship)

Placing of a time chartered ship by the shipowner at the disposal of the charterer at the beginning of the period of the charter, at the time and place agreed. The place of delivery is often a location, such as a pilot station, where it is relatively easy to verify the time of arrival and hence the time when the charter commences. Normally, an on hire survey is carried out as soon as practicable in order to determine the condition of the ship and the quantity of bunkers on board at the time of delivery.

 

Delivery Certificate

Document, signed by or on behalf of the shipowner and the charterer, certifying the time, date and place of delivery of the ship, that is, the placing of the ship at the disposal of the time charterer at the beginning of the period of the charter. The certificate also states the quantity of bunkers on board at the time of delivery and any notations by the charterer concerning the failure of the ship to comply in any respect with the terms of the Charter-Party.

 

Delivery Instructions 

Order to pick up goods at a named place and deliver them to a pier. Usually issued by exporter to trucker but may apply to a railroad, which completes delivery by land. Use is limited to a few major U.S. ports. Also known as shipping delivery order.

 

Delivery Order

Document issued by a liner company’s agent authorizing the party named in it to take delivery of specific cargo from a ship. It is normally issued in exchange for an original Bill of Lading.

 

DEMDES

Demurrage/Despatch money.  (Under vessel chartering terms, the amount to be paid if the ship is loading/discharging slower/faster than foreseen.)

 

Dem – Demurrage

Amount of money paid to the shipowner by the charterer, shipper or receiver, as the case may be, for failing to complete loading and / or discharging within the time allowed in the Charter-Party. The rate of demurrage, normally an amount per day, is agreed in the Charter-Party. Some charters specify that, after a certain period of demurrage, either additional demurrage or damages for detention become payable. When demurrage becomes payable, it is said of a ship that she is on demurrage. Once a ship is on demurrage, no deductions are made for the excepted periods, such as weekends, in the calculation of the demurrage charges; hence it is said that “once on demurrage, always on demurrage.”

 

Demise Charter

See bareboat charter.

 

Demise Clause

Clause in a Bill of Lading stipulating that the contact of carriage is between the shipper or Bill of Lading holder and the shipowner. Bills of lading issued by charterers of a ship on behalf of the owner and master often contain this clause. It should be noted that this clause is inconsistent with the laws of certain countries and may therefore be invalid in those countries.

 

Density 

The weight of cargo  per cubic foot or other unit.

 

Depot, Container 

Container freight station or a designated area where empty containers can be picked up or dropped off.

 

DESP – Despatch or Despatch Money

Amount of money the rate of which is agreed in advance, payable by the shipowner to the charterer, shipper or receiver, as the case may be, for loading and/or discharging in less than the time allowed; normally despatch money, if a provision for it has been made, is at the same rate as, or half the rate of the rate of demurrage agreed in the Charter-Party.

 

DES – Delivery ex ship

This mean that the seller shall make the goods available to the buyer on board the ship at the destination named in the sales contact. The seller has to bear the full cost and risk involved in bringing the goods there.

 

Destination

– The place to which a shipment is consigned.

– The place where carrier actually turns over cargo to consignee or his agent.

 

Destination Control Statements 

Various statements that the U.S. government requires to be displayed on export shipments. The statements specify the authorized destinations.

 

Detention Charge

Charge payable by a shipper or receiver to a shipping line for detaining equipment or a vessel beyond the time allowed.

 

Devanning 

The unloading of a container or cargo van.

 

Deviation Clause

Clause in a Bill of Lading or Charter-Party allowing the shipping line or shipowner to deviate from the agreed route or normal trade route. This clause varies from contract to contract and may permit the ship to call at unscheduled ports for whatever reason, or to deviate to save life or property.

 

DEQ – Delivered ex quay

This mean that the seller makes the goods available to the buyer on the quay at the destination named in the sales contract. The seller has to bear the full cost and risk involved in bringing the goods there. There are two “ex quay” contracts in use, namely “ex quay” (duty paid) and “ex quay” (duties on buyer’s account), in which the liability to clear the goods for import are to be met by the buyer instead of by the seller, parties are recommended always to use the full descriptions of these terms namely “ex quay” (duty paid) or “ex quay” (duty on buyer’s account), or else there may be uncertainty as to who is to he responsible for the liability to clear the goods for import.

 

DF Car 

DamageFree Car. Boxcars equipped with special bracing material.

 

DHD – Demurrage Half Despatch

This term, often found in voyage charter negotiations, signifies that despatch money is to be paid at the daily rate of demurrage. The rate of demurrage precedes this term in the offer. For example, an offer by telex might read USD 5,000 dhd, which signifies that demurrage would be at the rate of U.S. Dollars 5,000 per day and despatch money at U.S. Dollars 2,500 per day.

 

Differential 

An amount added or deducted from base rate to make a rate to or from some other point or via another route.

 

Dirty Bill of Lading

Bill of Lading containing one, or more than one superimposed clause specifying a defect to the cargo or packing, noted at the time the goods are received by the ship. Such a Bill of Lading is also referred to as foul or unclean.

 

Disbursements

Sums paid out by a ship’s agent on behalf of a shipowner at a port and recovered from the shipowner by means of a disbursements account. Typical expenses include pod charges, pilotage, towage and the agent’s fee.

 

Disponent Owner

Person or company who controls the commercial operation of a ship, responsible for deciding the ports of call and the cargoes to be carried, very often, the disponent owner is a shipping line, which time charters a ship and issues its own liner bills of lading. In most cases, Industrial Maritime Carriers are acting as “disponent owners.”

 

Discrepancy Letter of Credit 

When documents presented do not conform to the requirements of the letter of credit (L/C), it is referred to as a “discrepancy.” Banks will not process L/C’s which have discrepancies. They will refer the situation back to the buyer and/or seller and await further instructions.

 

Displacement 

The weight, in tons of 2,240 pounds, of the vessel and its contents. Calculated by dividing the volume of water displaced in cubic feet by 35, the average density of sea water.

 

Diversion 

A change made either in the route of a shipment in transit (see Reconsignment) or of the entire ship.

 

Division 

Carriers’ practice of dividing revenue received from through rates where joint hauls are involved. This is usually according to agreed formulae.

 

Dock 

– For ships, a cargo handling area parallel to the shoreline where a vessel normally ties up.

– For land transportation, a loading or unloading platform at an industrial location or carrier terminal.

 

Dock Dues

Charge levied against a shipowner or ship operator by a port authority for the use of a dock.

 

Door to Door

Said of a service or freight rate provided by a container shipping line whereby goods are loaded into a shipping container at the shipper’s premises and not unloaded until they arrive at the consignee’s premises.

 

Dock Receipt 

A form used to acknowledge receipt of cargo and often serves as basis for preparation of the ocean bill of lading.

 

Docket 

Present a rate proposal to a conference meeting for adoption as a conference group rate.

 

Documents Against Acceptance (D/A) 

Instructions given by a shipper to a bank indicating that documents transferring title to goods should be delivered to the buyer only upon the buyer’s acceptance of the attached draft.

 

Documents Against Payment (D/P) 

An indication on a draft that the documents attached are to be released to the drawee only on payment.

 

Dolly 

A set of wheels that support the front of a container; used when the automotive unit is disconnected.

 

Door-to-Door 

Through transportation of a container and its contents from consignor to consignee. Also known as House to House. Not necessarily a through rate.

 

DOP – Dropping Outward Pilot

Frequently used provision in a time charter to determine the time and place of redelivery of a ship to the owner by the charterer. The hire ceases at the moment the pilot disembarks.

 

D.O.T. 

Department of Transportation.

 

Draft 

– The number of feet that the hull of a ship is beneath the surface of the water.

– An unconditional order in writing, addressed by one party (drawer) to another party (drawee), requiring the drawee to pay at a fixed or determinable future date a specified sum in lawful currency to the order of a specified person.

 

Draft, Bank 

An order issued by a seller against a purchaser; directs payment, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks on checking accounts in a bank.

 

Draft, Clean

A draft to which no documents are attached.

 

Draft, Date

A draft that matures on a fixed date, regardless of the time of acceptance.

Draft, Discounted 

A time draft under a letter of credit that has been accepted and purchased by a bank at a discount.

 

Draft, Sight 

A draft payable on demand upon presentation.

 

Draft, Time 

A draft that matures at a fixed or determinable time after presentation or acceptance.

 

Drawback 

A partial refund of an import fee. Refund usually results because goods are re-exported from the country that collected the fee.

 

Drawee 

The individual or firm that issues a draft and thus stands to receive payment.

 

Drayage 

Charge made for local hauling by dray or truck. Same as Cartage.

 

DRFS 

Abbreviation for “Destination Rail Freight Station.” Same as CFS at destination, except a DRFS is operated by the rail carrier participating in the shipment.

 

Dry Weight

Actual weight of a bulk cargo less an allowance for moisture content.

 

DSU

Delay in Startup Insurance is a policy to protect the seller of a construction project from penalties if the project is not completed  on time.   See “Liquidated Damages.”

 

Dry Cargo

Cargo that is not liquid and normally does not require temperature control.

 

Dry-Bulk Container 

A container constructed to carry grain, powder and other free-flowing solids in bulk. Used in conjunction with a tilt chassis or platform.

 

Dumping 

Attempting to import merchandise into a country at a price less than the fair market value, usually through subsidy by exporting country.

 

DWCC – Deadweight Cargo Capacity or Deadweight Carrying Capacity 

Weight of cargo, which a ship is able to carry when immersed to the appropriate load line, expressed in tons.

 

DWT or DWAT

Deadweight or deadweight all told. Difference between a ship’s loaded and light displacement, consisting of the total weight of cargo, fuel, fresh water, stores and crew which a ship can carry when immersed to a particular load line, normally her summer load line. The deadweight is expressed in tons.

E

 

E.C.M.C.A.

Eastern Central Motor Carriers Association.

 

Economic Speed

This is the speed of a vessel producing the best possible financial results for the owners, giving proper consideration to the following:

(1) The prices of bunkers in the ports en route.

(2) Fuel consumption of the vessel at various speeds.

(3) Daily operating costs.

(4) The net freight per ton of cargo.

(5) Operating profit per day.

(6) Subsequent available employment of vessel and anticipated freight.

 

Edge Protector 

An angle piece fitted over the edge of boxes, crates, bundles and other packages to prevent the pressure from metal bands or other types from cutting into the package.

 

EDI 

Abbreviation for “Electronic Data Interface.” Generic term for transmission of transactional data between computer systems. EDI is typically via a batched transmission, usually conforming to consistent standards.

 

EDIFACT 

International data interchange standards sponsored by the United Nations. See UN/EDIFACT.

 

EIU – Even if Used

Term used in a voyage Charter-Party which provides that time used to load or discharge, as the case may be, during excepted periods is not deducted from the time allowed. A Charter-Party might stipulate that the time does not count from 1700 hours Friday to 0800 hours Monday, even if used. In this case, even if charterers choose to load or discharge in between these hours, the time spent working would not count as laytime.

 

Elevating 

– A charge for services performed in connection with floating elevators.

– Charges assessed for the handling of grain through grain elevators.

 

Elkins Act

An act of Congress (1903) prohibiting rebates, concession, misbilling, etc. and providing specific penalties for such violations.

 

Embargo 

Order to restrict the hauling of freight.

Eminent Domain 

The sovereign power to take property for a necessary public use, with reasonable compensation.

 

Empty Repo 

Contraction for Empty Repositioning. The movement of empty containers.

 

Endorse a Bill of Lading

To sign over a Bill of Lading to another, thus transferring title to the goods described in the Bill of Lading to that party.

 

Endorsement 

A legal signature usually placed on the reverse of a draft; signifies transfer of rights from the holder to another party.

 

Enrollment (U.S.)

The document issued by the U.S. Government to vessels under U.S. flag engaged solely in domestic or coastwise trade, as distinguished from the register, which is confined to vessels engaging in foreign trade.

 

Entry 

Customs documents required to clear an import shipment for entry into the general commerce of a country.

 

Equalization 

A monetary allowance to the customer for picking up or delivering at a point other than the destination shown on the bill of lading. This provision is covered by tariff publication.

 

Equipment Interchange Receipt (EIR) 

A document transferring a container from one  carrier to another, or to/from a terminal.

 

ETA 

Estimated Time of Arrival.

 

ETC

Estimated Time of Completion.

 

ETD

Estimated Time of Departure.

 

ETR

Estimated Time of Readiness.

 

ETS

Estimated Time of Sailing.

 

Ethylene 

A gas produced by many fruits and vegetables that accelerates the ripening and aging processes.

 

E.W.I.B. 

Eastern Weighing and Inspection Bureau.

 

Excepted Period

Period during which any time used to load or discharge does not count for the purpose of calculating demurrage or despatch, other than by prior agreement (see Unless used). Such periods must be expressly stated in the Charter-Party and may include weekends; public holidays and time used shifting from anchorage to berth. It should be noted that, once laytime has expired, time counts during excepted periods in the calculation of demurrage.

 

Exceptions Clause

Clause in a Charter-Party or Bill of Lading that exonerates the carrying ship from responsibility for damage to cargo from certain named causes such as an act of God or negligence of the master.

 

«Ex Dec» 

Contraction for “Shipper’s Export Declaration.”

 

Ex – «From» 

When used in pricing terms such as “Ex Factory” or “Ex Dock,” it signifies that the price quoted applies only at the point of origin indicated.

 

Exception 

Notations made when the cargo is received at the carrier’s terminal or loaded aboard a vessel. They show any irregularities in packaging or actual or suspected damage to the cargo. Exceptions are then noted on the bill of lading.

 

EXIM Bank 

Abbreviation for Export-Import Bank of the United States. An independent U.S. Government Agency which facilitates exports of U.S. goods by providing loan guarantees and insurance for repayment of bank-provided export credit.

 

Expiry Date 

Issued in connection with documents such as letters of credit, tariffs etc. to advise that stated provisions will expire at a certain time.

 

Expiry of Laytime

Moment when the time allowed in the Charter-Party for loading and / or discharging, as the case may be, has been used up. If loading or discharging, as the case may be, has been used up. If loading or discharging has not been completed, demurrage or damages for detention become payable.

 

Export 

Shipment of goods to a foreign country.

 

Export Declaration

A government document declaring designated goods to be shipped out of the country. To  be completed by the exporter and filed with the U.S. Government.

 

Export License 

A government document which permits the “Licensee” to engage in the export of designated goods to certain destinations.

 

Export Rate 

A rate published on traffic moving from an interior point to a port for transshipment to a foreign country.

Extension of a Charter

Prolonging of the period during which a ship is on time charter. An option to extend the charter may be incorporated into the Charter-Party, very often on the same terms but possibly at a different rate of hire.

Extension to the Canceling Date

Agreement by the charterer to a later date than that agreed in the Charter-Party by which a ship must tender notice of readiness to the charterer that she has arrived and is ready to load. If a ship is likely to be delayed in reaching the load port, the shipowner may ask the charterer to extend the canceling date. If the charterer agrees, the contract is amended accordingly. If not, the charterer may have the option to cancel the charter either before the canceling date by mutual consent or after the canceling date within a time specified in the Charter-Party. Alternatively, the shipowner may be obliged to present his ship at the load port, however late.

