Extended Operational and Trade Vocabulary

Ship Sale and Purchase, Management Contracts and Valuation glossary

The sale-and-purchase and valuation vocabulary: acceptance certificates and delivery surveys, the brokers and research houses publishing valuations, address commission, and the memorandum of agreement terms. Grounds each term in the secondhand transaction, the management contract, or the valuation method it belongs to.

241 defined terms.

A

ABS: American Bureau of Shipping; IACS member classification society.
ABS Nautical Systems: Fleet management software suite owned by ABS.
Acceptance Certificate: Buyers' written acceptance of vessel at delivery.
Address commission: Commission deducted from gross freight or hire payable to the charterer.
Affinity Research: London shipbroker and research firm publishing valuations and reports.
Affinity Shipping LLP: Tanker and dry bulk broker and consultancy.
AML: Anti-Money Laundering compliance regime.
AMOS: Asset Management Operating System maintenance and procurement software by SpecTec.
Anglo-Eastern Univan (AEUM): Hong Kong based third-party ship manager formed by 2015 merger.
Arbitration Clause: Dispute resolution provision in MoA, typically LMAA, SCMA, or SMA.
As-Is Where-Is: NSF/RECYCLECON delivery condition transferring the ship to the cash buyer in present state and location.
Asset Play: Buying a ship for resale gain rather than for trading income.
Assignment of earnings: Security taken by ship finance lenders over freight, hire, and insurance proceeds.
Assignment of Insurances: Security over hull, machinery, and P&I cover in favor of lender.
AWES: Association of European Shipbuilders and Shiprepairers newbuilding contract form.

B

Bareboat Charter Purchase (BBHP): Bareboat charter with purchase obligation at end of term.
BASS (Bass-net): Norwegian ship management software supplier.
Beihai Shipbuilding: Chinese yard, part of CSSC group.
Beneficial Owner: Party with ultimate economic ownership of the vessel behind the registered owner.
Bernhard Schulte Shipmanagement (BSM): Cyprus headquartered global third-party manager.
Bibby Ship Management: UK based ship manager, part of Bibby Line Group.
BIMCO: Baltic and International Maritime Council, drafter of standard maritime contracts.
BIMCO NEWBUILDCON: 2007 standard newbuilding contract form.
BIMCO SHIPMAN 2024: Latest standard ship management agreement, successor to SHIPMAN 2009.
BIS: DNV Built for In-water Survey notation indicating design features enabling underwater inspection in lieu of drydocking.
Bocomm Leasing: Bank of Communications Financial Leasing, major Chinese lessor.
Bottom Inspection: Examination of underwater hull, in drydock or by divers.
Bound by Subjects: Fixture not yet effective pending lifting of subjects.
Bowsprit Survey: Colloquial broker term for cursory pre-purchase look.
Brokerage: commission paid by underwriters to the placing broker, typically deducted from premium.
BRS Group: Paris based shipbroker publishing market reports and valuations.
Builder's Certificate: Statement by the shipyard certifying particulars and first ownership of a newly built ship, used at first registration.
Built Year: Year of delivery from yard, central age input to valuation.
Bulker Index: Indicative price assessment for dry bulk segments.
Bunkers ROB: Remaining on board fuel quantity adjusted at delivery price.
Buyer's Default: NSF 2012 Clause 13 remedies for purchaser non-performance.
Buyer's Nominee: SPV nominated by purchaser to take title at closing.
Buyer's Representatives: NSF 2012 Clause 15 right to place observers on board.

C

Cash against documents: Payment term where documents are released on payment.
Cash Buyer: Intermediary that purchases ships outright for cash and resells to recycling yards.
Chantiers de l'Atlantique: French shipbuilder at Saint-Nazaire, cruise specialist.
Charter Free Valuation: Vessel value disregarding existing employment.
CHIC: COSCO Shipping Heavy Industry Company, Chinese shipbuilder.
China State Shipbuilding Corporation (CSSC): State holding for major Chinese yards.
Clarksons Research: Valuation and market data arm of Clarkson PLC.
Class certificate: Document confirming the vessel's classification status.
Class Maintained: Sellers' obligation to keep class free of recommendations to delivery.
Class Records: Survey history and condition reports inspected by buyers.
Clean Broker: Broker with no conflicting interest in counterparty.
Closing: Simultaneous payment, delivery, and document exchange under MoA.
Closing Documents: Bundle including Bill of Sale, Protocol, class certificates, and tax declarations.
Closing Memorandum: Schedule of documents exchanged at completion.
CMB Financial Leasing: China Merchants Bank leasing subsidiary, ship finance provider.
COFR: US Certificate of Financial Responsibility for vessel oil pollution liability.
Columbia Shipmanagement: Cyprus based third-party manager, part of Columbia Group.
Commercial Management: Service covering chartering, post fixture, and freight collection.
Comparable Sales: Recent transactions used as benchmark for market valuation.
Compass Maritime: New Jersey based S&P broker and valuation house.
Condition on Delivery: NSF 2012 Clause 11 requiring substantially same condition as inspection.
Condition Survey: Overall assessment of structural and machinery condition for insurance or sale.
COSCO Shipping Heavy Industry: Repair and shipbuilding arm of COSCO group.
CREWMAN A: BIMCO crew management agreement on lump sum basis.
CREWMAN B: BIMCO crew management agreement on cost plus fee basis.
CSSC Leasing: Leasing arm of China State Shipbuilding Corporation.

