Extended Operational and Trade Vocabulary

Chartering, Shipbroking and Freight Trading glossary

The chartering and shipbroking desk vocabulary: address commission and agency fees, affreightment, the AFRA benchmark and the Aframax size class it named, the charter forms and clauses, and the freight-negotiation terms a broker uses. Grounds each term in the charter recap and the commercial negotiation it belongs to.

283 defined terms.

Showing 250 on this page (page 1 of 2).

A

Address Commission (ADCOM): Commission deducted from freight or hire and returned to the charterer, typically 1.25 to 3.75 percent.
Affreightment: Contract for the carriage of goods by sea.
AFRA (Average Freight Rate Assessment): Monthly tanker freight benchmark published by the London Tanker Brokers' Panel since 1954.
Aframax: Tanker segment of roughly 80,000 to 120,000 dwt named after the AFRA scale.
Agency fee: Charge by a carrier or NVOCC for documentation and local representation.
AGW (All Going Well): Qualifier on a fixture indication meaning subject to everything proceeding without disruption.
All Time Saved (ATS): Despatch basis covering laytime saved plus periods excepted from laytime.
Always accessible: Berth warranty that the vessel can reach the berth at any time.
Always Afloat (AA): Warranty that the vessel will not rest on the ground at any state of tide.
Amended Laytime: Recalculated laytime after correction of facts in the statement of facts.
Amwelsh 93: Americanised Welsh Coal Charter 1993, dry bulk voyage charter form.
Anti-Technicality Clause: Time charter provision requiring the owner to warn the charterer before withdrawing the vessel for non-payment of hire.
APS (Arrival Pilot Station): Delivery or redelivery point referenced to the pilot boarding station.
ASBA II: Association of Ship Brokers and Agents tanker voyage charter party.
Asbatankvoy: Standard tanker voyage charter party of the Association of Ship Brokers and Agents.
ASBATIME: ASBA time charter party, a US-market alternative to NYPE.
ATDNSHINC (Any Time Day or Night Sundays and Holidays Included): NOR tendering basis irrespective of working hours.

B

Backhaul: Return leg of a voyage, usually at lower freight rates than the headhaul.
Bagged Cargo Clause: Provision allocating responsibility for spillage and tally on bagged commodities.
Bale capacity: Cargo volume measured to the inside of frames and below beams.
Ballast bonus: Lump sum payable to owners to compensate for an unprofitable ballast leg before delivery.
Ballast leg: Voyage segment performed without revenue cargo.
Baltic Capesize Index (BCI): Capesize segment of the Baltic indices.
Baltic Clean Tanker Index (BCTI): Baltic Exchange index for clean petroleum product tankers.
Baltic Dirty Tanker Index (BDTI): Baltic Exchange index for crude oil tankers.
Baltic Dry Index (BDI): Composite dry-bulk freight index published by the Baltic Exchange.
Baltic Exchange: London-based provider of freight market information and assessments.
Baltic Forward Assessment (BFA): Daily Baltic Exchange forward curve used to price and settle FFAs.
Baltic Handysize Index (BHSI): Baltic Exchange index for Handysize dry bulkers.
Baltic LNG Index (BLNG1/BLNG2/BLNG3): Baltic LNG routes Australia to Japan, US Gulf to UK Continent, and US Gulf to Japan.
Baltic LPG Index (BLPG1/BLPG2/BLPG3): Baltic VLGC routes Ras Tanura to Chiba, Houston to Flushing, and Houston to Chiba.
Baltic Panamax Index (BPI): Panamax segment of the Baltic indices.
Baltic Supramax Index (BSI): Supramax segment of the Baltic indices.
Bareboat Charter: Demise charter under which the charterer becomes disponent owner.
BARECON 2001: BIMCO standard bareboat charter party, current widely used form.
Beneficial Owner: Party with ultimate economic ownership of the vessel behind the registered owner.
Berth charter: Voyage charter where laytime starts when the vessel is at berth.
Berth Standard of Average Accumulation: Method for apportioning laytime when multiple charterers share a berth.
Best Endeavours: Obligation to take all reasonable steps but not absolute guarantee of result.
Bill of Lading (B/L): Receipt for cargo, evidence of the contract of carriage and document of title.
BIMCO: Baltic and International Maritime Council, drafter of standard maritime contracts.
BIMCO Bunker Quality Clause for Time Chartering: Standard clause governing bunker specifications, sampling and claims.
BIMCO Hold Cleaning/Residue Disposal Clause: Allocates costs and responsibilities for cleaning holds between cargoes.
BIMCO ISPS/MTSA Clause: Allocates costs and delays arising from ship and port security compliance.
BIMCO Sanctions Clause: Allows owners or charterers to refuse trade that would breach designated sanctions regimes.
BIMCO War Risks Clause (CONWARTIME / VOYWAR): Permits route deviation or refusal to enter war risk areas.
Both-to-Blame Collision Clause: bill of lading clause obliging cargo to indemnify the carrying ship against cargo liability paid by the non-carrying ship and recovered from the carrier under US law.
BPCOA: BP standard contract of affreightment for crude oil.
BPTIME 3: BP time charter party for tankers, third edition.
BPVOY4: BP Shipping voyage charter party fourth edition for crude and dirty products.
BPVOY5: BP Shipping voyage charter party fifth edition, updated tanker voyage form.
Breach of Charter: Failure by either party to perform an obligation under the charter party.
Breaking Bulk: Commencement of cargo discharge.
Brokerage: commission paid by underwriters to the placing broker, typically deducted from premium.