Extension to Suit Time

An extension by the carrier of the period within which cargo interests must bring a lawsuit for any claim which they may have under the contract of carriage. This extension may be granted at the request of cargo interests when the claim has not been fully quantified and provides the parties with further time to settle the claim out of court.

 

Extra-length Surcharge

Extra charge set by liner conferences on behalf of their members or applied by shipping lines on cargo exceeding a length specified in their tariff often 40 feet or 12 meters. This extra charge is normally expressed as an amount of money per each ton for each unit of length, for example each foot or part of a foot in excess of the specified length.

EXW – ex. Works

Sales term denoting that the seller is responsible for making the goods available at his works or factory. The buyer bears the cost of loading the goods onto the vehicle(s) and delivering them to the destination. The risk of loss and damage to the goods generally passes from the seller to the buyer at the time that they are made available.

F

 

FAC – Fast as Can

Term used in a contract of carriage, particularly in those of shipping lines, to denote that the shipper must supply the cargo as fast as the ship can load or that the receiver must take delivery as fast as the ship can discharge.

 

FACCOP

Fast as Can Custom of the Port – see FAC – Fast as

Can and COP – Custom of the Port

 

Factor 

A factor is an agent who will, at a discount (usually five to 8% of the gross), buy receivables.

 

FAF

Fuel Adjustment Factor – see bunker surcharge.

 

FAK 

Abbreviation for “Freight All Kinds.” Usually refers to full container loads of mixed shipments.

 

False Billing 

Misrepresenting freight or weight on shipping documents.

 

FAS – Free Alongside

Under this term the seller’s obligations are fulfilled when the goods have been placed alongside the ship on the quay or in lighters. This means that the buyer has to bear all costs and risks of toss or damage to the goods from that moment. It should be noted that unlike fob., the present term requires the buyer to clear the goods for export

 

F/C – Full and Complete Cargo

This expression characterizes a full cargo, in accordance with the custom of the port, which will either bring the vessel down to her maximum permissible draft or fill the vessel cubically as the case may be.

 

FCC – First Class Charterers

A commonly used, meaningless phrase, which should be avoided. Better to say, if you need to keep the name undisclosed: “local charterers or a similar phrase”

 

FCL – Full Container Load

Quantity of cargo, which fills a shipping container to capacity, either by weight or cubic measurement.

 

FCL Allowance

Deduction from the FCL freight provided by a shipping line or liner conference to a shipper who loads a minimum number of tons or cubic meters of cargo into a shipping container. There may be various allowances depending on the degree of utilization of the container. Also known as utilization allowance.

 

FCL/FCL

Term used to describe a container freight rate whereby the shipper is responsible for packing of the container and the shipper or receiver, as the case may be, is responsible for the unpacking.

 

FCL/ LCL

Term used to describe a freight rate whereby the shipper is responsible for packing of the container and the shipper or receiver, as the case may be, is responsible for the unpacking.

 

FD – Free Despatch

Provision in a voyage Charter-Party that despatch money is not payable when loading and/or discharging has been completed in less than the time allowed.

 

F.D.A. 

Food and Drug Administration.

 

Feeder Service

Cargo to/from regional ports are transferred to/from a central hub port for a long-haul ocean voyage.

 

Feeder Vessel 

A short-sea vessel which transfers cargo between a central   “hub” port and smaller “spoke” ports.

 

Ferticon

Voyage Charter-Party used for shipments of fertilizer, published by the Chamber of Shipping

 

Fertivoy

Voyage Charter-Party used for shipments of fertilizer from the United States of America and Canada. The full name of this Charter-Party is the North American fertilizer Charter-Party.

 

FEU – Forty Foot Equivalent Unit

Unit of measurement equivalent to one 40-foot container. Thus two 20-foot containers comprise an FEU. This measurement is used to quantify, for example, the container capacity of a ship, the number of containers carried on a particular voyage or over a period of time, or it may be the unit on which freight is based.

 

 

FHEX – Fridays and Holidays Excepted

Charter-Party term, which provides that Fridays and holidays do not count in the calculation of laytime. This term applies to those countries where Friday is the Sabbath, notably in the Middle East.

 

FI – Free In

Free of expense to the shipowner of cargo handling at the loading port.

 

Fifth Wheel 

The semi-circular steel coupling device mounted on a tractor which engages and locks with a chassis semi-trailer.

 

FILO /FILTD – Free in Liner Out / Free in Liner Terms Discharge

Qualification to a freight rate denoting that it is inclusive of the sea carriage and the cost of discharging. It excludes the cost of loading and, if appropriate to the type of cargo, stowing, dunnaging, lashing and securing or trimming, all of which are payable by the charterer or shipper. This type of freight rate may have a provision for laytime and demurrage at the port of loading since the carrier has no control over the loading.

 

FIO – Free In and Out

Term qualifying a freight rate which signifies that it excludes the cost of loading and discharging and if appropriate to the type of cargo, stowing, dunnaging, lashing and securing or trimming, all of which are paid by the charterer or shipper or receiver, as the case may be. This type of rate is typically found in voyage charter-parties and, since the shipowner has no control over loading and discharging, these generally have suitable clauses for laytime and demurrage to allow for delays at the loading and discharging ports.

 

FIOLS & D – Free In and Out, Lashed, Secured and Dunnaged

Qualification to a freight rate, which is equivalent to free in and out, but which avoids any ambiguity by specifying that the cost of lashing, securing and dunnaging is not for the account of the shipowner. It is normally payable by the charterer or the shipper.

 

FIOS – Free In and Out and Stowed

Qualification to a freight rate which is equivalent to free in and out but which avoids any ambiguity by specifying that the cost of stowage is not for the account of the shipowner. It is normally payable by the charterer or the shipper. It is used in carriage of general cargo.

 

FIOT – Free In and Out and Trimmed

Qualification to a freight rate which is equivalent to free in and out but which avoids any ambiguity by specifying that the cost of trimming is not for the account of the shipowner. It is normally payable by the charterer or the shipper. it is used in carriage of bulk cargo.

 

Firkin 

A capacity measurement equal to one-fourth of a barrel.

Firm Offer

An offer that is not conditional in any way and is binding on the party making it, provided that it is accepted in full and within any time limit specified in it.

 

First Class Ship

Ship to which the highest class has been given by a classification society in accordance with its rules concerning construction and maintenance.

 

Fix (to)

To conclude successfully negotiations resulting in the charter of a ship or cargo.

 

Fix Best Possible

Situation where the broker is given leeway to negotiate the Charter-Party if terms of original instructions cannot be met in the market. Very rarely happens. Usually, the broker is given a set of instructions by the principal, and if he cannot find a counter to meet those terms, he must return to his principal for a new set of instructions.

 

Fixed on Subjects

Said of a ship, when the terms and conditions of chartering her have been agreed except for a few, normally minor, details.

 

Fixed Operating Expense

The daily or monthly out-of-pocket costs of operating a vessel, which may include amortization and interest, but does not include fuel or any other variable costs.

 

Fixture

Successful conclusion of the negotiations between shipowner and charterer, generally through shipbrokers, resulting in the charter of a ship.

 

Fixed Costs 

Costs that do not vary with the level of activity. Some fixed costs continue even if no cargo is carried. Terminal leases, rent and property taxes are fixed costs.

 

Flat Car 

A rail car without a roof and walls.

 

Flat Rack/Flat Bed Container 

A container with no sides and frame members at the front and rear. Container can be loaded from the sides and top.

 

FLT – Full Liner Terms

Qualification to a freight rate, which signifies that it consists of the ocean carriage and the cost of cargo handling at the loading and discharging ports, according to the custom of those ports. This varies widely from country to country and, within countries, from port to port: in some ports, the freight excludes all cargo handling costs while in others, the costs of handling between the hold and the ship’s rail or quay is included in the freight.

 

FMC (F.M.C.)

Federal Maritime Commission. The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, Freight Forwarder Licensing, enforcing the conditions of the Shipping Act and approving conference or other carrier agreements.

 

FO – Free Out

Qualification to a freight rate denoting that the cost of discharging of the cargo from the ship’s hold is not included in the freight but is payable by the charterer or shipper or Bill of Lading holder, as the case may be. When qualifying a term of sale, it denotes that the purchase price of the goods does not include this cost that is borne by the buyer. Often, daily rates of discharging and demurrage are incorporated into such contracts.

 

FOB – Free on Board

Sales term denoting that the seller is responsible for delivering the goods to the port of loading agreed in the contract and for loading them on to the ship nominated by the buyer. The risk of loss or damage to the goods generally passes from the seller to the buyer when the goods pass ship’s rail at the port of loading.

 

FOB Charges

Are cargo handling charges levied on the shipper by the shipping line at the port of loading.

 

FOR 

Abbreviation for “Free on Rail.”

 

Force Majeure

Circumstance which is beyond the control of one of the parties to a contract and which may, according to the terms and conditions, relieve that party of liability for failing to execute the contract.

 

Forwarding Agent or Forwarder

Person or company who arranges the carriage of goods and the associated formalities on behalf of a shipper. The duties of a forwarding agent include booking space on a ship, providing all the necessary documentation and arranging Export  Customs clearance. Also referred to as freight forwarder.

 

Fore and Aft

The direction on a vessel parallel to the center line.

 

Foreign Sales Corporation 

Under U.S. tax law, a corporation created to obtain tax exemption on part of the earnings of U.S. products in foreign markets.  Must be set-up as a foreign corporation with an office outside the USA.

 

Foreign Trade Zone

A free port in a country divorced from Customs authority but under government control. Merchandise, except that which is prohibited, may be stored in the zone without being subject to import duty regulations.

 

Fork Lift 

A machine used to pick up and move goods loaded on pallets or skids.

 

Foul Bill of Lading 

A receipt for goods issued by a carrier with an indication that the goods were damaged when received. Compare Clean Bill of Lading.

 

Four-Way Pallet 

A pallet designed so that the forks of a fork lift truck can be inserted from all four sides. See Fork lift.

 

Forwarder Compensation

See Brokerage.

 

FOW – First Open Water

Time in Spring or early Summer when rivers, lakes or seas are unfrozen and sufficiently free of ice to be open to navigation. The term is normally used in the Great lakes or Baltic trades and usually refers to sometime in April.

 

F.P.A. 

See “Free of Particular Average.”

 

Free Alongside (FAS)

The seller must deliver the goods to a pier and place them within reach of the ship’s loading equipment. See Terms of Sale.

 

Free Astray 

An astray shipment (a lost shipment that is found) sent to its proper destination without additional charge.

 

Free In and Out (FIO)

Cost of loading and unloading a vessel is borne by the charterer/shipper.

 

Free of Particular Average (FPA) 

A marine insurance term meaning that the assurer will not allow payment for partial loss or damage to cargo shipments except in certain circumstances, such as stranding, sinking, collision or fire.

 

Free on Board (FOB – U.S. Domestic Use) 

Shipped under a rate that includes costs of delivery to and the loading onto a carrier at a specified point.

 

– FOB Freight Allowed: The same as FOB named inland carrier, except the buyer pays the transportation charge and the seller reduces the invoice by a like amount.

– FOB Freight Prepaid: The same as FOB named inland carrier, except the seller pays the freight charges of the inland carrier.

– FOB Named Point of Exportation: Seller is responsible for the cost of placing the goods at a named point of exportation. Some European buyers use this form when they actually mean FOB vessel.

– FOB Vessel: Seller is responsible for goods and preparation of export documentation until actually placed aboard the vessel.

 

Free on Board (Int’l Use)

See Terms of Sale.

 

Free Out (FO) 

Cost of unloading a vessel is borne by the charterer.

 

Free Port 

A restricted area at a seaport for the handling of duty-exempted import goods. Also called a Foreign Trade Zone.

 

Free Sale Certificate

The U.S. government does not issue certificates of free sale. However, the Food and Drug Administration, Silver Spring, Maryland, will issue, upon request, a letter of comment to the U.S. manufacturers whose products are subject to the Federal Food, Drug and Cosmetic Act or other acts administered by the agency. The letter can take the place of the certificate.

 

Free Time

Period between the time a ship is ready to load or discharge, having given notice of readiness, and the time that Iaytime commences in accordance with the Charter-Party, during which the charterer or receiver is not obliged to load or discharge. It is important to make provision in the Charter-Party for the effect of laytime should the charterer or receiver elect to load or discharge during this period.

 

Free Trade Zone 

A port designated by the government of a country for duty-free entry of any non-prohibited goods. Merchandise may be stored, displayed, used for manufacturing, etc., within the zone and re-exported without duties.

 

Freight 

Refers to either the cargo carried or the charges assessed for carriage of the cargo.

 

Freight Bill 

A document issued by the carrier based on the bill of lading and other information; used to account for a shipment operationally, statistically, and financially.  An Invoice.

 

Freight Broker

Is the broker who is always successful in contracting somewhat above the market level, but who will never risk the loss of business due to the details of a particular Charter-Party clause.

 

Freight Collect

Freight payable at destination, also referred to as freight forward.

 

Freight Conference

See conference.

 

Freight Forward

See freight collect.

 

Freight Forwarder 

A person whose business is to act as an agent on behalf of the shipper. A freight forwarder frequently makes the booking reservation.

 

Freight Payable at Destination

Method of paying the freight often used for shipments of bulk cargoes whose weight is established on discharge from the ship.

 

Freight Prepaid

Freight which is payable before the contract has been performed. Very often, the bills of lading are signed and exchanged with the shipper for his payment of freight.

 

Freight Quotation

Freight quoted by a shipping line or liner conference, which may be given as an indication only.

 

Freight Rate

Amount of money paid to a shipowner or shipping line for the carriage of each unit of cargo, such as a ton, a cubic meter or container load. Also referred to as rate of freight.

 

Freight Tariff

Schedule, published by a liner conference or shipping line, containing freight rates for a variety of commodities likely to he carried by the lines and whether these are payable on the weight of commodity or its cubic measurement. The tariff also contains details of charges for heavy lifts and long length cargoes, and terminal charges. Apart from matters of rating, the tariff of a liner conference states the geographical areas served, the names of the member lines and the conference’s general regulations.

Freight Ton

Unit of cargo on which a freight rate is based, generally one ton or one cubic meter whichever is greater.  Also called revenue ton.

 

Freighters 

See Ships.

 

FRT – Freight

Amount of money paid by a shipowner or shipping line for the carriage of cargo. Depending on the type of contract, the particular terms and, in some cases, the custom of the ports involved, the freight may include the cost of loading and/or discharging the cargo or may simply cover the ocean carriage.

G

 

GA – General Average

Intentional act or sacrifice that is carried out during voyage to preserve the venture from a real peril. The party who has suffered a loss as a result is reimbursed by all the other parties to the marine adventure, each paying a proportion of the amount of the loss according to the value of their interest.

 

Gateway 

Industry-related: A point at which freight moving from one territory to another is interchanged between transportation lines.

 

GATT 

Abbreviation for “General Agreement on Tariffs and Trade.” A multilateral treaty to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions. The World Trade Organization (WTO) superseded GATT in 1994.

 

GBL 

Abbreviation for “Government Bill of Lading.”

