Charter Terms Glossary

AA
Always Afloat

AAAA
Always Accessible Always Afloat

AAOSA
Always Afloat or Safe Aground. Condition for a vessel whilst in port

AARA
Amsterdam-Antwerp-Rotterdam Area

ABAFT
Toward the rear (stern) of the ship. Behind.

ABOARD
On or within the ship

ABOVE DECK
On the deck (not over it - see ALOFT)

ABT
About

ADCOM
Address Commission

ADDENDUM
Additional chartering terms at the end of a charter party


AFSPS
Arrival First Sea Pilot Station (Norway)


AFFREIGHTMENT
The hiring of a ship in whole or part


AFT
At or towards the stern or rear of a ship


AGROUND
Touching or fast to the bottom


AGW
All Going Well


AHL
Australian Hold Ladders


AIDS TO NAVIGATION
Artificial objects to supplement natural landmarks indicating safe and unsafe waters


ALOFT
Above the deck of the ship


AMIDSHIPS
In or toward the centre of the ship


ANCHORAGE
A place suitable for anchorage in relation to the wind, seas and bottom


ANTHAM
Antwerp-Hamburg Range


APS
Arrival Pilot Station


ARAG
Amsterdam-Rotterdam--Antwerp-Gent Range

ARBITRATION
Method of settling disputes which is usually binding on parties. A clause usually in a charter party


A/S
Alongside


ASBA
American Shipbrokers Association


ASPW
Any Safe Port in the World


ASTERN
In the back of the ship, opposite of ahead

ATDNSHINC
Any Time Day/Night Sundays and Holidays Included


ATHWARTSHIPS
At right angles to the centreline of the ship


ATUTC
Actual Times Used to Count

BACKLETTER
Where a seller/shipper issues a 'letter of indemnity' in favour of the carrier in exchange for a clean bill of lading


BAF
Bunker Adjustment Factor. A Fuel Surcharge expressed as a percentage added or subtracted from the freight amount, reflecting the movement in the market place price for bunkers.

BALLAST
Heavy weight, often sea water, necessary for the stability and safety of a ship which is not carrying cargo

BALLAST BONUS
Compensation for relatively long ballast voyage

BAREBOAT CHTR.
Bareboat Charter - Owners lease a specific ship and control its technical management and commercial operations only. Charterers take over all responsibility for the operation of the vessel and expenses for the duration.


BBB
Before Breaking Bulk. Refers to freight payments that must be received before discharge of a vessel commences


BDI
Both Dates Inclusive

BEAM
The maximum breadth or the greatest width of a ship

BELOW
Beneath the deck


BENDS
Both Ends (Load & Discharge Ports)


BI
Both Inclusive


BIMCO
The Baltic and International Maritime Council


BL1
Bale


BL2
(Bill of Lading) A document signed by the carrier which acts as a Contract of Affreightment, a receipt and evidence of title to the cargo.


BM
Beam


BN
Booking Note


BOB
Bunker on Board


BOFFER
Best Offer


BOW
The forward part of a ship


BROB
Bunkers Remaining on Board


BROKERAGE
Percentage of freight payable to broker (by owners in c/p's) or applicable to sale or purchase


BSS
Basis


BSS 1/1
Basis 1 Port to 1 Port


BT
Berth Terms


BULKHEAD
A vertical partition separating compartments


BUNDLING
This is the assembly of pieces of cargo, secured into one manageable unit. This is relevant to items such as Structural Steel, Handrails, Stairways etc. Whilst this is a very flexible description, a rule of thumb is to present cargo at a size easily handled by a large (20 tonne) fork lift.


BUOY
An anchored float used for marking a position on the water or a hazard or a shoal and for mooring


BWAD
Brackish Water Arrival Draft


CAF
Currency Adjustment Factor


CBM
Cubic Metres


CBFT (or CFT)
Cubic Feet


CFR (or C&F)
Cost and Freight


CHART
A map used by navigators


CHOPT
Charterers Option


CHTRS
Charterers


CIF
Cost, Insurance & Freight. Seller pays all these costs to a nominated port or place of discharge.