C

C10_14: Baltic Capesize transpacific round voyage route.
C14: Baltic Capesize China to Brazil round voyage.
C17: Baltic Capesize route Saldanha Bay to Qingdao for iron ore.
C3: Baltic Capesize route Tubarao to Qingdao for iron ore.
C5: Baltic Capesize route West Australia to Qingdao for iron ore.
C7: Baltic Capesize route Bolivar to Rotterdam for coal.
Cancelling Date (CANCELLING): Last date by which the vessel must tender NOR or the charterer may cancel.
Cargo retention clause: Tanker clause allowing charterers to deduct freight for unpumpable residues.
Cargoworthy: Condition that the holds or tanks are fit to receive the intended cargo.
Centrocon: BIMCO grain voyage charter party for River Plate trade.
Cesser Clause: Charterparty term ending charterer's liability after cargo loaded, against owner's lien.
CFR (Cost and Freight): Incoterms sale term where seller pays freight to the named destination port.
Charter party: Contract for the hire of a ship or carriage of cargo.
Charterer: Party who hires the vessel under a charter party.
CIF (Cost, Insurance and Freight): Incoterms sale term including marine insurance to the destination port.
Clean fixture: Concluded charter free of subjects.
Clean on Board: Bill of lading remark indicating cargo received in apparent good order.
Clean Petroleum Products (CPP): Gasoline, naphtha, jet, kero, gasoil.
Clean Recap: Final fixture summary agreed without further amendments.
COA (Contract of Affreightment): Contract for the carriage of multiple cargo parcels over a period without nominating a specific vessel.
COASTCON: BIMCO coasting voyage charter party for short sea trades.
COASTHIRE: BIMCO coasting time charter party.
COGSA: US Carriage of Goods by Sea Act 1936, applying to outbound bills of lading.
COIN (Commission Paid by Owner): Indication that brokerage is for owner's account.
Combination carrier: Vessel able to carry containers and other cargo such as ro-ro or break-bulk.
Commencement of Laytime: Time at which counted laytime begins, governed by NOR and the charter terms.
Common Carrier: Carrier offering services to the public, with strict liability at common law.
CONGENBILL: BIMCO bill of lading designed for use with GENCON.
Consecutive Voyages (CVS): Series of back-to-back voyage charters on a fixed route.
Contract Rate: Agreed freight or hire rate in a COA or long-term contract.
CONWARTIME 2013: BIMCO war risks clause for time charters.
CP date: Date the charter party is signed.
CQD (Customary Quick Despatch): Loading or discharge to proceed as fast as customary at the port without fixed laytime.
Crude Oil Washing (COW): SOLAS-required tank washing using crude during discharge on relevant tankers.