 

GDSM 

Abbreviation for “General Department Store Merchandise.” A classification of commodities that includes goods generally shipped by mass-merchandise companies. This commodity structure occurs only in service contracts.

 

Gencon

Widely used general purpose voyage Charter-Party published by BIMCO.

 

General Average Clause

Clause in a Bill of Lading or Charter-Party that stipulates in what country or place and by what rules, often the York-Antwerp Rules, general average is to be adjusted.

 

General Order (G.O.) 

When U.S. Customs orders shipments without entries to be kept in their custody in a bonded warehouse.

 

Generator Set (Gen Set) 

A portable generator which can be attached to a refrigerated container to power the refrigeration unit during transit.

 

Gless – Gearless Ship

Ship which is not equipped with her own crane(s) or derrick(s). When chartering or scheduling such a ship for a particular voyage, it is necessary to ensure that the loading and discharging ports have shore cranes capable of lifting up to the heaviest piece weight of the ship’s cargo.

 

Go-Down

In the Far East, a warehouse where goods are stored and delivered.

 

Gooseneck 

The front rails of the chassis that raise above the plane of the chassis and engage in the tunnel of a container leading to the connection to tractor.

 

Grain / Grain Capacity

Total cubic capacity of a ship’s holds available for the carriage of grain or any other free-flowing bulk cargo which is capable of filling the space between the ship’s frames It is expressed in cubic feet or cubic meters. See corresponding term bale I bale capacity.

 

GRI 

Abbreviation for “General Rate Increase.” Used to describe an across-the-board tariff rate increase implemented by conference members and applied to base rates.

 

Gross Terms

Type of voyage charter in which the shipowner pays for loading and discharging.

 

Gross Tonnage (GT) 

Applies to vessels, not to cargo, (0.2+0.02 log10V) where V is the volume in cubic meters of all enclosed spaces on the vessel.

 

Gross Weight

Entire weight of goods, packaging and freight car or container, ready for shipment. Generally, 80,000 pounds maximum container, cargo and tractor for highway transport.

 

Groupage 

A consolidation service, putting small shipments into containers for shipment.

 

Groupage Bill of Lading

Bill of Lading, issued by a carrier to a forwarding agent, sometimes known as a groupage agent or consolidator, which covers consignments from various shippers for the same destination which have been consolidated into one consignment by the forwarding agent. Each shipper receives a house Bill of Lading from the forwarding agent covering his consignment.

 

GT – Gross Tonnage

The total of all the enclosed spaces within a ship expressed in tons each of which is equivalent to one hundred cubic feet.   This term was previously referred to as GRT.

 

GVW 

Abbreviation for “Gross Vehicle Weight.” The combined total weight of a vehicle and its container, inclusive of prime mover.

H

 

HA – Hatchway

Opening in the deck of a ship though which cargo is loaded into, or discharged from, the hold.

 

Hague Rules

Rules governing the carriage of goods by sea and identifying the rights and responsibilities of carriers and owners of cargo. These rules were published in 1924 following an international convention and were subsequently given the force of law by many maritime nations.

 

Hague-Visbv Rules

Set of rules, amending the Hague Rules, published and subsequently given the force of law by many maritime nations.

 

Half Hire

Provision in a time Charter-Party that half of daily hire is payable under certain circumstances. For example, if a ship is lost at sea, it may be agreed That half hire is payable from the date the ship was last heard from until the calculated date of arrival at her destination.

 

Hamburg Rules

Rules governing the rights and responsibilities of carrier and cargo interests which may be incorporated into a contract for the carriage of goods by sea either by agreement of the parties or statutorily. The rules were adopted by the United Nations Convention on the Carriage of goods by sea in 1978.

 

Harbor Dues

Charge levied against a shipowner or ship operator by a port authority for the use of a harbor.

 

Harbor Master 

An officer who attends to the berthing, etc., of ships in a harbor.

 

Harmonized System of Codes (HS) 

An international goods classification system for describing cargo in international trade under a single commodity-coding scheme. Developed under the auspices of the Customs Cooperations Council (CCC), an international Customs organization in Brussels, this code is a hierarchically structured product nomenclature containing approximately 5,000 headings and subheadings. It is organized into 99 chapters arranged in 22 sections. Sections encompass an industry (e.g., Section XI, Textiles and Textile Articles); chapters encompass the various materials and products of the industry (e.g., Chapter 50, Silk; Chapter 55, Manmade Staple Fibers; Chapter 57, Carpets). The basic code contains four-digit headings and six-digit subheadings. Many countries add digits for Customs tariff and statistical purposes. In the United States, duty rates will be the eight-digit level; statistical suffixes will be at the ten-digit level. The Harmonized System (HS) is the current U.S. tariff schedule (TSUSA) for imports and is the basis for the ten-digit Schedule B export code.

 

Hatch

The opening in the deck of a vessel; gives access to the cargo hold.

 

HAZ MAT

An industry abbreviation for “Hazardous Material.”

 

Head Charter

Contract for the charter of a ship between her owner and a charterer. This term is used to distinguish between this Charter-Party and any contract, which the charterer may have with a third party to whom he sub-lets the ship.

 

Head Charterer

Charterer whose contract is direct with the shipowner in respect of a ship that is being chartered out and the sub-chartered, perhaps several times. The head charterer is thus distinguished from all the sub-charterers.

 

Heavy-Lift Charge 

A charge made for lifting articles too heavy to be lifted by a ship’s normal tackle.

 

High-Density Compression 

Compression of a flat or standard bale of cotton to approximately 32 pounds per cubic foot. Usually applies to cotton exported or shipped coastwise.

 

Hire or Hire Money

Money paid by a charterer to a shipowner for the hire of a ship taken on time charter. It may be expressed, for example, as an amount per day or per deadweight ton per month, hire is payable, by agreement, at regular intervals such as monthly or semimonthly, normally in advance. It is important that hire money is paid on time since otherwise the shipowner has the right to withdraw the ship from the service of the charterer.

 

Hire Statement

Written statement of the amount of hire money payable by a time charterer to a shipowner, showing the number of days that have elapsed since the commencement of the charter or since last statement. Deductions may be made for items disbursed by the charterer on behalf of the shipowner, such as cash advanced to the master, claims against the shipowner and off hire periods are also often deducted. The first and last statements detail the quantity of bunkers on board at the time of delivery and redelivery respectively of the ship, and corresponding adjustments made to the amounts of the remittances to take account of the purchase of bunkers on board on delivery by the charterer and the subsequent sale of bunkers on board on redelivery to the shipowner.

 

Hitchment

The marrying of two or more portions of one shipment that originate at different locations, moving under one bill of lading, from one shipper to one consignee. Authority for this service must be granted by tariff publication. See Bill of Lading.

 

Ho. – Hold

Space below the deck of a ship, used for carry cargo. If a ship has more than one hold, they are numbered consecutively from one upwards starting with the forward-most; this is done for the purposes of identifying the hold and locating cargo stowed in them.

 

Hopper Barge 

A barge which loads material dumped into it by a dredger and discharges the cargo through the bottom.

 

House Bill of Lading

Bill of Lading issued by a forwarding agent to a shipper covering a consignment, which the forwarding agent has grouped with consignments from other shippers to the same destination. The forwarding agent receives one groupage Bill of Lading from the carrier that covers all the consignments.

 

House-to-House

See Door-to-Door.

 

House-to-Pier

Cargo loaded into a container by the shipper under shipper’s supervision. When the cargo is exported, it is unloaded at the foreign pier destination.

 

Husbandry Agent

This is the agent appointed by the shipowners to attend only to those non-cargo matters – specifically those matters concerning vessel crew, repairs, supplies, and provisioning and classification society surveys.

 

Humping 

The process of connecting a moving rail car with a motionless rail car within a rail classification yard in order to make up a train. The cars move by gravity from an incline or “hump” onto the appropriate track.

 

HWONT

High water ordinary neap tides.

 

HWOST

High water ordinary spring tides.

I

 

I/A 

Abbreviation for “Independent Action.” The right of a conference member to publish a rate of tariff rule that departs from the Agreement’s common rate or rule.

 

ICC 

Abbreviation for (1) “Interstate Commerce Commission,”

(2) “International Chamber of Commerce.”

 

Ice Clause

Clause in a Bill of Lading or Charter-Party that sets out the options available to the panics to the contract of carriage in The event that navigation is prevented or temporarily delayed by severe ice conditions. The wording of the clause and the options vary according to the individual contract: a master may have the right to divert the ship to the nearest safe port to discharge cargo destined for an ice-bound port. Equally, a charterer may have the option of keeping a ship waiting for ice conditions to clear on payment of demurrage.

 

Identity of Carrier Clause

Clause in a Bill of Lading which stipulates who the carrier is, that is, the part) responsible for the care of the cargo under the terms of the contract of carriage. This is normally the shipowner since the party issuing the Bill of Lading may have chartered the ship and may not be responsible for the navigation of the ship nor for the handling of the cargo. There are some countries in which this clause may not be upheld.

 

IE 

Stands for “Immediate Exit.” In the U.S., Customs IE Form is used when goods are rought into the U.S. and are to be immediately re-exported without being transported within the U.S.

 

I.M.C.O. 

International Maritime Consultative Organization. A forum in which most major maritime nations participate and through which recommendations for the carriage of dangerous goods, bulk commodities, and maritime regulations become internationally acceptable.

 

I.M.D.G. Code

International Maritime Dangerous Goods Code. The regulations published by the IMO for transporting hazardous materials internationally.

 

Immediate Exportation 

An entry that allows foreign merchandise arriving at one port to be exported from the same port without the payment of duty.

 

Import 

To receive goods from a foreign country.

 

Import License

A document required and issued by some national governments authorizing the importation of goods.

 

Incoterms

Rules governing the interpretation of terms used in international trade, published by the International Chamber of Commerce. Against each of the terms of sale, such as FOB, CIF and DDP, are defined the duties of buyer and seller. These rules are incorporated into a contract of sale by agreement of the two parties.

 

Indemnity

Compensation offered by one party to another for the consequences of carrying out, or omitting to carry out, a certain act. An indemnity is usually given in writing but is unenforceable in a court of law if the act for which it is given is intended to defraud an innocent third party.

 

In-Transit Entry (I.T.) 

Allows foreign merchandise arriving at one port to be transported in bond to another port, where a superseding entry is filed.

 

In Bond 

Cargo moving under Customs control where duty has not yet been paid.

 

In Gate 

The transaction or interchange that occurs at the time a container is received by a rail terminal or water port from another carrier.

 

In Transit 

In transit, or in passage.

 

Incentive Rate

A lower-than-usual tariff rate assessed because a shipper offers a greater volume than specified in the tariff. The incentive rate is assessed for that portion exceeding the normal volume.

 

INCOTERMS 

The recognized abbreviation for the International Chamber of Commerce Terms of Sale. These terms were last amended, effective July 1, 1990.

 

Indemnity Bond 

An agreement to hold a carrier harmless with regard to a liability.

 

Independent Action 

Setting rate within a conference tariff that is different from the rate(s) for the same items established by other conference members.

 

Independent Line

Shipping line that operates on a route served by a liner conference but which is not a member of that conference, also referred to as a non-conference line or an outsider.

 

Independent Tariff 

Any body of rate tariffs that are not part of an agreement or conference system.

 

Inducement 

Minimum quantity of cargo or freight required by a shipping line to make it worthwhile to call at a particular port of loading or discharging. Such a cargo is called an inducement cargo or inducement rate.

 

Inherent Vice

The terms mean any existing defects, diseases, decay or the inherent nature of the commodity that will cause it to deteriorate with a lapse of time. Examples of goods that are subject to inherent vice are agricultural commodities, such as fruits and vegetables, and tobacco, which have the tendency to over-heat and to be subject to spontaneous combustion. Mild rust on metal created by atmospheric conditions is an inherent vice.

 

Inland Carrier 

A transportation line that hauls export or import traffic between ports and inland points.

 

Inspection Certificate 

A certificate issued by an independent agent or firm attesting to the quality and/or quantity of the merchandise being shipped. Such a certificate is usually required in a letter of credit for commodity shipments.

 

Installment Shipments 

Successive shipments are permitted under letters of credit. Usually they must take place within a given period of time.

 

Insulated Container

A container insulated on the walls, roof, floor, and doors, to reduce the effect of external temperatures on the cargo.

 

Insulated Container Tank 

The frame of a container constructed to hold one or more thermally insulated tanks for liquids.

 

Insurance with Average-clause 

This type of clause covers merchandise if the damage amounts to three percent or more of the insured value of the package or cargo. If the vessel burns, sinks, collides, or sinks, all losses are fully covered. In marine insurance, the word average describes partial damage or partial loss.

 

Insurance, All-risk 

This type of insurance offers the shipper the broadest coverage available, covering against all losses that may occur in transit.

 

Insurance, General-Average 

In water transportation, the deliberate sacrifice of cargo to make the vessel safe for the remaining cargo.  Those sharing in the spared cargo proportionately cover the loss.

 

Insurance, Particular Average 

A Marine insurance term to refer to partial loss on an individual shipment from one of the perils insured against, regardless of the balance of the cargo. Particularaverage insurance can usually be obtained, but the loss must be in excess of a certain percentage of the insured value of the shipment, usually three to five percent, before a claim will be allowed by the company.

 

Intaken Weight 

Actual weight of cargo loaded on board a ship.

 

Interchange Point 

A location where one carrier delivers freight to another carrier.

 

Interclub Agreement

Agreement between a number of major protection and indemnity clubs on the method of apportioning liability for loss and damage to cargo carried in ships chartered under a New York Produce Exchange Charter-Party.

 

Intercoastal 

Water service between two coasts; in the U.S., this usually refers to water service between the Atlantic and Pacific or Gulf Coasts.

 

Interline Freight

Freight moving from origin to destination over the Freight lines of two or more transportation carriers.

 

Interim Voyage

Voyage undertaken by a ship between the times she is chartered for a specific voyage and the time she performs it.

 

Intermediate Point 

A point located en route between two other points.

 

Intermodal 

Used to denote movements of cargo containers interchangeably between transport modes, i.e., motor, water, and air carriers, and where the equipment is compatible within the multiple systems.

 

Intermodal Tariff 

Tariff or freight rates of a shipping line or line conference covering inland as well as ocean legs.

 

Invoice 

An itemized list of goods shipped to a buyer, stating quantities, prices, shipping charges, etc.

 

Inward Foreign Manifest (IFM) 

A complete listing of all cargo entering the country of discharge. Required at all world ports and is the primary source of cargo control, against which duty is assessed by the receiving country.

 

IPI 

Abbreviation for “Inland Point Intermodal.” Refers to inland points (non-ports) that can be served by carriers on a through bill of lading.

 

Irrevocable Letter of Credit

Letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee and which cannot be revoked without joint agreement of both the buyer and the seller.

 

I.S.O.

International Standards Organization which deals in standards of all sorts, ranging from documentation to equipment packaging and labeling.

 

Issuing Bank

Bank that opens a straight or negotiable letter of credit and assumes the obligation to pay the bank or beneficiary if the documents presented are in accordance with the terms of the letter of credit.

 

“Issued” Charter

A form of Charter-Party for the establishment of which it might be said that BIMCO is responsible, is referred to as “issued” by BIMCO.