D

Dalian Shipbuilding Industry (DSIC): Chinese yard under CSSC group.
Dark Fleet: Ships obscuring identity or ownership to evade sanctions, also called shadow fleet.
Deed of Covenant: Supplemental security document accompanying ship mortgage.
Delivery Alongside: Physical handover with vessel berthed at agreed terminal.
Delivery DWS: Dropping outward sea pilot, delivery on departure from port.
Delivery Notice: Sellers' formal advice of expected delivery date and place.
Delivery Port: Location where the ship is handed over from seller to cash buyer or recycler.
Delivery Range: Geographic window allowed for tendering NOR.
Deposit: Down payment under a memorandum of agreement, typically 10 percent.
Deposit Account: Joint account, dual signature, holding the buyers' deposit.
Depreciated Replacement Cost: Valuation built from newbuild cost minus straight line depreciation.
Disponent Owner: Charterer who treats the vessel as if owner for sub-letting.
DNB: Norwegian bank commonly acting as deposit holder in ship sales.
DNV: Det Norske Veritas (DNV); IACS member classification society.
Documentation Clause: NSF 2012 Clause 8 listing closing documents.
Dow Jones Risk & Compliance: Sanctions and KYC screening database.
Drydocking: Hull inspection in dock, addressed in NSF 2012 Clause 6.
Dual-Use Goods: Items with civilian and military applications subject to export control.
Due Diligence: Buyers' legal, technical, and commercial review before signing.

E

Effective Date: Date MoA becomes binding once subjects lifted.
Encumbrances: NSF 2012 Clause 9 warranty of free and unencumbered title.
End User Certificate: Statement of ultimate buyer used in sanctions checks.
Escrow Agent: Bank or trusted broker holding deposit until release conditions met.
EU Sanctions Consolidated List: Official register of EU restrictive measures.

F

Fair Haggle: Broker term for legitimate price negotiation within market range.
FATF: Financial Action Task Force, intergovernmental AML standard setter.
Final Recap: Closing version of fixture recap, incorporating all amendments.
Fincantieri: Italian shipbuilder, prime contractor for FREMM and Constellation.
FinCEN: US Financial Crimes Enforcement Network within Treasury.
Firm Offer: Binding offer open for acceptance for a stated short period.
Fixture: Concluded charter party agreement.
Fleet Management Limited (FML): Hong Kong based third-party ship manager.
FSP: Full ship management package covering technical, crew, and commercial.
Full Style: Complete legal name and registered address of contracting party.

G

General Lien: Right to retain property pending settlement of related debts.
German KG Crisis: 2008 to 2014 collapse of Hamburg KG retail ship funds.
Green Recycling: Recycling conducted in line with HKC or EU SRR standards.

H

Hanwha Ocean: Korean shipbuilder, former Daewoo Shipbuilding and Marine Engineering.
Hartland Shipping Services: London broker publishing market reports.
Hellenic Shipbrokers: Athens based brokering community, large in tanker S&P.
Howe Robinson Partners (HRP): London headquartered S&P and chartering broker.
HSBC: Bank used as escrow agent and ship finance lender.
Hudong-Zhonghua: Shanghai shipbuilder under CSSC, LNG carrier specialist.
Hyundai Heavy Industries (HHI): Korean shipbuilder; major LNG carrier yard alongside Samsung and DSME/Hanwha Ocean.
Hyundai Mipo Dockyard: HHI group yard specializing in medium range tankers.
Hyundai Samho Heavy Industries: HHI group yard building larger vessels.

I

IACS: International Association of Classification Societies, 12 members.
ICBC Leasing: Industrial and Commercial Bank of China leasing subsidiary.
Imabari Shipbuilding: Largest Japanese shipbuilder, headquartered in Ehime.
Indication: Non-binding price level given by broker pending firm offer.
Inspection Clause: NSF 2012 Clause 4 covering buyers' inspection rights.
Insurance Management: Service of arranging and administering H&M and P&I cover.
INTERMANAGER: International association of ship and crew managers.
IPO: Initial public offering, used by shipping companies to raise equity.
IT Management: Provision of fleet software, networks, and cybersecurity services.