D

DA (Disbursement Account): Statement of port expenses prepared by the agent for owner or charterer.
Dead freight: Charge for unused bunker capacity reserved but not delivered.
Deadweight (DWT): Difference between loaded and lightship displacement.
Deductions from Hire: Charterer's offsets such as off-hire periods, owner's expenses or bunker disputes.
Delivery: Handover of the vessel to the time or bareboat charterer at the agreed place and condition.
Demise charter: Bareboat charter.
Demurrage: Liquidated damages for detention of ship beyond laytime.
Despatch Money (Despatch): Reward to the charterer for completing loading or discharge in less than laytime, usually half the demurrage rate.
Deviation: Departure from the contractual or geographic voyage; historically a fundamental breach.
Disponent Owner: Charterer who treats the vessel as if owner for sub-letting.
Documentary Letter of Credit: Bank instrument used in commodity trades, often requiring specific B/L wording.
Double banking: two vessels moored alongside each other at one berth.
Drop Anchor Clause: Time charter provision regarding orders to anchor and resulting cost allocation.
Dry-Dock Clause: Time charter clause regulating periodic dry-docking obligations and off-hire treatment.
Dunnage: Disposable wood, mats, or air bags used to protect, separate, and chock cargo.

E

ECDIS Clause: BIMCO clause addressing Electronic Chart Display and Information System requirements.
EEX (European Energy Exchange): Exchange offering cleared dry FFA and tanker freight derivatives.
EFA (Energy Forward Agreement): Cleared tanker FFA settled against Baltic tanker assessments.
Employment and Indemnity Clause: Time charter clause requiring the master to follow charterer's orders, with owner indemnified for consequences.
Even if Used (EIU): Excepted period of laytime that does not count even when work takes place.
Excepted Period: Time excluded from laytime by the charter party, such as bad weather or holidays.
Exclusive Broker: Broker appointed on a sole-agency basis for a particular fixture or account.
EXXONMOBIL VOY: Tanker voyage charter party issued by ExxonMobil.

F

FD (Free Despatch): Voyage term where no despatch is payable to the charterer.
FDD (Freight, Demurrage and Defence): P&I cover for charterer's contractual disputes.
FFA (Forward Freight Agreement): Cash-settled derivative on Baltic Exchange routes used to hedge freight exposure.
FFABA: Forward Freight Agreement Brokers Association standard FFA terms.
FIO (Free In and Out): Charterer pays loading and discharging costs, owner pays only sea freight.
FIOS (Free In and Out Stowed): As FIO, plus stowage cost for charterer's account.
FIOST: Free in, out, stowed, and trimmed.
Firm Offer: Binding offer open for acceptance for a stated short period.
Fixture: Concluded charter party agreement.
FOSFA: Federation of Oils, Seeds and Fats Associations; sets vegoil shipping cleanliness rules.
Freight: Consideration for carriage; payable in advance, on delivery, or pro rata itineris.
Frontline Tanker Pool (Frontline Management): Commercial pool for VLCC and Suezmax tonnage operated by Frontline.
Frustration: Doctrine discharging contracts where performance is rendered impossible or radically different.
Full and Complete Cargo: Charterer's obligation to provide a cargo filling the vessel to deadweight or capacity, whichever is reached first.
FWPD (Fresh Water Per Day): Vessel description warranty for freshwater production.

G

GA (General Average): Loss-sharing mechanism for sacrifices and expenditures incurred for common safety, governed by York-Antwerp Rules.
GASTIME: BIMCO time charter party for gas tankers.
GASVOY 2005: BIMCO voyage charter party for liquefied gases other than LNG.
GENCOA: BIMCO standard contract of affreightment for dry bulk.
GENCON 1994: BIMCO uniform general charter, the most widely used dry bulk voyage form.
GENCON 2022: Updated BIMCO General Charter Party 2022.
GENTIME: BIMCO general time charter party.
GENWAYBILL: BIMCO non-negotiable sea waybill.
Geographical Rotation: Requirement that loading or discharging ports be called in geographic order.
Grain capacity: Cubic capacity available for grain cargo.
Greater Inducement Clause: Time charter clause providing for additional hire if vessel performs above warranty.

H

Hague Rules 1924: International Convention for the Unification of Certain Rules of Law Relating to Bills of Lading.
Hague-Visby Rules: 1968 Visby Protocol and 1979 SDR Protocol to the Hague Rules.
Hamburg Rules 1978: UN Convention on the Carriage of Goods by Sea, in force 1992; limited adoption.
Handysize: Dry bulk segment of about 10,000 to 40,000 dwt.
Head Charter: Top-level charter from owner to first charterer, who may sub-charter.
HEAVYCON 2007: BIMCO heavy lift voyage charter party.
HEAVYLIFTVOY: BIMCO standard heavy lift voyage form for project cargo.
Heidmar Pools: Commercial pools (Sigma, Star, Seawolf) operated by Heidmar for tankers.
Himalaya Clause: Bill of lading clause extending carrier defenses to servants and subcontractors.
Hire: Periodic payment by time or bareboat charterer for the use of the vessel.
Hold Cleaning Clause: Allocates responsibility and cost for preparing holds between cargoes.