 

Issuing Carrier 

The carrier issuing transportation documents or publishing a tariff.

 

I.T. 

Abbreviation for “Immediate Transport.” The document (prepared by the carrier) allows shipment to proceed from the port of entry in the U.S. to Customs clearing at the destination. The shipment clears Customs at its final destination.   Also called an “In-Transit” Entry.

 

IWL Institute Warranty Limits

Geographical limits within which a ship may navigate without incurring any additional insurance premium.

J

 

Jacket

A wood or fiber cover placed around such containers as cans and bottles.

 

Jacob’s Ladder

A rope ladder suspended from the side of a vessel and used for boarding.

 

Jettison

Act of throwing cargo or equipment (jetsam) overboard when a ship is in danger.

 

Jettison Clause

Clause in a Bill of Lading or Charter-Party setting out the circumstances under which a master is entitled to jettison goods from a ship.

 

JIT

Abbreviation for “Just In Time.” In this method of inventory control, warehousing is minimal or nonexistent; the container is the movable warehouse and must arrive “just in time;” not too early nor too late.

 

Joint Rate

A rate applicable from a point on one transportation line to a point on another line, made by agreement and published in a single tariff by all transportation lines over which the rate applies.

 

Joint Survey

Inspection carried out by a surveyor on behalf of two parties, the cost generally being borne by both.

 

Jurisdiction Clause

Clause in a Bill of Lading or Charter-Party, which stipulates that any dispute between the parties arising from the contract, be resolved in a court of law, as opposed to arbitration. It also specifies which county has jurisdiction, that is, the authority to administer justice. Also known as litigation clause.

K

 

KT 

Kilo or metric ton. 1,000 Kilos or 2,204.6 pounds.

 

Kilogram 

1,000 grams or 2.2046 pounds.

 

King Pin 

A coupling pin centered on the front underside of a chassis; couples to the tractor.

 

Knocked Down (KD) 

Articles which are taken apart to reduce the cubic footage displaced or to make a better shipping unit and are to be re-assembled.

 

Knot 

One nautical mile (6,076 feet or 1852 meters) per hour. In the days of sail, speed was measured by tossing overboard a log which was secured by a line. Knots were tied into the line at intervals of approximately six feet. The number of knots measured was then compared against time required to travel the distance of 1000 knots in the line.

 

Known Loss 

A loss discovered before or at the time of delivery of a shipment.

L

 

L/C 

Abbreviation for “Letter of Credit.”

 

Laden 

Loaded aboard a vessel.

 

Lading 

Refers to the freight shipped; the contents of a shipment.

 

Landbridge 

Movement of cargo by water from one country through the port of another country, thence, using rail or truck, to an inland point in that country or to a third country. As example, a through movement of Asian cargo to Europe across North America.

 

Landed Cost

The total cost of a good to a buyer, including the cost of transportation.

 

Landing Certificate 

Certificate issued by consular officials of some importing countries at the point or place of export when the subject goods are exported under bond.

 

Landing Gear

A support fixed on the front part of a chassis (which is retractable); used to support the front end of a chassis when the tractor has been removed.

 

LASH 

A maritime industry abbreviation for “Lighter Aboard Ship.” A specially constructed vessel equipped with an overhead crane for lifting specially designed barges and stowing them into cellular slots in an athwartship position.

 

Laycan or L/C – Laydays Canceling

Period during which the shipowner must tender notice of readiness to the charterer that the ship has arrived at the port of loading and is ready to load, This period is expressed as two dates, for example laydays 25 March canceling 2 April or, when abbreviated as laycan, laycan 25 March/2 April. The charterer is not obliged to commence loading until the first of these dates if the ship arrives earlier and may have the option of canceling the charter if the ship arrives after the second of the dates, known as canceling date.

 

Laydays

Days allowed by the shipowner to the voyage charterer or Bill of Lading holder in which to load and / or discharge the cargo.  See also laytime.

 

Laytime

Time allowed by the shipowner to the voyage charterer or Bill of Lading holder in which to load and / or discharge the cargo. It is expressed as a number of days or hours or as a number or tons per day. There is normally a provision in the Charter-Party for the commencement of laytime, which is often at a certain hour after notice of readiness has been tendered by the master, a provision for periods when laytime does not count, for instance during bad weather, weekends or holidays or a provision for laytime being exceeded, when demurrage or damages for detention become payable, or not being fully used, when despatch may be payable.

 

Laytime Saved

Charter-Party term used to define one method by which despatch money is calculated, that is, by deducting laytime used from laytime allowed. If for example, a Charter-Party provides for 6 laydays for loading and the charterer uses 3 days, he is entitled to 3 days despatch money. Also referred to as working time saved.

 

Laytime Statement

Portion of a time sheet, which details the amount of laytime used by a voyage charterer.

 

LCL 

Abbreviation for “Less than Container Load.” The quantity of freight which is less than that required for the application of a container load rate. Loose Freight.

 

Letter of Credit (LC) 

A document, issued by a bank per instructions by a buyer of goods, authorizing the seller to draw a specified sum of money under specified terms, usually the receipt by the bank of certain documents within a given time. Some of the specific descriptions are:

 

– Back-to-Back: A new letter of credit issued to another beneficiary on the strength of a primary credit. The second L/C uses the first L/C as collateral for the bank. Used in a three-party transaction.

– Clean: A letter of credit that requires the beneficiary to present only a draft or a receipt for specified funds before receiving payment.

– Confirmed: An L/C guaranteed by both the issuing and advising banks of payment so long as seller’s documents are in order, and the L/C terms are met.  Only applied to irrevocable L/C’s. The confirming bank assumes the credit risk of the issuing bank.

– Deferred Payment: A letter of credit issued for the purchase and financing of merchandise, similar to acceptance-type letter of credit, except that it requires presentation of sight drafts payable on an installment basis.

– Irrevocable: An instrument that, once established, cannot be modified or cancelled without the agreement of all parties concerned.

– Non cumulative: A revolving letter of credit that prohibits the amount not used during the specific period from being available afterwards.

– Restricted: A condition within the letter of credit which restricts its negotiation to a named bank.

– Revocable: An instrument that can be modified or cancelled at any moment without notice to and agreement of the beneficiary, but customarily includes a clause in the credit to the effect that any draft negotiated by a bank prior to the receipt of a notice of revocation or amendment will be honored by the issuing bank. Rarely used since there is no protection for the seller.

– Revolving: An irrevocable letter issued for a specific amount; renews itself for the same amount over a given period.

– Straight: A letter of credit that contains a limited engagement clause which states that the issuing bank promises to pay the beneficiary upon presentation of the required documents at its counters or the counters of the named bank.

– Transferable: A letter of credit that allows the beneficiary to transfer in whole or in part to another beneficiary any amount which, in aggregate, of such transfers does not exceed the amount of the credit.  Used by middlemen.

– Unconfirmed: A letter of credit forwarded to the beneficiary by the advising bank without engagement on the part of the advising bank.

 

Less Than Truckload

Also known as LTL or LCL.

 

Letter of Indemnity

Written statement in which one party undertakes to compensate another for the costs and consequences of carrying out a certain act, for example, a shipper who has been delayed in sending an original Bill of Lading to the receiver may instruct the master of the ship or the shipowner to release the goods to a named third party without production of an original Bill of Lading. The master or owner, if they agree, may require a letter of indemnity from the shipper for the consequences of complying should it turn out that the named party is not entitled to take delivery of the goods. It should be noted that, as a rule, any such letter that seeks to indemnify against an act, which is intended to defraud an innocent third party, is unenforceable in a court of law.

 

Licenses 

– Some governments require certain commodities to be licensed prior to exportation or importation. Clauses attesting to compliance are often required on the B/L.

– Various types issued for export (general, validated) and import as mandated by government(s).

 

Lien 

A legal claim upon goods for the satisfaction of some debt or duty.

Lien Clause

Clause in a voyage Charter-Party which entitles the shipowner to exercise a lien on the cargo, that is, to retain control of the cargo until any freight, deadfreight or demurrage which is owing is paid. This provision is often incorporated into the cesser clause, which seeks to relive the charterer once the cargo has been shipped.

 

LIFO – Liner In Free Out

Qualification to freight rate denoting that it is inclusive of the sea carriage and the cost of loading. It excludes the cost of discharging, which is payable by the shipper or receiver, as the case may be. There may be a laytime and demurrage arrangement at the port of discharging since the carrier has no control over the discharging.

 

Lightening

A vessel discharges part of its cargo at anchor into a lighter to reduce the vessel’s draft so it can then get alongside a pier.

 

Lighter 

An open or covered barge towed by a tugboat and used mainly in harbors and inland waterways to carry cargo to/from alongside a vessel.

 

Lighterage 

Refers to carriage of goods by lighter and the charge assessed therefrom.

 

Liner 

A vessel sailing between specified ports on a regular basis.

 

Line-Haul 

Transportation from one city to another as differentiated from local switching service.

 

Liner Bill of Lading

Bill of Lading containing the terms and conditions of carriage of a shipping line.

 

Liner Waybill

Document, issued by a shipping line to a shipper, which serves as a receipt for the goods and evidence of the contract of carriage. In these respects it resembles a Bill of Lading but, unlike a Bill of Lading, it is not a document of title; it bears the name of the consignee who has only to identify himself in order to take delivery of the cargo. Because it is not negotiable, the liner waybill is not acceptable to the banks as collateral security; the purpose of the liner waybill is to avoid the delays to ships and cargoes that occur when bills of lading are late in arriving at the discharge port. The liner waybill is also referred to as a sea waybill or an ocean waybill or simply waybill.

 

Linertime

Deep sea time Charter-Party published by BIMCO, used when ships are chartered for liner operation.

 

List 

The amount in degrees that a vessel tilts from the vertical.

 

Liter 

1.06 liquid U.S. quarts or 33.9 fluid ounces.

 

Liquidated Damages

The penalty a seller must pay if the construction project does not meet contractual standards or deadlines.

 

Lloyds’ Registry

An organization maintained for the surveying and classing of ships so that insurance underwriters and others may know the quality and condition of the vessels offered for insurance or employment.

 

Load Ratio 

The ratio of loaded miles to empty miles.

 

Loading Broker

Company that represents a shipping line at the port of loading. Its duties are to advertise the line’s sailings, to obtain cargoes and co-ordinate their delivery to the ship and to sign bills of lading on behalf of the master.

 

Local Cargo 

Cargo delivered to/from the carrier where origin/destination of the cargo is in the local area.

 

Loose

Said of a consignment, which consists of single pieces not bundled together.

 

LONL – Lost or Not Lost

Term which may be used in contracts of carriage in which the freight is prepaid: often, freight is not returnable whether the ship and/or the cargo are lost or not once having commenced the voyage. Many charter-parties provide that brokerage commission is payable whether the ship is lost or not.

 

Long Ton 

2,240 pounds

 

Longshoreman 

Individual employed in a port to load and unload ships.

 

Loose 

Without packing.

 

Low-Boy 

A trailer or semi-trailer with no sides and with the floor of the unit close to the ground.

LS

Lump sum.

 

LT – Liner Terms

Qualification to a freight rate which signifies that it consists of the ocean carriage and the cost of cargo handling at the Loading and discharging ports according to the custom of those ports. This varies widely from country to country and, within countries, from port to port: in some ports, the freight excludes all cargo handling costs while in others the cost of handling between the hold and the ship’s rail or quay is included.

 

Lump Sum Charter

Voyage charter for which the freight is payable as a lump sum rather than per ton or other unit of cargo. The shipowner guarantees to lift a certain quantity of cargo but the charterer pays the same amount for freight irrespective of the quantity loaded.

 

LWONT 

Low Water Ordinary Neap Tides.

 

LWOST

Low Water Ordinary Spring Tides.

M

 

Malpractice 

A carrier giving a customer illegal preference to attract cargo. This can take the form of a money refund (rebate); using lower figures than actual for the assessment of freight charges (undercubing); misdeclaration of the commodity shipped to allow the assessment of a lower tariff rate; waiving published tariff charges for demurrage, CFS handling or equalization; providing specialized equipment to a shipper to the detriment of other shippers, etc.

 

Mandamus 

A writ issued by a court; requires that specific things be done.

 

Manifest

Document containing a full list of ship’s cargo, extracted from the bills of lading. A copy, known as the outward manifest, is lodged with the Customs authorities at the port of loading. A further copy, known as the inward manifest, is similarly lodged at the discharge port, with one copy going to the ship’s agent so that the unloading of the ship may be planned in advance.

 

Marine Insurance 

Broadly, insurance covering loss or damage of goods at sea. Marine insurance typically compensates the owner of merchandise for losses sustained from fire, shipwreck, etc., but excludes losses that can be recovered from the carrier.

 

Maritime 

Business pertaining to commerce or navigation transacted upon the sea or in seaports in such matters as the court of admiralty has jurisdiction.

 

Marking 

Letters, numbers, and other symbols placed on cargo packages to facilitate identification. Also known as marks.

 

Marlinespike 

A pointed metal spike, used to separate strands of rope in splicing.

 

Master Inbond 

U.S. Customs’ automated program under AMS. It allows for electronic reporting of inbound (foreign) cargoes in the U.S.

 

Mate’s Receipt

An archaic practice. An acknowledgement of cargo receipt signed by a mate of the vessel. The possessor of the mate’s receipt is entitled to the bill of lading, in exchange for that receipt.

 

Max
Maximum.

 

MBM 

1,000 board feet. One MBM equals 2,265 C.M.

 

MCFS 

Abbreviation for “Master Container Freight Station.” See CFS.

 

Measurement Cargo 

Freight on which transportation charges are calculated on the basis of volume measurement.

 

Measurement Ton 

40 cubic feet.

 

Mechanically Ventilated Container

A container fitted with a means of forced air ventilation.

 

Memorandum Bill of Lading

An in-house bill of lading. A duplicate copy.

 

Memorandum Freight Bill 

See Multiple Containerload Shipment.

 

Meter 

39.37 inches (approximately).

 

Metric Ton 

2,204.6 pounds or 1,000 kilograms.

 

MHWN

Mean High Water Neaps.

 

MHWS

Mean High Water Springs.

 

Microbridge 

A cargo movement in which the water carrier provides a through service between an inland point and the port of load/discharge. The carrier is responsible for cargo and costs from origin on to destination. Also known as IPI or Through Service.

 

Mile 

A unit equal to 5,280 feet  on land.  A nautical mile is 6076.115.

 

Min

Minimum.

 

Min/Max – MinimumIMaximum

When qualifying the contractual quantity in a voyage charter, this term signifies that the freight is payable on that precise quantity, no more and no less.

 

Mini Landbridge

An intermodal system for transporting containers by ocean and then by rail or motor to a port previously served as an allwater move (e.g., Hong Kong to New York over Seattle).

 

Minimum Bill of Lading 

A clause in a Bill of lading which specifies the least charge that the carrier will make for issuing a lading. The charge may be a definite sum or the current charge per ton for any specified quantity.

 

Minimum Charge

The lowest charge that can be assessed to transport a shipment.

 

Misdescription

Incorrect information concerning a ship given by the shipowner to a charterer or concerning cargo given by a charterer or shipper to a shipowner or shipping line. This may give raise to a claim for extra costs or damages or, in some cases, cancellation of the contract of carriage.