J

Japan Marine United (JMU): Japanese shipbuilder formed by IHI and Universal merger.
Jiangnan Shipyard: Shanghai shipbuilder under CSSC, large container and LNG builder.
Joint Account: Deposit account requiring signatures of both parties to operate.
JOL: Japanese Operating Lease, sale and leaseback structure for ships.
JOLCO: Japanese Operating Lease with Call Option, tax based lease with purchase option.

K

KG: Kommanditgesellschaft, German limited partnership, vehicle for retail ship funds.
Know Your Customer (KYC): Onboarding due diligence on counterparties.
KS: Kommandittselskap, Norwegian limited partnership used in ship investment.

L

Last Cargo: Most recent cargo carried, important for tank cleanliness in tanker sales.
Last Done: Most recent comparable sale used as valuation reference.
Letter of Indemnity (LOI): Counter-promise to compensate for action taken at requester's request.
Letter of Intent (LOI): Pre-MoA expression of intent to negotiate, usually non-binding.
Lien: Charge over vessel for unpaid debts, must be cleared at delivery.
Limit of Liability: Cap on managers' liability under SHIPMAN, typically ten times annual fee.
Lloyd's List Intelligence: Maritime intelligence service used for compliance screening.
Lloyd's Register (LR): classification society founded 1760, IACS founding member, headquartered London.
LMAA: London Maritime Arbitrators Association.
Loan-to-Value (LTV): Mortgage covenant ratio of debt to vessel market value.
Lubricants ROB: Lube oil remaining on board, valued separately at delivery.

M

MARAD: US Maritime Administration, oversees Title XI loan guarantees.
Mareva Injunction: English asset freezing order, sometimes used in ship disputes.
MARINEDigital: Vessel performance and digitalization software supplier.
Maritime Strategies International (MSI): London based valuation and forecasting house.
Market Valuation: Estimate based on willing buyer and seller comparable evidence.
Memorandum of Agreement (MoA): Binding sale contract for a secondhand ship.
Memorandum of Understanding (MoU): Preliminary, often non-binding, statement of terms.
Meyer Werft: German shipbuilder at Papenburg, cruise specialist.
Mitsubishi Heavy Industries Shipbuilding: Japanese yard, ferry and specialized builder.
Mitsui E&S Shipbuilding: Japanese yard building bulkers and containers.
MMS Co Ltd: Mitsui O.S.K. Lines Maritime Management Singapore arm.
MOA Addendum: Supplemental amendment to executed Memorandum of Agreement.
Mortgage: Registered ship mortgage securing financing, governed by flag-state law.
Mortgagee's Notice: Notice to charterers protecting lender against direct payment to owner.

N

Naftiliaki: Greek maritime publication and market commentary source.
NAVMAN: BIMCO Cyprus-form precursor management agreement, less common today.
NEWBUILDCON: BIMCO standard shipbuilding contract.
NIPPONBUILDER 2000: Japanese newbuilding contract form.
NIPPONSALE 1999: Sale and purchase form of the Japan Shipping Exchange.
Nominee: SPV taking title for ultimate beneficial buyer.
Nordea: Nordic bank used as escrow holder in ship sales.
Norwegian Saleform (NSF): BIMCO published standard sale form, editions 1987, 1993, 2012, with Nordic 2024 update.
Notice of Readiness (NOR): Notice by master that ship is ready to load or discharge, starting laytime.
NSB Niederelbe Schiffahrtsgesellschaft: German ship manager based in Buxtehude.
NTS: New Times Shipbuilding, Chinese private yard at Jingjiang.

O

OceanScore: Hamburg based fleet emissions and management analytics provider.
OFAC: US Office of Foreign Assets Control, administers maritime sanctions.
OFAC SDN List: US Treasury Specially Designated Nationals list naming sanctioned persons and vessels.
OFSI: UK Office of Financial Sanctions Implementation, part of HM Treasury.
On Subjects: Fixture conditional on stated subjects being lifted.
Optional Cancelling: Buyer right to cancel if delivery missed by cancelling date.
Oshima Shipbuilding: Japanese yard specializing in handysize and supramax bulkers.
Outright Sale: Sale free of charter, vessel delivered with full commercial freedom.

P

Pacific Basin Manning: Crew management arm of Pacific Basin Shipping.
Partial Management: SHIPMAN scope limited to selected services, e.g. crew only.
Payment Clause: NSF 2012 Clause 3 governing balance payment against documents.
Pre-Purchase Inspection (PPI): Buyers' physical and documentary review before MoA.
Price Idea: Non-binding indication of acceptable price level.
Protocol of Delivery and Acceptance: Document recording handover time and place.
Purchase Price: NSF 2012 Clause 1 stated consideration for the vessel.