I

ICA (Inter-Club NYPE Agreement): Apportionment regime between P&I Clubs for cargo claims under NYPE-style charters.
IFO 380 / IFO 180: Heavy fuel oil grades commonly referenced in bunker clauses prior to IMO 2020.
IMO 2020 Sulphur Cap Clause (BIMCO): Allocates responsibilities for the 0.50 percent global sulphur limit.
Implied Term: Term read into the charter by law or custom even if not written.
In Geographical Rotation: Voyage instruction requiring ports to be visited in geographic sequence.
Indication (Indic): Non-binding rate or terms suggested before a firm offer.
INTERCOA 80: BIMCO contract of affreightment for tankers, sister to INTERTANKVOY.
INTERCONSEC 76: Consecutive voyage charter party for tankers.
INTERTANKVOY 76: International tanker voyage charter party.
ISM Clause (BIMCO): Warrants compliance with the International Safety Management Code.
ISPS Clause (BIMCO): Allocates security-related costs and delays under the ISPS Code.

J

JCC (Japan Crude Cocktail): Price index sometimes referenced in LNG and Asian crude contracts of affreightment.
Joint Survey: Inspection attended by both load and discharge interests.

K

K-Line Pool: Tonnage pool arrangements operated by Kawasaki Kisen Kaisha for selected sectors.
Kamsarmax: 80,000-85,000 DWT bulker.

L

Laycan: Layday and cancelling window of a voyage or time charter.
Laytime: Time allowed for loading or discharging under a voyage charter.
Laytime Definitions for Charter Parties 2013: Standard BIMCO/CMI/FONASBA/INTERCARGO/INTERTANKO definitions of laytime terms.
Lien on Cargo: Carrier's right to retain cargo as security for freight, demurrage or general average.
Lien on Sub-Freights: Owner's right to claim hire by intercepting sub-charterer's freight payments.
LINERTIME 2015: BIMCO time charter for liner trades.
LNGVOY 2005: BIMCO voyage charter party for liquefied natural gas.
Loadicator Clause: Tanker clause requiring use of an approved stress and stability calculator.
LOI (Letter of Indemnity): Indemnity issued to the carrier for actions such as delivery without original bills of lading.
Long-Term COA: Multi-year contract of affreightment, common in iron ore, coal and LNG.

M

Maintain Class Clause: Owner's obligation to keep the vessel in class throughout the charter.
Marpol Sample Clause (BIMCO): Allocates sampling responsibilities under MARPOL Annex VI.
Master's Discretion: Preserved under SOLAS V/34-1.
Mid-Range (MR): Product tanker of about 40,000 to 55,000 dwt.
Mid-Voyage Bunker Survey: Inspection to verify quantity and quality of bunkers during a time charter.
Mitigation: Duty to take reasonable steps to reduce loss following a breach.

N

Named Account: Specific charterer named in the recap, often a major oil company or trading house.
New Jason Clause: Charter clause preserving general average rights in jurisdictions like the United States.
NOR (Notice of Readiness): Ship's notification at port that it is ready to bunker.
NOR Tendering Clause: Defines where, when and how NOR may be validly tendered.
NOS Clearing: Norwegian clearing house used historically for cleared FFAs and tanker derivatives.
NYPE 1946: New York Produce Exchange time charter party, 1946 revision.
NYPE 1993: Updated NYPE form widely used in dry bulk and container trades.
NYPE 2015: New York Produce Exchange standard time charter form.

O

Off-Hire: Period under a time charter during which hire ceases due to specified events.
Off-hire survey: Joint survey at redelivery.
OPA 90 Clause: Addresses US Oil Pollution Act of 1990 liabilities under tanker charters.
Operations Department: Owner or charterer team handling voyage execution after fixing.
Optional Cargo: Cargo that may be carried at charterer's option, often with rate adjustment.
Owner's Reps: Representatives appointed by the owner during loading, discharge or major operations.