 

Mixed Container Load 

A containerload of different articles in a single consignment.

 

MLB 

Abbreviation for ”Mini Landbridge.”

 

MLWN

Mean low water neaps.

 

MLWS

Mean low water springs.

 

M.M.F.B. 

Middlewest Motor Freight Bureau.

 

Modified Atmosphere 

A blend of gases tailored to replace the normal atmosphere within a container.

 

MOL

More or Less.

 

MOLOO – More or Less in Owner’s Option 

Option allowed to a shipowner to carry up to a certain quantity, normally expressed as a percentage or number of tons, over or under a quantity specified in the voyage charter. This option may be sought if the shipowner is not certain what the ship’s cargo capacity will be, taking into consideration bunkers, stores and fresh water, or if he wants flexibility to adjust the ship’s trim.

 

Molchop – More or Less in Charterer’s Option

Option allowed to a voyage charterer to load up to a certain quantity, normally expressed as a percentage or a number of tons, over or under a quantity specified in the contract of carriage. This option may be sought if the charterer is not certain of the exact quantity that will be available at the time of loading.

 

More in dispute if on board to be delivered

Notation appearing on a Bill of Lading when the shipper is In disagreement with the ship as to the number of pieces or package tallied on board.

 

M/R – Mate’s Receipt

Receipt made out by the first officer, stating the quantity and condition of the goods loaded on board the ship. This document is given to the shipper and later exchanged for the Bill of Lading.

 

MS

Motor ship.

 

MT 

Abbreviation for “Metric Ton.”

 

Multimodal 

Synonymous for all practical purposes with “Intermodal.”

 

MultiTank Container 

A container frame fitted to accommodate two or more separate tanks for liquids.

 

MV

Motor vessel.

N

 

NAABSA – Not Always Afloat But Safe Aground

Provision in a Charter-Party that the charterer has the right to order the ship to a port where she may touch the bottom in safety.

 

Nautical Mile

Distance of one minute of longitude at the equator, approximately 6,076.115. The metric equivalent is 1852.

 

N.C.I.T.D.

National Committee on International Trade Documentation.

 

NEC 

Abbreviation for “Not Elsewhere Classified.”

 

Negligence Clause

Clause in a Bill of Lading or Charter-Party which seeks to relieve the shipowner or carrier of liability for losses caused by the negligence of his servants or agents.

 

Negotiable Instruments 

A document of title (such as a draft, promissory note, check, or bill of lading) transferable from one person to another in good faith for a consideration. Non-negotiable bills of lading are known as “straight consignment.” Negotiable bills are known as “order b/l’s.”

 

NES

Abbreviation for “Not Elsewhere Specified.”

 

Nested

Articles packed so that one rests partially or entirely within another, thereby reducing the cubic-foot displacement.

 

Net Tare Weight 

The weight of an empty cargo-carrying piece of equipment plus any fixtures permanently attached.

 

Net Tonnage (NT)

(0.2+0.02 log10(Vc)) Vc (4d/3D)2, for passenger ships the following formula is added: 1.25 (GT+10000)/10000 (N1+(N2/10)), where Vc is the volume of cargo holds, D is the distance between ship’s bottom and the uppermost deck, d is the draught N1 is the number of cabin passengers, and N2 is the number of deck passengers.) “Ton” is figured as an 100 cubic foot ton.

 

Net Weight

Weight of the goods alone without any immediate wrappings, e.g., the weight of the contents of a tin can without the weight of the can.

 

Neutral Body 

An organization established by the members of an ocean conference acts as a self-policing force with broad authority to investigate tariff violations, including authority to scrutinize all documents kept by the carriers and their personnel. Violations are reported to the membership and significant penalties are assessed.

 

New Jason Clause

Protective clause inserted into a Charter-Party or Bill of Lading which provides that the shipowner is entitled to recover in general average even when the loss is caused by negligent navigation. The need for such a clause arises from the decision of an American court that, while American law exempted a shipowner from liability for loss or damage to cargo resulting from negligent navigation, this did not entitle the shipowner to recover in general average for such a loss.

 

N.M.F.C. 

National Motor Freight Classification.

 

NOE – Not Otherwise Enumerated

Category in a freight tariff of a shipping line or liner conference which covers commodities not specifically described elsewhere in the tariff.

 

NOI 

Abbreviation for “Not Otherwise Indexed.”

 

NOIBN 

Abbreviation for “Not Otherwise Indexed By Name.”

 

Nomenclature of the Customs Cooperation Council 

The Customs tariff used by most countries worldwide. It was formerly known as the Brussels Tariff Nomenclature and is the basis of the commodity coding system known as the Harmonized System.

 

Nomination

Designation of a specific ship for a particular voyage by a shipowner or shipping line.

 

Non-Dumping Certificate 

Required by some countries for protection against the dumping of certain types of merchandise or products.

 

Non-Vessel Operating Common Carrier (NVOCC) 

A cargo consolidator in ocean trades who will buy space from a carrier and subsell it to smaller shippers. The NVOCC issues bills of lading, publishes tariffs and otherwise conducts itself as an ocean common carrier, except that it will not provide the actual ocean or intermodal service.

 

Non-Conference Line

See independent line.

 

Non-Negotiable Bill of Lading

Bill of Lading which is not a signed, original Bill of Lading and which is therefore not capable of being used to transfer title in the goods described in it.

 

Non-Reversible Laytime

Term used in a voyage Charter-Party to signify that the time allowed to the charterer for loading is to be treated separately from the time allowed for discharging for the purpose of calculating demurrage or despatch.

 

NOR – Notice of Readiness

Provision in a voyage charter that the shipowner or master must advise the charterer when the ship has arrived and is ready to load or discharge for laytime to start counting. The clause containing this provision often stipulates the particular hours and days when this notice may be tendered and how soon afterwards laytime commences.

 

NOS 

Abbreviation for “Not Otherwise Specified.”

 

Nose 

Front of a container or trailer – opposite the tail.

 

No-show

Cargo which has been booked but does not arrive in time to be loaded before the vessel sails.  See also “Windy Booking.”

 

Notice of Redelivery

Written notice given by the time charterer to the shipowner giving the date when the ship is to be returned to the shipowner at the end of the period of the charter. Charter-parties often stipulate that several such notices be given at agreed intervals as the date of redelivery approaches.

 

Notify Party

Party whose name and address appears in a Bill of Lading who is to be notified by the shipping company or its agent of the arrival of the goods at the discharge port. The notify party is often an agent for the receiver of the goods who arranges for their clearance and transport to the receiver’s premises. There is normally a box on the Bill of Lading into which the details of the notify party are inserted.

 

N.P.C.F.B. 

North Pacific Coast Freight Bureau.

 

NT – Net Tonnage

The total of all enclosed spaces within a ship available for cargo expressed in tons each of which is equivalent to one hundred cubic feet.  This term was previously referred to as NRT.

O

 

Ocean Bill of Lading (Ocean B/L) 

A contract for transportation between a shipper and a carrier. It also evidences receipt of the cargo by the carrier. A bill of lading shows ownership of the cargo and, if made negotiable, can be bought, sold or traded while the goods are in-transit.

 

Ocean Waybill

See liner waybill.

 

OCP 

See “Overland Common Points.”

 

ODS

Abbreviation for “Operating Differential Subsidy.”   An amount of money the U.S. government paid U.S. shipping companies that qualify for this subsidy.  The intent was to help offset the higher subsidy.  The intent was to help ofset the higher cost of operating a U.S.-flag vessel.  The ODS program is administered by the U.S. Maritime Administration and is being phased out.

 

O.E.C.D.

Organization of Economic Cooperation and Development, headquartered in Paris with membership consisting of the world’s developed nations.

 

Off Hire

Said of a ship on time charter for which hire money has temporarily ceased to be paid by the charterer, for example because of breakdown of the ship or her equipment.

 

Off Hire Survey

Inspection carried out at the time a ship is redelivered by a time charterer to a shipowner at the end of the period of the charter. The inspection is carried out to determine whether the ship is in the same condition, wear and tear excepted, as on delivery. The quantity of bunkers is ascertained for comparison with the amounts specified in the Charter-Party. By agreement, the ship is inspected by one surveyor for each of the two parties. Which party pays for the survey and whether the time taken counts for the purpose of calculating hire money are matters agreed in the Charter-Party.

 

On Board 

A notation on a bill of lading that cargo has been loaded on board a vessel. Used to satisfy the requirements of a letter of credit, in the absence of an express requirement to the contrary.

 

On Deck

A notation on a bill of lading that the cargo has been stowed on the open deck of the ship.

 

OO – In Owner’s Option

Term in a Charter-Party, which stipulates that the shipowner has a choice in specific circumstances. For example, in a voyage charter, the owner may have the option of specifying the exact quantity of cargo to be loaded.

 

Open

Said of a ship that is available as from a specified date at a particular place to steam to another port, if necessary, to load her next cargo, having discharged the last one.

 

Open Account 

A trade arrangement in which goods are shipped to a foreign buyer without guarantee of payment.

 

Open Insurance Policy 

A marine insurance policy that applies to all shipments made by an exporter over a period of time rather than to one shipment only.

 

Open Conference

Liner conference that does not require its member lines to vote on the admission of a new member.

 

Open Rate

Freight rate negotiated by a shipper or freight forwarder with a shipping line or liner conference for shipping in excess of a minimum agreed quantity of cargo on any one ship. It is lower than the published tariff rate and generally applies to the shipments of one commodity from one port of loading to one port of discharging.

 

Open Top Container 

A container fitted with a solid removable roof, or with a tarpaulin roof so the container can be loaded or unloaded from the top.

 

Operating Ratio 

A comparison of a carrier’s operating expense with its net sales.   The most general measure of operating efficiency.

 

O.P.I.C.

Overseas Private Investment Corporation.

 

Optimum Cube 

The highest level of cube utilization that can be achieved when loading cargo into a container.

 

Order-Notify (O/N) 

A bill of lading term to provide surrender of the original bill of lading before freight is released; usually associated with a shipment covered under a letter of credit.

 

Orders

Set of instructions given by the shipowner or ship operator to the master of a ship concerning the next voyage. These instructions include the names of the intended ports of loading, bunkering and discharging together with the names, addresses, telephone numbers and cable addresses of the ship’s agents at each port, details of the cargo, a schedule of bunkers needed for the voyage is not known. A ship is said to be awaiting orders and the master may be instructed to anchor where he is or to steam in the direction of the area where the shipowner expects to find a cargo.

 

ORFS 

Abbreviation for “Origin Rail Freight Station.” Same as CFS at origin except an ORFS is operated by the rail carrier participating in the shipment.

 

Origin 

Location where shipment begins its movement.

 

Original Bill of Lading (OBL)

A document which requires proper signatures for consummating carriage of contract. Must be marked as “original” by the issuing carrier.

 

OSB – One Safe Berth

See safe berth.

 

OSP – One Safe Port

See safe port.

 

OS&D 

Abbreviation for “Over, Short or Damaged” Usually discovered at cargo unloading.

 

OT

Overtime.

 

Ourturn Weight

Weight of cargo ascertained when it is discharged from a ship. Freight on bulk cargoes is sometimes payable on the basis of this weight.

 

Out Gate 

Transaction or interchange that occurs at the time a container leaves a rail or water terminal.

 

Outsider

See independent line.

 

Outturn Report

Written statement by a stevedoring company in which the condition of cargo discharged from a ship is noted along with any discrepancies in the quantity compared with the ship’s manifest. Also referred to as an over, short and damage report.

 

Overcharge

To charge more than the proper amount according to the published rates.

 

Overheight Cargo

Cargo more than eight feet high which thus cannot fit into a standard container.

 

Overland Common Point (OCP) 

A term stated on the bills of lading offering lower shipping rates to importers east of the Rockies, provided merchandise from the Far East comes in through the West Coast ports. OCP rates were established by U.S. West Coast steamship companies in conjunction with western railroads so that cargo originating or destined for the American Midwest and East would be competitive with all-water rates via the U.S. Atlantic and Gulf ports. Applies to eastern Canada.

 

Overage

Cargo discharged in excess of the quantity on the ship’s manifest.

 

Overlap

The period of time during which a charterer retains a vessel beyond the stated period of the time charter.

 

Overtonnaging

Situation where there are too many ships generally or in a particular trade, for the level of available cargoes.

 

Owner’s Agents

Ship’s agent nominated by, and paid by, the shipowner in accordance with the Charter-Party.

 

Owner Code (SCAC)

Standard Carrier Abbreviation Code identifying an individual common carrier. A three letter carrier code followed by a suffix identifies the carrier’s equipment. A suffix of “U” is a container and “C” is a chassis.

 

Owner’s Broker

Shipbroker who acts on behalf of a shipowner in the negotiations leading to the chartering out of the owner’s ship.

 

Owner’s Market

Strong market in favor of Ship Owner’s.

P

 

P&I 

Abbreviation for “Protection and Indemnity,” an insurance term.

 

Packing List

Itemized list of commodities with marks/numbers but no cost values indicated.

 

PADAG 

Abbreviation for “Please Authorize Delivery Against Guarantee.” A request from the consignee to the shipper to allow the carrier or agent to release cargo against a guarantee, either bank or personal. Made when the consignee is unable to produce original bills of lading.

 

Paired Ports 

A U.S. Customs program wherein at least two designated Customs ports will enter cargo that arrives at either port without the necessity of an in-bound document.

 

Pallet 

A platform with or without sides, on which a number of packages or pieces may be loaded to facilitate handling by a lift truck.

 

Paper Ramp 

A technical rail ramp, used for equalization of points not actually served.

 

Paper Rate 

A published rate that is never assessed because no freight moves under it.

 

Paramount Clause

Clause in a Bill of Lading or Charter-Party which stipulates that the contract of carriage is governed by the Hague Rules or the Hague-Visby Rules or the enactment of these miles in the country having jurisdiction over the contract.

 

Parcel Receipt 

An arrangement whereby a steamship company, under rules and regulations established in the freight tariff of a given trade, accepts small packages at rates below the minimum bill of lading, and issues a parcel receipt instead of a bill of lading.

 

Part Cargo

Goods which do not represent the entire cargo for a particular ship but whose quantity is sufficient to be carried on the charter terms.

 

Part Charter

The chartering of a ship to carry a quantity of goods, which represents only a part of the cargo.

 

Partial Shipments 

Under letters of credit, one or more shipments are allowed by the phrase “partial shipments permitted.”

 

Particular Average

See Insurance, Particular Average.

 

Payee 

A party named in an instrument as the beneficiary of the funds. Under letters of credit, the payee is either the drawer of the draft or a bank.

 

Payer 

A party responsible for the payment as evidenced by the given instrument. Under letters of credit, the payer is the party on whom the draft is drawn, usually the drawee bank.

 

Per Diem 

A charge, based on a fixed daily rate.

 

Performance Claim

Claim made by the time charterer against a shipowner when the ship has been unable to achieve the speed agreed in the Charter-Party or has consumed too much fuel or both.