CKD
Completely knocked down


COA
Contract of Affreightment - Owners agree to accept a cost per revenue tonne for cargo carried on a specific number of voyages.


CIP
Carriage and Insurance paid to...


COACP
Contract of Affreightment Charter Party


COB
Closing of Business


COBLDN
Closing of Business London


COD
Cash On Delivery


COGSA
Carriage of Goods by Sea Act


CONGESTION
Port/berth delays


CONS
Consumption


C/SNEE
CONSIGNEE. Name of agent, company or person receiving consignment


COP
Custom Of Port


CP (or C/P)
Charter Party


CPD
Charterers Pay Dues


CPT
Carriage Paid To


CQD
Customary Quick Despatch


CR
Current Rate


CROB
Cargo Remaining on Board


CRN
Crane


CRT
Cargo Retention Clauses, introduced by charterers based on shortage of delivered cargo because of increased oil prices


CST
Centistoke


CTR
Container Fitted


DA
Disbursement Account


DAF
Deliver At Frontier


DAPS
Days all Purposes (Total days for loading & discharging)


DAMFORDET
Damages for Detention. Penalty if cargo is not ready when ship arrives for working (1st day of Laycan). This is not detention which is charged for ships time on delay. If the cargo is ready there is no DAMFORDET.


DDU
Delivered Duty unpaid.


DDP
Delivered Duty Paid.


DECK
A permanent covering over a compartment, hull or any part thereof


DEM
Demurrage (Quay Rent). Money paid by the shipper for the occupying port space beyond a specified "Free Time" period.


DEQ
Delivered Ex Quay


DES
Delivered Ex Ship


DESP
Despatch. Time saved, reward for quick turnaround- in dry cargo only


DET
Detention (See DAMFORDET)


DEV
Deviation. Vessel departure from specified voyage course


DFRT
Deadfreight. Space booked by shipper or charterer on a vessel but not used


DHDATSBE
Despatch Half Demurrage on All Time Saved Both Ends


DHDWTSBE
Despatch Half Demurrage on Working Time Saved Both Ends


DISCH
Discharge


DK
Deck


DLOSP
Dropping Last Outwards Sea Pilot (Norway)



DO
Diesel Oil



DOLSP
Dropping Off Last Sea Pilot (Norway)


DOP
Dropping Outward Pilot

DOT
Department of Transport


DNRCAOSLONL
Discountless and Non-Returnable Cargo and/or Ship Lost or Not Lost


DRAUGHT (or DRAFT)
Depth to which a ship is immersed in water. The depth varies according to the design of the ship and will be greater or lesser depending not only on the weight of the ship and everything on board, but also on the density of the water in which the ship is lying.
DRK
Derrick
DUNNAGE
Materials of various types, often timber or matting, placed among the cargo for separation, and hence protection from damage, for ventilation and, in the case of certain cargoes, to provide space in which the tynes of a fork lift truck may be inserted.
DWAT (or DWT)
Deadweight. Weight of cargo, stores and water, i.e. the difference between lightship and loaded displacement.
EBB
A receeding current
EC
East Coast


EIU
Even If Used


ELVENT
Electric Ventilation


ETA
Estimated Time of Arrival


ETC
Estimated Time of Completion


ETD
Estimated Time of Departure


ETS
Estimated Time of Sailing


EXW
Ex Works


FAC
Fast as can


FAS
Free Alongside Ship. Seller delivers goods to appropriate dock or terminal at port of embarkation and buyer covers costs and risks of loading


FCA
Free to Carrier. A modern equivalent of FAS used in intermodal transport where goods are transferred at a nominated forwarders premises, depot or terminal but not actually on board vessel.


FD (FDIS)
Free Discharge


FDD
Freight Demurrage Deadfreight


FDESP
Free Despatch
FDEDANRSAOCLONL
Freight Deemed Earned, Discountless And Non-Returnable (Refundable) Ship And Or Cargo Lost Or Not Lost


FENDER
A cushion, placed between ships, or between a ship and a pier, to prevent damage


FEU
Standard 40’ Container

FHEX
Fridays/Holidays Excluded

FHINC
Fridays/Holidays Included


FILO
Free In/Liner Out. Seafreight with which the shipper pays load costs and the carrier pays for discharge costs.

