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Commercial and Operational Shipping

Commercial shipping, chartering, economics and finance glossary (page 2)

How shipping is priced, financed, and traded as a cyclical asset business: Stopford’s four markets, the shipping cycle and asset play, sector dynamics in dry bulk, tankers, container, and gas, and chartering across voyage, time, bareboat, and COA forms. Covers Worldscale and the Baltic indices, forward freight agreements, time charter equivalent and OPEX, ship finance and the Poseidon Principles, the Norwegian Saleform, and tonnage tax.

305 defined terms.

Showing 55 on this page (page 2 of 2).

S

Securities purchase agreement
Agreement for purchase of debt or equity securities in shipping.
Senior secured debt
First lien debt secured by mortgage and assignment of earnings.
Service contract
Long term agreement between liner shipper and carrier.
Settlement rate
BFA settlement price for FFA contracts.
SHELLTIME 4
Shell standard time charter party for tankers.
SHELLVOY 6
Shell standard tanker voyage charter party.
SHIPMAN 2024
BIMCO standard ship management agreement, 2024 revision.
SHIPSALE 22
BIMCO sale and purchase form 2022.
Short sea shipping
Maritime transport over short distances within a region.
Single hull tanker
Pre-MARPOL Annex I single hull tanker, largely phased out.
Slot Charter
Charter of a defined number of TEU slots on a containership.
Spot market
Single voyage market.
Stem date
Date cargo is committed by the shipper.
Stowage factor
Volume occupied by one tonne of cargo.
Subjects
Conditions to be lifted before a fixture becomes binding.
Suezmax
Tanker ~150,000-160,000 DWT, largest for Suez Canal pre-deepening.
SUPPLYTIME 2017
BIMCO standard offshore time charter party.
Supramax
Dry bulk segment of about 50,000 to 60,000 dwt.

T

Tanker pool
Commercial pool of tanker tonnage sharing earnings.
TCE
Time charter equivalent earnings per day.
Tender of NOR
Service of notice of readiness on the charterer.
Time Bar
Limitation period (one year under Hague-Visby Article III Rule 6).
Time Charter
Charter for a defined period at hire per day.
Time charter equivalent
Voyage revenue minus voyage costs, divided by total voyage days.
Tonnage tax
Alternative tax regime based on ship tonnage rather than profits.
Topping off
Final cargo intake to reach desired loadline.
Tramp shipping
Bulk shipping operating on charter rather than schedule.
Trip charter
Time charter for a single voyage or short trip.

U

Ullage
Empty space above liquid cargo in a tank.
Underlying contract
Original cargo or trade contract underlying a charter.
Unit load
Standardised handling unit such as a container or pallet.
Up to good safe port
Charter language warranting safe port nominations.
US Maritime Administration
MARAD, US government maritime authority.
Utilisation
Percentage of available ship time earning revenue.

V

Valuation report
SP broker estimate of market value.
Variation order
Change order to a shipbuilding or repair contract.
VLCC
Very Large Crude Carrier, 200,000-320,000 DWT.
VLGC
Very Large Gas Carrier, ~84,000 m3 LPG.
VLOC
Very Large Ore Carrier, 200,000-400,000 DWT.
Voyage Charter
Charter for a specific voyage between named ports.
Voyage estimate
Pro forma calculation of voyage economics.
Voyage instructions
Charterer's orders for the voyage.

W

Wages, victuals, and stores
Crew related operating cost items.
WAR Risk Insurance
Cover for war and strikes perils excluded from hull policy.
Warranty of seaworthiness
Express or implied undertaking by owner.
Waybill
Sea waybill, non-negotiable transport document.
Weather routing
Optimum-track routing per environmental forecasts.
Weather working day
WWD, day of 24 hours suitable for cargo work.
Whether in berth or not
WIBON, NOR may be tendered whether the vessel is at berth or not.
Whether in port or not
WIPON, similar laytime trigger.
WORLDSCALE
Tanker freight rate scale set annually by the Worldscale Associations.
Worldscale flat
WS100, benchmark rate published by Worldscale.

X

Xeneta XSI
Container freight rate index based on shipper contract data.

Y

York-Antwerp Rules
CMI-drafted rules for adjustment of general average; current editions 1994, 2004, 2016.

Z

Zero off-hire clause
Clause limiting events causing off-hire.

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