 

Performance Clause

Clause in a time Charter-Party which stipulates that, should the ship be unable to achieve the agreed speed or should she consume too much fuel, the charterer is entitled to recover from the shipowner the cost of time lost and extra fuel, normally by means of a deduction from hire money.

 

Perils of the Sea 

Those causes of loss for which the carrier is not legally liable. The elemental risks of ocean transport.

 

PFT – Per Freight Ton

See freight ton.

 

Phytosanitary Inspection Certificate

A certificate issued by the U.S. Department of Agriculture to satisfy import regulations of foreign countries; indicates that a U.S. shipment has been inspected and found free from harmful pests and plant diseases.

 

Pickup 

The act of calling for freight by truck at the consignor’s shipping platform.

 

Pier 

The structure perpendicular to the shoreline to which a vessel is secured for the purpose of loading and unloading cargo.

Pier-to-House

A shipment loaded into a container at the pier or terminal, thence to the consignee’s facility.

 

Pier-to-Pier 

Containers loaded at port of loading and discharged at port of destination.

 

Piggy Packer

A mobile container-handling crane used to load/unload containers to/from railcars.

 

Piggyback 

A transportation arrangement in which truck trailers with their loads are moved by train to a destination. Also known as Rail Pigs.

 

PLTC – Port Liner Term Charges

Cargo handling charges levied on the shipper by the shipping line at the port of loading.

 

Place of Delivery 

Place where cargo leaves the care and custody of carrier.

 

Place of Receipt 

Location where cargo enters the care and custody of carrier.

 

Plimsoll Mark 

A series of horizontal lines, corresponding to the seasons of the year and fresh or saltwater, painted on the outside of a ship marking the level which must remain above the surface of the water for the vessel’s stability.

 

POD 

Abbreviation for:

– Port of Discharge.

– Port of Destination.

– Proof of Delivery. A document required from the carrier or driver for proper payment.

 

Point of Origin 

The place at which a shipment is received by a carrier from the shipper.

 

Point to Port Rate

Freight rate which includes all costs from inland place of the exporting country to the port of discharge in the importing country.

 

POL

Abbreviation for:

– Port of Loading.

– Petroleum, Oil, and Lubricants.

 

Pooling

Sharing of cargo or the profit or loss from freight by member lines of a liner conference pooling arrangements do not exist in all conferences.

 

Pomerene Act, Also known as (U.S.) Federal Bill of Lading Act of 1916. 

U.S. federal law enacting conditions by which a B/L may be issued. Penalties for issuing B/L’s containing false data include monetary fines and/or imprisonment.

 

Port

– Harbor with piers or docks.

– Left side of a ship when facing forward.

– Opening in a ship’s side for handling freight.

 

Port of Call

Port where a ship discharges or receives traffic.

 

Port of Entry 

Port where cargo is unloaded and enters a country.

 

Port of Exit 

Place where cargo is loaded and leaves a country.

 

Port to Point Rate

Freight rate which includes all costs from the port of loading in the exporting country to an inland place in the importing country.

 

Post Fixture

After the contract for the charter of a ship has been agreed. Said of work carried out by a shipowner, charterer or shipbroker, including payment of hire or freight, calculation of despatch or demurrage and the resolution of any disputes.

 

Pratique Certificate 

Lifts temporary quarantine of a vessel; granted pratique by Health Officer.

 

Preamble

First few lines of a Charter-Party in which the panics to the contract and the ship are identified.

 

Pre-cooling 

A process employed in the shipment of citrus fruits and other perishable commodities. The fruit is packed and placed in a cold room from which the heat is gradually extracted. The boxes of fruit are packed in containers that have been thoroughly cooled and transported through to destination without opening the doors.

 

Prepaid (Ppd.)

Freight charges paid by the consignor (shipper) prior to the release of the bills of lading by the carrier.

 

Private Form

Standard Charter-Party devised and used by a particular company. Oil companies when chartering tankers use the majority of these charter-parties.

 

Pro Forma 

A Latin term meaning “For the sake of form.”

 

Pro Forma Charter-Party

Document containing all the terms and conditions of a contract between a shipowner and a charterer but which is unsigned and therefore is not a contract itself.

 

Pro Forma Disbursements Account

Statement sent by a ship’s agent at a port to the shipowner in advance of the ship’s call at the port. It consists of the expenses that are likely to be incurred, including port charges, pilotage, towage and the agent’s commission. This account is used to help the shipowner estimate the viability of a voyage and serves as a request by the agent for sufficient funds to be made available prior to the ship’s arrival.

 

Pro Forma Invoice 

An invoice provided by a supplier prior to the shipment of merchandise, informing the buyer of the kinds and quantities of goods to be sent, their value, and specifications (weight, size, etc.).

 

Pro Rata 

A Latin term meaning “In proportion.”

 

Project Rate 

Single tariff item, established to move multiple commodities needed for a specified project, usually construction.

 

Protecting Agent

Agent appointed by the owners or charterers to protect their interest and to supervise the work carried out by the ship’s agent when, under the Charter-Party, the vessel is consigned to another’s agent. If the Charter-Party calls for owner’s agents, the charterers may appoint a protecting or supervisory agent to protect their interest at the port of loading and / or discharge. The same applies to shipowners, time charterers and voyage charterers.

 

Protective Clauses

Clauses in a Charter-Party which provide contingencies for unforeseen situations, such as ice, strikes, general average or collision. Also known as protecting clause.

 

Public Service Commission 

A name usually given to a State body having control or regulation of public utilities.

 

Publishing Agent 

Person authorized by transportation lines to publish tariffs or rates, rules, and regulations for their account.

 

Pulp Temperature 

Procedure where carrier tests the temperature of the internal flesh of refrigerated commodities to assure that the temperature at time of shipment conforms to prescribed temperature ranges.

 

Pup 

A short semi-trailer used jointly with a dolly and another semi-trailer to create a twin trailer.

 

Purposes

Time allowed in a voyage Charter-Party for loading and discharging combined, expressed as a number of days or hours.  Also referred to as all purposes.

Q

 

Quarantine

A restraint placed on an operation to protect the public against a health hazard. A ship may be quarantined so that it cannot leave a protected point. During the quarantine period, the Q flag is hoisted.

 

Quoin

A wedge-shaped piece of timber used to secure barrels against movement.

 

Quota

The quantity of goods that may be imported without restriction during a set period of time.

 

Quotation

An offer to sell goods at a stated price and under stated terms.

 

Quay

A structure attached toland to which a vessel is moored.  See also Pier and Dock.

R 

 

Rag Top

A slang term for an open-top trailer or container with a tarpaulin cover.

 

Rail Division 

The amount of money an ocean carrier pays to the railroad for overland carriage.

 

Rail Grounding

The time that the container was discharged (grounded) from the train.

 

Ramp

Railroad terminal where containers are received or delivered and trains loaded or discharged. Originally, trailers moved onto the rearmost flatcar via a ramp and driven into position in a technique known as “circus loading.” Most modern rail facilities use lifting equipment to position containers onto the flatcars.

 

Ramp-to-Door 

A movement where the load initiates at an origin rail ramp and terminates at a consignee’s door.

 

Ramp-to-Ramp 

A movement of equipment from an origin rail ramp to a destination rail ramp only.

 

Rate Basis 

A formula of the specific factors or elements that control the making of a rate. A rate can be based on any number of factors (i.e., weight, measure, equipment type, package, box, etc.).

 

Rate of Demurrage

Amount payable by a voyage charterer to a shipowner for each day used to load and / or discharge cargo in excess of the time allowed in the Charter-Party.

 

Rate of Discharging / Loading

Number of tons of cargo discharged /loaded each day from / into a ship. Such a provision is often included in the terms of a voyage charter.

 

Rate of Freight

See freight rate.

 

Reasonableness

Under ICC and common law, the requirement that a rate not be higher than is necessary to reimburse the carrier for the actual cost of transporting the traffic and allow a fair profit.

 

Rebate 

An illegal form of discounting or refunding that has the net effect of lowering the tariff price. See also Malpractice.

 

Received for Shipment Bill of Lading

Bill of Lading evidencing that the goods have been received into the care of the carrier, but not yet loaded on board. It also serves as evidence of the contract of carriage and is a document of title, although because the goods have not necessarily been loaded on to the ship, this type of Bill of Lading is not always acceptable to banks as collateral security.

 

Receiver

Party who receives the cargo at the place of destination in the contract of carriage.

 

“Recommended” Charter

When there has been no proper groups of charterers with whom to negotiate a particular charter, for instance, “Gencon” Charter it is issued as a “recommended” charter. The same is the case if the parties with which a charter has been negotiated will not be able to bind their members to use the charter as a clean document. This is the position, for instance, for the “Norgrain” Charter and the ‘Nuvoy” Charter. Whereas BIMCO naturally wishes the printed text of a “recommended” charter to be followed by charterers and shipowners, there were no compulsion in this respect.

 

Reconsignment

Changing the consignee or destination on a bill of lading while shipment is still in transit. Diversion has substantially the same meaning.

 

Recourse

A right claim against the guarantors of a loan or draft or bill of exchange.

 

Red Label 

A label required on shipments of flammable articles.

 

Redly – Redelivery

Return of a ship by the time charter to the shipowner at the end of the period of the charter.

 

Redelivery Certificate

Document signed by or on behalf of the shipowner and the charterer, certifying the time, date and place of redelivery of the ship, that is, the returning of the ship by the time charterer to the shipowner at the end of the period of charter. The certificate also states the quantity of bunkers onboard at the time redelivery.

 

Reefer – Refrigerated container.

 

Related Points

A group of points to which rates are made the same as or in relation to rates to other points in group.

 

Release a Bill of Lading (to)

To provide the shipper with an original Bill of Lading, often in exchange for the freight.

 

RFQ – Request for quotation.

 

Relay 

To transfer containers from one ship to another when both vessels are controlled by the same network (carrier) manager.

 

Remittance – Funds sent by one person to another as payment.

 

Restricted Articles – Articles handled only under certain conditions.

 

Revenue Ton (RT)

A ton on which the shipment is freighted. If cargo is rated as weight or measure (W/M), whichever produces the highest revenue will be considered the revenue ton.  Weights are based on metric tons and measures are based on cubic meters.  RT=1 MT or 1 CBM.

 

Reverse IPI 

An inland point provided by an allwater carrier’s through bill of lading in the U.S. by first discharging the container in an East Coast port.

 

Reversible Laytime

Term used in a voyage Charter-Party to signify that the time allowed for loading may at the charterers option, be added to the time allowed for discharging for the purpose of calculating demurrage or despatch.

 

“Ro/Ro”

A shortening of the term, “Roll On/Roll Off.” A method of ocean cargo service using a vessel with ramps which allows wheeled vehicles to be loaded and discharged without cranes.

 

Roll 

To re-book cargo to a later vessel.

 

Rolling 

The side-to-side (athwartship) motion of a vessel.

 

Round Voyage

Voyage involving two legs the second of which brings the ship back to the geographical area where the first leg commenced.

 

Route 

The manner in which a shipment moves; i.e., the carriers handling it and the points at which the carriers interchange.

 

RT – Revenue Ton

Unit of cargo on which a freight rate is based, generally one ton or one cubic meter whichever is greater.  Also called freight ton.

 

Running Days

Consecutive days of 24 hours including weekends and holidays.

 

Running Gear

Complementary equipment for terminal and overtheroad handling containers.

 

RVNX 

Abbreviation for “Released Value Not Exceeding.” Usually used to limit the value of goods transported. The limitation refers to carrier liability when paying a claim for lost or damaged goods.

S

 

Sanction

An embargo imposed by a Government against another country.

 

SABS

South African Bureau of Standards

 

Saleform

Memorandum of agreement giving details of the purchase of a ship, devised by the Norwegian Shipbroker’s Association.

 

SB – Safe Berth

Term in a charter party which places the responsibility onto the cargo interests to order the chartered ship to a berth which is physically safe for her while she is there for the purpose of loading or discharging.

 

S/D 

Abbreviation for:

– Sight draft.

– Sea damage.

 

SCAC Code 

See Owner Code.

 

Schedule B

The Statistical Classification of Domestic and Foreign Commodities Exported from the United States.

 

Sea-Bee Vessels 

Ocean vessels constructed with heavy-duty submersible hydraulic lift or elevator system at the stern of the vessel. The Sea-Bee system facilitates forward transfer and positioning of barges. Sea-Bee barges are larger than LASH barges. The Sea-Bee system is no longer used.

 

Sea Waybill

Document indicating the goods were loaded onboard when a document of title (b/L) is not needed.  Typically used when a company is shipping goods to itself.

 

Seaworthiness

Fitness of a ship for a particular voyage with a particular cargo. The main requirements for seaworthiness are that a ship has sufficient crew, stores and fuel, the machinery and equipment are in good repair and that the ship is fit to receive an carry the cargo.

 

SED 

U.S. Commerce Department document, “Shipper’s Export Declaration.”

 

Service

A string of vessels which makes a particular voyage and serves a particular market.

 

Service Agreement or Service Contract

Agreement between a shipper and a liner conference in which the shipper undertakes to ship some or all, as the case may be, of his cargo on conference line ships for a specific period of time in return for an agreed rate of freight and level of service. Some contracts require the shipper to achieve a minimum quantity of cargo over the agreed period.

 

SHEX – Sundays and Holidays Excepted

Charter-Party term which provides that Sundays and public holidays do not count in the calculation of laytime. See also even if used, and unless used.

 

SHINC – Sundays and Holidays Included

Charter-Party term, which provides that Sundays and public holidays count in the calculation of laytime, whether or not used for loading or discharging, as the case may be.

 

Ship Chandler 

An individual or company selling equipment and supplies for ships.

 

Ship Demurrage 

A charge for delaying a steamer beyond a stipulated period.

 

Ship’s Bells

Measure time onboard ship. One bell sounds for each half hour. One bell means 12:30, two bells mean 1:00, three bells mean 1:30, and so on until 4:00 (eight bells). At 4:30 the cycle begins again with one bell.

 

Shipbroker

Person having one or several occupations: chartering agent or owner’s broker, negotiating the terms for the charter of a ship on behalf of a charterer or shipowner respectively; sale and purchase broker, negotiating on behalf of a buyer or seller of a ship; ship’s agent, attending to the requirements of a ship, her master and crew when in port on behalf of the shipowner, loading broker, whose business is to attract cargoes to the ships of his principal.

 

Shipped Bill of Lading or Shipped on Board Bill of Lading

Bill of Lading issued when the goods have been loaded on board the ship. This type of Bill of Lading, which must contain a reference to the goods having shipped on board, is often required by banks who advance money using the Bill of Lading as collateral security and who wish to be satisfied that the goods are on board the ship.

 

Shipper

Person or company who enters into a contract with a liner conference, shipping line or shipowner for the carriage of goods.

 

Ship’s Agent 

Person who looks after the interests of a ship while she is in port. His duties include the arranging of pilotage, towage and a berth for the ship, the signing of bills of lading and the collection of freight. The agent is paid a fee, agreed in advance with the shipowner.

 

Ship’s Manifest 

A statement listing the particulars of all shipments loaded for a specified voyage.

 

Ship’s Tackle 

All rigging, cranes, etc., utilized on a ship to load or unload cargo.