Q

Quiet Possession: Buyers' undisturbed enjoyment of vessel post delivery.

R

Recap: Recapitulation message summarizing all agreed main terms of the fixture.
Reference Class: Class to which vessel is sold and to be maintained until delivery.
Refinitiv World-Check: KYC and sanctions screening database, part of LSEG.
Refund Guarantee (RG): Bank guarantee securing yard repayment to buyer in newbuilding default.
Replacement Cost: New build price for equivalent vessel today.
Repudiation: Wrongful refusal to perform contract, triggering default remedies.
Right of First Refusal (ROFR): Contractual right to match third-party offer for sale.

S

SAJ Form: Shipbuilders Association of Japan standard newbuilding contract.
Sale and leaseback: SLB, sale of vessel to a financier with concurrent lease back.
Sanctions Screening: Automated checking of parties/vessels against sanctions lists.
SCMA: Singapore Chamber of Maritime Arbitration.
Scrap value: Demolition value of a ship.
SEB: Skandinaviska Enskilda Banken, escrow holder for many ship sales.
Sellers' Default: NSF 2012 Clause 14 remedies for non-performance by sellers.
Senior Secured Notes: Bond instrument secured by vessel mortgages.
Shanghai Waigaoqiao Shipbuilding (SWS): Chinese yard under CSSC group.
SHIPMAN 2009: 2009 edition of BIMCO standard ship management agreement.
SHIPMAN 2024: BIMCO standard ship management agreement, 2024 revision.
SHIPMAN 98: 1998 edition of BIMCO ship management agreement.
ShipNet: Norwegian fleet management software provider.
ShipPalm: Cloud based fleet management software, used by mid-size owners.
Singapore Ship Sale Form (SSF 2011): BIMCO and SSA jointly published secondhand sale form.
SMA: Society of Maritime Arbitrators, New York.
Spares ROB: Onboard spare parts inventory delivered with vessel.
Spectec: Maritime software supplier offering AMOS planned maintenance and fleet management.
SPV: Special Purpose Vehicle, single ship owning company.
SSA: Steamship Agent.
Standby Letter of Credit: Bank instrument sometimes substituting for cash deposit.
Star Bulk Manning: In-house manning entity of Star Bulk Carriers.
Subjects: Conditions to be lifted before a fixture becomes binding.
Subs Lifted: Confirmation that all conditional subjects have been satisfied.
Superintendent: Buyers' or owners' technical representative attending inspection or delivery.
Synergy Marine Group: Singapore based third-party ship manager.

T

Tax Clause: NSF 2012 Clause 10 allocating taxes and registration fees.
Technical Management: SHIPMAN service covering maintenance, class, and statutory compliance.
Thome Group: Singapore based ship manager.
Title: Legal ownership of the vessel, transferred by Bill of Sale.
Transfer of Risk: Passage of risk to buyers at delivery moment.
Trip Time Charter Back: Short charter granted to sellers post sale, valued in deal terms.
Tsuneishi Shipbuilding: Japanese yard at Fukuyama, bulk carrier specialist.

U

UK Ship Register: UK national flag register administered by MCA.
Ultimate Beneficial Owner (UBO): Natural person ultimately owning the buying or selling entity.
UN Security Council Sanctions Committees: Bodies administering UN designations.
Underwater Inspection: Diver survey of hull, often substitute for drydocking.
Univan Ship Management: Hong Kong manager, merged into Anglo-Eastern in 2015.

V

V.Group: Parent of V.Ships, world's largest third-party ship manager.
V.Ships: Operating brand of V.Group, multiple regional offices.
V.Ships Asia: Asian arm of V.Group based in Singapore.
Valuation Certificate: Written opinion of market value issued by recognized broker.
Vessels Value AIS Trade Score: Trading activity metric used in VV valuation models.
VesselsValue (VV): London headquartered automated vessel valuation platform.

W

Warranty of Authority: Broker's implicit warranty that principal is bound.
Wells Fargo: US bank used as escrow agent in S&P transactions.
Wilhelmsen Ship Management: Norwegian group third-party manager based in Kuala Lumpur.
With Employment: Valuation including value of attached charter.
Without Recourse: Sale or assignment without seller liability for buyer's later losses.
Wuhu Shipyard: Chinese yard, part of CSSC group.

X

X-Ray Examination: Non-destructive testing of welds, sometimes required at delivery.

Y

Yangzijiang Shipbuilding: Chinese private shipbuilder listed in Singapore.
Yard Number: Hull number assigned by builder at keel laying.

Z

Zero-Coupon Bond: Discount instrument occasionally used in ship finance structures.
Zhonghua Shipbuilding: Shanghai yard merged into Hudong-Zhonghua under CSSC.