P

P1A: Baltic Panamax transatlantic round voyage.
P2A: Baltic Panamax route Skaw-Gibraltar to Far East.
P3A: Baltic Panamax transpacific round voyage.
P4A: Baltic Panamax route Far East to Continent.
P5TC / P82: Panamax 5 time charter average and 82,500 dwt revised basket.
Panel Broker: Member of a named owner's or charterer's broker panel with privileged access to its business.
Paramount Clause: Incorporates the Hague or Hague-Visby Rules into the charter or bill of lading.
Partial Charter: Charter of part of the vessel's cargo space.
Performance claim: Claim arising from breach of speed or consumption warranties.
Period Time Charter: Time charter for a defined duration such as six months, one year or multi-year.
Pool Manager: Entity that commercially operates a tonnage pool on behalf of participating owners.
Port Charter: Voyage charter where laytime starts upon arrival within the legal limits of the port.
Port Disbursement Account (DA): Itemized statement of port costs prepared by the agent.
Pratique: Health clearance granted by port authorities allowing the vessel to interact with shore.
Pre-Loading Survey: Inspection of holds, lashings, and cargo condition before loading.
Pro-Rata Hire: Hire calculated for part of a period, common at delivery or redelivery.

Q

Quantity Tolerance (MOLOO / MOLCO): More or less in owner's or charterer's option, defining cargo quantity flexibility.

R

Reachable on Arrival: Berth warranty that a berth will be available immediately upon arrival.
Recap: Recapitulation message summarizing all agreed main terms of the fixture.
Redelivery: Return of the vessel to the owner at the end of a time or bareboat charter.
Redelivery Notice: Sequential notices to the owner forecasting redelivery.
Reversible Laytime: Laytime aggregated across load and discharge, allowing time saved at one to offset time used at the other.
REX (Rate of Exchange) Clause: Hire payment clause specifying currency conversion mechanics.
Round Voyage: Voyage returning the vessel to the loading region after discharge.

S

Safe Berth Warranty: Charterer's promise that the nominated berth will be safe for the vessel.
Safe Port Warranty: Charterer's promise that nominated ports are safe in the prevailing circumstances.
Sale Form (NSF / Norwegian Saleform 2012): Standard memorandum of agreement for second-hand vessel sales, related to chartering practice.
Sanctions Clause (BIMCO): Permits refusal of orders or trades that breach designated sanctions regimes.
Scale Days: Working days defined for laytime, often by port custom or charter party.
SHELLLNGTIME 1: Shell standard LNG time charter party, first edition.
SHELLLNGVOY: Shell LNG voyage charter party.
SHELLTIME 4: Shell standard time charter party for tankers.
SHELLVOY 5: Shell voyage charter party for tankers, fifth edition.
SHELLVOY 6: Shell standard tanker voyage charter party.
SHEX (Sundays and Holidays Excepted): Laytime basis excluding Sundays and holidays.
SHEX EIU: Sundays and holidays excepted even if used.
SHEX UU: Sundays and holidays excepted unless used.
Shifting: Movement of cargo from stowed position; may cause loss of stability.
SHINC (Sundays and Holidays Included): Laytime running continuously including Sundays and holidays.
Sister Ship Clause: Allows arrest of a sister ship to enforce maritime claims.
Slot Charter: Charter of a defined number of TEU slots on a containership.
Speed and Consumption Warranty: Owner's promise regarding speed and bunker consumption under defined weather conditions.
Spot Fixture: Single voyage fixture for prompt loading.
Statement of Facts (SOF): Time log of port events signed by master and agent.
Stevedore Damage Clause: Allocates liability for damage caused by stevedores during loading or discharging.
Sub Details: Fixture subject pending agreement of detailed wording.
Sub Stem: Subject confirmation of cargo availability from the supplier.
Subjects (Subs): Conditions to be lifted before a fixture becomes clean and binding.
Suezmax: Tanker ~150,000-160,000 DWT, largest for Suez Canal pre-deepening.
SUPPLYTIME 2017: BIMCO standard offshore time charter party.

T

Tankers International (TI): VLCC commercial pool established by Euronav, OSG and others in 2000.
TC1: Baltic clean tanker route Middle East to Japan, LR2.
TC14: Baltic clean tanker route US Gulf to Continent, MR.
TC2: Baltic clean tanker route Continent to USAC, MR.
TC5: Baltic clean tanker route Middle East to Japan, LR1.
TC7: Baltic clean tanker route Singapore to Australia, MR.
TCE (Time Charter Equivalent): Voyage earnings expressed as daily revenue net of voyage costs, comparable to time charter hire.