 

Shipment 

The tender of one lot of cargo at one time from one shipper to one consignee on one bill of lading.

 

Shipper 

The person or company who is usually the supplier or owner of commodities shipped. Also called Consignor.

 

Shippers Association

A non-profit entity that represents the interests of a number of shippers. The main focus of shippers associations is to pool the cargo volumes of members to leverage the most favorable service contract rate levels.

 

Shipper’s Export Declaration (SED,”Ex Dec”)

A joint Bureau of the Census’ International Trade Administration form used for compiling U.S. exports. It is completed by a shipper and shows the value, weight, destination, etc., of export shipments as well as Schedule B commodity code.

 

Shipper’s Instructions 

Shipper’s communication(s) to its agent and/or directly to the international water-carrier. Instructions may be varied, e.g., specific details/clauses to be printed on the B/L, directions for cargo pickup and delivery.

 

Shipper’s Letter of Instructions for issuing an Air Waybill 

The document required by the carrier or freight forwarders to obtain (besides the data needed) authorization to issue and sign the air waybill in the name of the shipper.

 

Shipper’s Load & Count (SL&C)

Shipments loaded and sealed by shippers and not checked or verified by the carriers.

 

Shipping Act of 1916

The act of the U.S. Congress (1916) that created the U.S. Shipping Board to develop water transportation, operate the merchant ships owned by the government, and regulate the water carriers engaged in commerce under the flag of the United States. As of June 18, 1984, applies only to domestic offshore ocean transport.

Shipping Act of 1984 

Effective June 18, 1984, describes the law covering water transportation in the U.S. foreign trade.

 

Shipping Act of 1998

Amends the Act of 1984 to provide for confidential service contracts and other items.

 

Shipping Order 

Shipper’s instructions to carrier for forwarding goods; usually the triplicate copy of the bill of lading.

 

Ships 

– Bulk Carriers: All vessels designed to carry bulk cargo such as grain, fertilizers, ore, and oil.

– Combination Passenger and Cargo Ships: Ships with a capacity for 13 or more passengers.

– Freighters: Breakbulk vessels both refrigerated and unrefrigerated, containerships, partial containerships, rollon/rolloff vessels, and barge carriers.

– Barge Carriers: Ships designed to carry barges; some are fitted to act as full containerships and can carry a varying number of barges and containers at the same time. At present this class includes two types of vessels LASH and Sea-Bee.

– General Cargo Carriers: Breakbulk freighters, car carriers, cattle carriers, pallet carriers and timber carriers.

– Full Containerships: Ships equipped with permanent container cells, with little or no space for other types of cargo.

– Partial Containerships: Multipurpose containerships where one or more but not all compartments are fitted with permanent container cells. Remaining compartments are used for other types of cargo.

– Roll-on/Roll-off vessels: Ships specially designed to carry wheeled containers or trailers using interior ramps.

– Tankers: Ships fitted with tanks to carry liquid cargo such as: crude petroleum and petroleum products; chemicals, Liquefied gasses(LNG and LPG), wine, molasses, and similar product tankers.

 

Shore 

A prop or support placed against or beneath anything to prevent sinking or sagging.

 

Short Ton (ST) 

2,000 pounds.

 

Short Form Bill of Lading

Bill of Lading which does not have printed on it the full terms and conditions of the contract of carriage but instead contains a reference to the carrier’s conditions, normally stating that a copy is available on request.

 

Short Shipment

Part of consignment which has not been shipped in a specific ship, normally because there was insufficient space in the ship or because the goods arrived at the port of loading after the ship has completed loading or has sailed.

 

Shrink Wrap 

Polyethylene or similar substance heat-treated and shrunk into an envelope around several units, thereby securing them as a single pack for presentation or to secure units on a pallet.

 

Side Loader 

A lift truck fitted with lifting attachments operating to one side for handling containers.

 

Side-Door Container

A container fitted with a rear door and a minimum of one side door.

 

Sight Draft 

A draft payable upon presentation to the drawee.

 

Sim Sub. – Similar Substitute

Ship offered by a shipowner to a charterer as a replacement for the one originally chartered which is similar in respect of the principal characteristics, which include deadweight, capacities and hold and hatch sizes.

 

Sister Ship

Ship with the same specification as another. This is sometimes offered to a charterer by a shipowner who has two or more identical ships but is not certain at the time of negotiating the charter that will be in the most suitable geographical position to perform the voyage.

 

Skids 

Battens, or a series of parallel runners, fitted beneath boxes or packages to raise them clear of the floor to permit easy access of forklift blades or other handling equipment.

 

SL/W

Shippers load and count.  All three clauses are used as needed on the bill of lading to exclude the carrier from liability when the cargo is loaded by the shipper.

 

Sleepers 

Loaded containers moving within the railroad system that are not clearly identified on any internally generated reports.

Sling

A wire or rope contrivance placed around cargo and used to load or discharge it to/from a vessel.

 

Slip

A vessel’s berth between two piers.

 

S & P Sale and Purchase Broker

Person who negotiates the terms for the sale of a ship on behalf of the buyer or seller.

 

SP – Safe Port

Term in a Charter-Party which places the responsibility on to the cargo interests to order the chartered ship to a port which is physically and politically safe for her to reach, remain and leave, taking into consideration the cargo to be loaded or discharged.

 

SPA 

Abbreviation for “Subject to Particular Average.” See also Particular Average.

 

Spine Car 

An articulated five-platform railcar. Used where height and weight restrictions limit the use of stack cars. It holds five 40-foot containers or combinations of 40- and 20-foot containers.

 

Spotting 

Placing a container where required to be loaded or unloaded.

 

Spreader 

A piece of equipment designed to lift containers by their corner castings.

 

SSHEX – Saturdays, Sundays and Holidays Excepted

Charter-Party term which provides that Saturdays, Sundays and public holidays do not count in the calculation of laytime. See also even if used, and unless used.

 

SSHINC – Saturdays, Sundays and Holidays Included 

Charter-Party term which provides that Sundays and public holidays count in the calculation of laytime, whether or not used for loading or discharging, as the case may be.

 

Stability 

The force that holds a vessel upright or returns it to upright if keeled over. Weight in the lower hold increases stability. A vessel is stiff if it has high stability, tender if it has low stability.

 

Stack Car 

An articulated five-platform rail car that allows containers to be double stacked. A typical stack car holds ten 40-foot equivalent units (FEU’s).

 

Stacktrain

A rail service whereby rail cars carry containers stacked two high on specially operated unit trains. Each train includes up to 35 articulated multi-platform cars. Each car is comprised of 5 well-type platforms upon which containers can be stacked. No chassis accompany containers.

 

Standard Industrial Classification (SIC) 

A standard numerical code used by the U.S. Government to classify products and services.

 

Standard International Trade Classification (SITC)

A standard numeric code developed by the United Nations to classify commodities used in international trade, based on a hierarchy.

 

Starboard 

The right side of a ship when facing the bow.

 

Statement of Facts

Statement, prepared by the ship’s agent at the loading and discharging ports, which shows the date and times of arrival of the ship and the commencement and completion of loading and discharging. It details the quantity of cargo loaded or discharged each day, the hours worked and the hours stopped with the reasons for the stoppages, such as bad weather, a strike or breakdown of equipment.

 

Statute Of Limitation 

A law limiting the time in which claims or suits may be instituted.

 

Stem

Availability of a cargo on the date or dates on which a ship is offering to load.

 

STCC 

Abbreviation for “Standard Transportation Commodity Code.”

 

Steamship Conference 

A group of vessel operators joined together for the purpose of establishing freight rates.

 

Steamship Guarantee 

An indemnity issued to the carrier by a bank; protects the carrier against any possible losses or damages arising from release of the merchandise to the receiving party. This instrument is usually issued when the bill of lading is lost or is not available.

 

Stern 

The end of a vessel. Opposite of bow.

 

Stevedore 

Individual or firm that employs longshoremen and who contracts to load or unload the ship.

Store-Door Pick-up Delivery 

A complete package of pick up or delivery services performed by a carrier from origin to final consumption point.

 

Stowage 

A marine term referring to loading freight into ships’ holds.

 

STC

Said to contain.

 

Straddle Carrier 

Mobile truck equipment with the capacity for lifting a container within its own framework.

 

Straight Bill of Lading 

A non-negotiable bill of lading which states a specific identity to whom the goods should be delivered. See Bill of Lading.

 

Strike Clause

Clause in a Bill of Lading or Charter-Party that sets out the options available to the parties to the contract of carriage in the event that a strike prevents or interrupts the loading or discharging of the cargo. The wording of the clause and the options vary according to the individual contract. In the case of a charter, the clause may contain a provision for the effect of a strike on laytime.

 

Stripping 

Removing cargo from a container (devanning).

 

STW – Said to weigh.

 

Sub-Charterer

Person or company who charters a ship for a party, who is not the owner but who, in turn, has chartered the ship.

 

Sub-Freight

Freight payable by the sub-charterer, normally to the charterer.

 

Sub. Details – Subject Details

Term qualifying an offer or counter-offer for the charter of a ship which demotes that only minor details remain to be agreed. It is widely accepted that the conclusion of a contract is conditional on these details being agreed although an American court has ruled that the acceptance of such offer or counter-offer is sufficient to create a contract, leaving the details to be agreed subsequently.

 

 

Sub, Free – Subject Free

Term used in an offer made by a shipowner to signify that the acceptance of that offer will only result in a contract if one has not been concluded in the meantime with a third party. Also referred to as subject open or subject unfixed.

 

Sub, Open – Subject Open

See subject free.

 

Sub, Unfixed – Subject Unfixed

See subject free.

 

Subject Stem

Subject to the availability of the cargo on the dates on which a ship is offering to load.

 

Sub-Let

The charter of a ship to one party by another party who is not the owner but who, in turn, has the charter of the ship. Also referred to as a sub-charter.

 

Substitute

Replacement for a ship for a particular voyage.

 

Substitution

The replacement of a ship with another ship. A shipowner often has an option in a voyage to employ a ship other than the one named in the Charter-Party since he may not know which of his ships will be capable of performing the voyage at the time the contract is concluded, particularly if this is done well in advance of loading.

 

Stuffing 

Putting cargo into a container.

 

Subrogate 

To put in place of another; i.e., when an insurance company pays a claim it is placed in the same position as the payee with regard to any rights against others.

 

Surface Transportation Board (STB)

The U.S. federal body charged with enforcing acts of the U.S. Congress that affect common carriers in interstate commerce. STB replaced the Interstate Commerce Commission (ICC) in 1997.

 

Sufferance Wharf 

A wharf licensed and attended by Customs authorities.

 

Supply Chain 

A logistical management system which integrates the sequence of activities from delivery of raw materials to the manufacturer through to delivery of the finished product to the customer into measurable components. “Just in Time” is a typical value-added example of supply chain management.

 

Surcharge 

An extra or additional charge.

 

Surtax 

An additional extra tax.

 

SWL –  Safe Working Load

Maximum load which can safely be borne by a lifting or hauling appliance, such as crane or winch. The safe working load is generally marked clearly on the equipment and must not be exceeded.

T

 

T.&E. 

Abbreviation for “Transportation and Exportation.” Customs form used to control cargo movement from port of entry to port of exit, meaning that the cargo is moving from one country, through the United States, to another country.

 

Tail 

Rear of a container or trailer-opposite the front or nose.

 

Tare Weight

In railcar or container shipments, the weight of the empty railcar or empty container.

 

TA Round

Transatlantic round voyage.

 

Tariff

Schedule of charges, such as the freight tariff of a shipping line or conference, in which are published freight rates, generally for a wide variety of commodities.

 

TBA

To be advised.

 

TBN – To Be Nominated

Said in respect of a voyage for which a specific ship has yet to be designated by the shipowner or shipping line.

 

Telex 

Used for sending messages to outside companies. Messages are transmitted via Western Union, ITT and RCA.  Being replaced by fax and internet.

 

Temperature Recorder 

A device to record temperature in a container while cargo is en route.

 

Tender 

The offer of goods for transportation or the offer to place cars or containers for loading or unloading.

 

Tender Notice of Readiness (to)

As master of a ship to present cargo interests or their agent with written notice that the ship has arrived and is ready to load or discharge, as the case may be. some charter parties provide that this notice may be offered at certain times only, for example during office hours.

 

Tenor 

Time and date for payment of a draft.

 

Terminal 

An assigned area in which containers are prepared for loading into a vessel, train, truck, or airplane or are stacked immediately after discharge from the vessel, train, truck, or airplane.

 

Terminal Charge

A charge made for a service performed in a carrier’s terminal area.

 

Terms of Sale 

The point at which sellers have fulfilled their obligations so the goods in a legal sense could be said to have been delivered to the buyer. They are shorthand expressions that set out the rights and obligations of each party when it comes to transporting the goods. Following, are the thirteen terms of sale in international trade as Terms of Sale reflected in the recent amendment to the International chamber of Commerce Terms of Trade (INCOTERMS), effective July 1990: exw, fca, fas, fob, cfr, cif, cpt, cip, daf, des, deq, ddu and ddp. 

 

– EXW (Ex Works) (…Named Place): A Term of Sale which means that the seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller’s premises to the desired destination. This term thus represents the minimum obligation for the seller.

 

– FCA (Free Carrier) (… Named Place): A Term of Sale which means the seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.

 

– FAS (Free Alongside Ship) (…Named Port of Shipment): A Term of Sale which means the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment.This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.

 

– FOB (Free On Board) (…Named Port of Shipment): An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship’s rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.

 

– CFR (Cost and Freight) (…Named Port of Destination): A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship’s rail in the port of shipment. The CFR term requires the seller to clear the goods for export.

– CIF (Cost, Insurance and Freight) (…Named Place of Destination): A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer’s risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.

 

– CPT (Carriage Paid To) (…Named Place of Destination): A Term of Sale which means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.

 

– CIP (Carriage and Insurance Paid To) (…Named Place of Destination): A Term of Sale which means the seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer’s risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.

 

– DAF (Delivered At Frontier) (…Named Place): A Term of Sale which means the sellers fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining country. (continued)

 

– DDU (Delivered Duty Unpaid) (…Named Port of Destination): A Term of Sale where the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by failure to clear the goods for in time.

 

– DDP (Delivered Duty paid) (…Named Port of Destination): “Delivered Duty Paid” means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.

 

– DES (Delivered Ex Ship) (…Named Port of Destination): A Term of Sale where the seller fulfills his/her obligation to deliver when the goods have been made available to the buyer on board the ship, uncleared for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port destination.

– DEQ (Delivered Ex Quay, [Duty Paid]) (…Named Port of Destination): A Term of Sale which means the DDU term has been fulfilled when the goods have been available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto.

 

TBN

To Be Nominated.  (When the name of a ship is still unknown.)

 

TEU – Twenty Foot Equivalent Unit

Unit of measurement equivalent to one 20 foot shipping container. Thus a 40-foot container is equal to two t.e.u.s. This measurement is used to quantify for example, the container capacity of a ship, the number of containers on a particular voyage or over a period of time, or it may be the unit on which freight is payable.

 

Tonnage

100 cubic feet.

 

Through Bill of Lading

Bill of Lading issued by a shipping line for a voyage requiring on-carriage, thus involving at least one transshipment. According to the particular contract, the issuer of the Bill of Lading may be responsible for the goods throughout the voyage or only for one leg, acting as agent for the on-carriage. Often referred to simply as a through bill.

 

Through Rate 

The total rate from the point of origin to final destination.

 

Throughput Charge

The charge for moving a container through a container yard off or onto a ship.

 

Time

Frequently used term to mean laytime.

 

Time Charter

The hiring of a ship from a shipowner for a period of time. Under this type of contract, the shipowner places his ship, with crew and equipment, at the disposal of the charterer, for which the charterer pays hire money. Subject to any restrictions in the contract, the charterer decides the type and quantity of cargo to be carried and the ports of loading and discharging. He is responsible for supplying the ship with bunkers and for the payment of cargo handling operations, port charges, pilotage, towage and ship’s agency. The technical operation and navigation of the ship remain the responsibility of the shipowner. A ship hired in this way is said to be on time charter.

 

Time Charterer

A person or company who hires a ship for a period of time.

 

Time Charter-Party

A document containing the terms and conditions of a contract between a charterer and a shipowner for the hire of a ship for a period of time.

 

Time Draft 

A draft that matures either a certain number of days after acceptance or a certain number of days after the date of the draft.

 

Time Lost Waiting for Berth to Count

A Charter-Party expression which denotes that the laytime are to start from the time the Notice of readiness is presented by the master to the charterer’s agent, ever, though vessel is held up because no berth is available.

 

Time Reversible

Overall calculations of laydays, in loading and discharging in a voyage Charter-Party. Time saved in loading can be made up fro time lost, if any, in discharging or vice versa.

 

Time Sheet

Statement, drawn up by the ship’s agent at the loading and discharging ports, which details the time worked in loading or discharging the cargo together with the amount of laytime used. This latter figure, when compared with the time allowed in the voyage Charter-Party, is used by the shipowner and charterer to calculate demurrage or despatch, as the case may be.

 

Time to Begin on Arrival 

A Charter-Party clause referring to the laytirne in the strict sense that time is to count immediately on rival at the port of loading or discharging irrespective whether a berth is available or not.

 

TIR

– «Transport International par la Route.» Road transport operating agreement among European governments and the United States for the international movement of cargo by road. Display of the TIR carnet allows sealed containerloads to cross national frontiers without inspection.

 

TL – Abbreviation for “Trailer Load.”

 

TOFC 

Abbreviation for “Trailer on Flat Car.” The movement of a highway trailer on a railroad flatcar. Also known as Piggyback.

 

Ton Mile

Unit cargo ton/distance carried and covered. This is arrived at as follows: if two tons of merchandise are carried for 25 miles, then the “ton mile” will be 2 x 25 or 50 ton miles.

 

Tonnage – Generally refers to freight handled.

 

Top-Air Delivery

A type of air circulation in a container. In top air units, air is drawn from the bottom of the container, filtered through the evaporator for cooling and then forced through the ducted passages along the top of the container. This type of airflow requires a special loading pattern.

 

Towage – The charge made for towing a vessel.

 

TPC — Tons per Centimeter

A quantity, for example of cargo or fuel, needed to immerse a ship one further centimeter. This quantity varies not only ship by ship but also according to the quantity already on board.

 

TPD – Tons per Day

The quantity of cargo loaded or discharged each day. The time allowed by a shipowner to a charterer for loading or discharging, known as laytime, is often expressed as a number of tons per day.

 

TPI – Tons per Inch

A quantity, for example of cargo or fuel, needed to immerse a ship one further inch. This quantity varies not only ship by ship but also according to the quantity already on board.

 

Tractor 

Unit of highway motive power used to pull one or more trailers/containers.

 

Trade Acceptance 

A time or a date draft that has been accepted by the buyer (the drawee) for payment at maturity.

 

Traffic 

Persons and property carried by transport lines.

 

Trailer 

The truck unit into which freight is loaded as in tractor trailer combination. See Container.

 

Tramp Line 

An ocean carrier company operating vessels not on regular runs or schedules.  They call at any port where cargo may be available.

 

Transport 

To move cargo from one place to another.

 

Transportation & Exit (T&E)

Allows foreign merchandise arriving at one port to be transported in bond through the U.S. to be exported from another port, without paying duty.

 

Transship 

To transfer goods from one transportation line to another, or from one ship to another.

 

Transshipment Port

Place where cargo is transferred to another carrier.

 

Trust Receipt

Release of merchandise by a bank to a buyer while the bank retains title to the merchandise. The goods are usually obtained for manufacturing or sales purposes. The buyer is obligated to maintain the goods (or the proceeds from their sales) distinct from the remainder of the assets and to hold them ready for repossession by the bank.

 

Turnaround 

In water transportation, the time it takes between the arrival of a vessel and its departure.

 

Turn Time

Time during which a ship waits for a berth.

 

Twist Locks 

A set of four twistable bayonet type shear keys used as part of a spreader to pick up a container or as part of a chassis to secure the containers.

 

Two-Way Pallet 

A pallet so designed that the forks of a fork lift truck can be inserted from two sides only.

U

 

UBC

Universal bulk carrier.

 

UCE

Unforeseen circumstances excepted including MEBD (Main engine breakdown).

 

UCP 

Abbreviation for the “Uniform Customs and Practice for Documentary Credits,” published by the International Chamber of Commerce. This is the most frequently used standard for making payments in international trade; e.g., paying on a Letter of Credit. It is most frequently referred to by its shorthand title: UCP No. 500. This revised publication reflects recent changes in the transportation and banking industries, such as electronic transfer of funds.

 

UFC 

Abbreviation for “Uniform Freight Classification.”

 

Ullage 

The space not filled with liquid in a drum or tank.

 

UN/EDIFACT 

United Nations EDI for Administration, Commerce and Transport. EDI Standards are developed and supported by the UN for electronic message (data) interchange on an international level.

 

Unclaimed Freight

Freight that has not been called for or picked up by the consignee or owner.

 

Unclean Bill of Lading

See dirty Bill of Lading.

 

Undercharge 

To charge less than the proper amount.

 

Uniform Customs and Practices for Documentary Credits (UCP)

Rules for letters of credit drawn up by the Commission on Banking Technique and Practices of the International Chamber of Commerce in consultation with the banking associations of many countries. See Terms of Payment.

 

Unit Load 

Packages loaded on a pallet, in a crate or any other way that enables them to be handled at one time as a unit.

 

Unit Train 

A train of a specified number of railcars, perhaps 100, which remain as a unit for a designated destination or until a change in routing is made.

 

Unitization 

– The consolidation of a quantity of individual items into one large shipping unit for easier handling.

– Loading one or more large items of cargo onto a single piece of equipment, such as a pallet.

 

Unloading 

Removal of a shipment from a vessel.

 

U.S. Consular Invoice 

A document required on merchandise imported into the United States.

 

UU – Unless Used

Charter-Party term which provides that a proportion normally all or half, of time used to load or discharge, as the case may be, during excepted periods counts for the purpose of calculating total time used.

V

 

Validated Export License 

A document issued by the U.S. government; authorizes the export of commodities for which written authorization is required by law.

 

Validation 

Authentication of B/L and when B/L becomes effective.

 

Vanning 

A term for stowing cargo in a container.

 

Variable Cost 

Costs that vary directly with the level of activity within a short time. Examples include costs of moving cargo inland on trains or trucks, stevedoring in some ports, and short-term equipment leases. For business analysis, all costs are either defined as variable or fixed. For a business to break even, all fixed costs must be covered. To make a profit, all variable and fixed costs must be recovered plus some extra amount.

 

Ventilated Container 

A container designed with openings in the side and/or end walls to permit the ingress of outside air when the doors are closed.

 

Vessel Supplies for Immediate Exportation (VSIE) 

Allows equipment and supplies arriving at one port to be loaded on a vessel, aircraft, etc., for its exclusive use and to be exported from the same port.

 

Vessel Manifest 

The international carrier is obligated to make declarations of the ship’s crew and contents at both the port of departure and arrival. The vessel manifest lists various details about each shipment by B/L number. Obviously, the B/L serves as the core source from which the manifest is created.

 

Viz. 

Namely. Used in tariffs to specify commodities.

 

V/C – Voyage Charter

Contract of carriage in which the charterer pays for the use of a ship’s cargo space for one, or sometimes more than one, voyage. Under this type of charter, the shipowner pays all the operating costs of the ship while payment for port and cargo handling charges are the subject of agreement between the parties. Freight is generally paid per unit of cargo, such as ton, based on are agreed quantity, or as lump sum irrespective of the quantity loaded, the terms and conditions of the contract are set down in a document known as Charter-Party. A ship chartered in this way is said to be on voyage charter.

 

Voyage Charter-Party

Document containing the terms and conditions of a contract between a charter and a shipowner for the use of a ship’s cargo space for one, or more than one voyage.

 

Vovage Estimate

Calculation of the profitability of a prospective voyage of a ship using estimated figures. In the case of a tramp shipowner, the estimate is used to compare two or more possible voyage in order to determine which is the most profitable. Similarly, a time charterer would compare two or more ships so as to charter the one that is least costly overall. The content of an estimate varies according to the type and terms of the charter and whether a shipowner or charterer is making the calculation. For an owner, the principal costs are running cost of the ship (or hire money for a time charterer), bunker costs, port charges and canal dues together with ship’s agency fee and any cargo handling costs; the revenue is the daily hire, in the ease of a time charter, or the freight, less any commission in the case of a voyage charter.

W

 

War Clause

Clause in a Bill of Lading or Charter-Party which sets out the course of action open to the master of a ship in the event that the ship or her cargo or crew would be put at risk because of war should the voyage proceed. The clause varies according to individual contracts but invariably the master would not be required to put his ship or crew at risk.

 

War Risk 

Insurance coverage for loss of goods resulting from any act of war.

 

Warehouse 

A place for the reception, delivery, consolidation, distribution, and storage of goods/cargo.

 

Warehouse Entry 

Document that identifies goods imported when placed in a bonded warehouse. The duty is not imposed on the products while in the warehouse but will be collected when they are withdrawn for delivery or consumption.

 

Warehouse Withdrawal for Transportation Immediate Exportation (WDEX)

Allows merchandise that has been withdrawn from a bonded warehouse at one U.S. port to be exported from the same port exported without paying duty.

 

Warehouse Withdrawal for Transportation (WDT)

Allows merchandise that has been withdrawn from a bonded warehouse at one port to be transported in bond to another port, where a superseding entry will be filed.

 

Warehouse Withdrawal for Transportation Exportation (WDT&E)

Allows merchandise that has been withdrawn from a bonded warehouse at one port to be transported in bond through the U.S. to be exported from another port, without paying duty.

 

Warehousing  – The storing of goods/cargo.

 

Waybill (WB) 

A document prepared by a transportation line at the point of a shipment; shows the point of the origin, destination, route, consignor, consignee, description of shipment and amount charged for the transportation service. It is forwarded with the shipment or sent by mail to the agent at the transfer point or waybill destination. Abbreviation is WB. Unlike a bill of lading, a waybill is NOT a document of title.

 

WCCON

Whether Cleared Customso r Not

 

WEF – with effect from

This is said, for example, of the date when a new or amended surcharge of a shipping line takes effect.

 

Weight Cargo 

A cargo on which the transportation charge is assessed on the basis of weight.

 

Weights and Measures

Measurement ton   40 cubic ft or one cubic meter.

Net ton, or short ton   2,000 lbs.

Gross ton/long ton   2,240 lbs.

Metric ton/kilo ton   2,204.6 lbs.

Cubic meter   35.314 cubic ft.

 

Well Car 

Also known as stack car. A drop-frame Rail flat car.

 

Wharfage (Whfge.) 

Charge assessed by a pier or dock owner against freight handled over the pier or dock or against a steamship company using the pier or dock.

 

WIBON

Whether In Berth or Not.

 

WIFPON

Whether in Free Pratique or Not

 

Windy Booking

A freight booking made by a skipper or freight forwarder to serve space but not actually having a specific cargo at the time the booking is made.   Carriers often overbook a vessel by 10 to 20 % in recognition that “windy booking” cargo will not actually ship.

 

WIPPON – Whether in Port or Not

 

Withdraw a ship from the service of the charterer (to)

To remove control of a ship from the time charterer for the remaining period of the charter. This action is taken by the shipowner in accordance with the charter when there has been serious breach of contract, commonly when the charterer has failed to pay hire money on time.

 

Without Recourse 

A phrase preceding the signature of a drawer or endorser of a negotiable instrument; signifies that the instrument is passed onto subsequent holders without any liability to the endorser in the event of nonpayment or nondelivery.

 

W.M. (W/M) 

Abbreviation for “Weight or Measurement;” the basis for assessing freight charges. Also known as “worm.” The rate charged under W/M will be whichever produces the highest revenue between the weight of the shipment and the measure of the shipment.

 

WOG

Without Guarantees

 

Workable Hatch

Term in a voyage charter which determines the number of days allowed for loading and I or discharging ‘by dividing the quantity of cargo in the largest hatch by the quantity per workable hatch per day as stipulated in the Charter-Party. Difficulties of interpretation may arise in the calculation of laytime allowed when expressed in this way, particularly if the ship has hatches capable of being worked by two gangs simultaneously. Also referred to as a working hatch.

 

Workable Crane

Term in a voyage charger which determines the number of days allowed for loading and / or discharging by the number of cranes available for use by the charterers for operations. Generally expressed in tons per workable crane per day.

 

Working Day

When normal working is carried out in a port.

 

Working Day of 24 Consecutive Hours

Working day equates to one layday. The word consecutive was introduced after it was ruled in court that a working day of 24 hours might be considered as more than one layday according to the length of normal working time each day in a port.

 

Working Day of 24 Hours

Period of time which contains 24 normal working hours. If it is the custom of a port that eight hours represents the normal working time per day, then a working day of 24 hours would be considered as three laydays.

 

WP – Weather Permitting

Term used in a voyage charter to signify that laytime does not count when weather conditions do not allow loading or discharging operations to be carried out.

 

WPA 

Abbreviation for “With Particular Average.”

 

W.T.L. 

Western Truck Lines.

 

WTS – Working Time Saved

Charter-Party term used to define one method by which despatch money is calculated, that is, by deducting laytime used from laytime allowed. If, for example, a Charter-Party provides for six laydays for loading and the charterer uses three days, he is entitled to three days’ despatch money. Also referred to as laytime saved.

 

WWD – Weather Working Day

Days on which work is normally carried out at a port arid which counts as laytime unless loading or discharging would have ceased because of bad weather.

 

WWR – When Where Ready

Frequently used provision in a time charter to determine the time and place of delivery / redelivery of a ship by the charterer to the shipowner. This term is qualified in such a way as to make the time and place unambiguous, such as on completion of discharge at a named port, abbreviated to w.w.r.c.d. followed by the name of the port.

 

WWRCD – When Where Ready on Completion of Discharge

See WWR – when where ready above.

XYZ

 

Yard 

A classification, storage or switching area.

 

York-Antwerp Rules of 1974 

Established the standard basis for adjusting general average and stated the rules for adjusting claims.

 

Zulu Time 

Time based on Greenwich Mean Time.