FIO
Free In/Out. Freight booked FIO includes the seafreight, but no loading/discharging costs, i.e. the charterer pays for cost of loading/discharging cargo.


FIOS
Free In/Out Stowed. As per FIO, but excludes stowage costs.

FIOST
Free In/Out and Trimmed. Charterer pays for cost of loading/discharging cargo, including stowage and trimming.


FIOT
Free In/Out and Trimmed. As per FIOS but includes trimming, e.g. the levelling of bulk cargoes. FIOS includes seafreight, but excludes loading/discharging and stowage costs.


FIT
Free In Trimmed

FIW
Free In Wagon


FIXING
Chartering a Vessel

FIXTURE
Conclusion of shipbrokers negotiations to charter a ship - an agreement

FLATPACKING
Cargo to be presented stacked and secured as an integral unit


FLT
Full Liner Terms

FMC
Federal Maritime Commission

FME
Force Majeure Excepted


FMS
Fathoms

FO1
For Orders

FO2
(IFO) Fuel Oil/Intermediate FO

FO3
Free Out

FOB
Free on Board. Seller sees the goods "over the ship’s rail" on to the ship which is arranged and paid for by the buyer


FOFFER
Firm Offer

FOG
For Our Guidance

FOQ
Free On Quay


FOR
Free On Rail


FORCE MAJEURE
Clause limiting responsibilities of the charterers, shippers and receivers of cargo.

FORE-AND-AFT
In a line parallel to the keel

FORWARD
Toward the bow of the ship

FOT
Free On Truck

FOW1
First Open Water

FOW2
Free On Wharf

FP
Free Pratique. Clearance by the Health Authorities

FR
First Refusal. First attempt at best offer that can be matched

FREEBOARD
The minimum vertical distance from the surface of the water to the gunwale

FRT
Freight. Money payable on delivery of cargo in a mercantile condition

FREE DESPATCH
If loading/discharging achieved sooner than agreed, there will be no freight money returned.

FREE EXINS
Free of any Extra Insurance (Owners)

FREE OUT
Free of discharge costs to owners. Includes seafreight only

FRUSTRATION
Charterers when cancelling agreement sometimes quote 'doctrine of frustration' i.e. vessel is lost, extensive delays.

FWAD
Fresh Water Arrival Draft

FWDD
Fresh Water Departure Draft

FYG
For Your Guidance

FYI
For Your Information

GA
General Average

GEAR
A general term for ropes, blocks, tackle and other equipment

GLS (GLESS)
Gearless

GNCN
Gencon (GENERAL CONDITIONS)

GN (or GR)
Grain (Capacity)

GO
Gas Oil

GP
Grain Capacity. Cubic capacity in 'grain'

GR
Geographical Rotation. Ports in order of calling

GRD
Geared

GRT
Gross Registered Tonnage

GSB
Good, Safe Berth

GSP
Good, Safe Port

GTEE
Guarantee

GUNWALE
The upper edge of a ship's sides

2H
Second Half

HA
Hatch

HAGUE RULES
Code of minimum conditions for the carriage of cargo under a Bill of Lading

HATCH
An opening in a ship's deck fitted with a watertight cover

HBF
Harmless Bulk Fertilizer

HDLTSBENDS
Half Despatch Lay Time Saved Both Ends

HDWTS
Half Despatch Working (or Weather) Time Saved

HHDW
Handy Heavy d.w. (Scrap)

HIRE
T/C Remuneration

HMS
Heavy Metal Scraps

HO
Hold

HOLD
A compartment below deck in a large vessel, used solely for carrying cargo

HULL
The main body of a ship

HW
High Water

ICW
Intercoastal Waterway : bays, rivers, and canals along the coasts (such as the Atlantic and Gulf of Mexico coasts), connected so that vessels may travel without going into the sea

IMDG
International Maritime Dangerous Goods Code

IMO
International Maritime Organisation

IN &/OR OVER
Goods carried below and/or on deck

IND
Indication

INTERMODAL
Carriage of a commodity by different modes of transport, i.e. sea, road, rail and air within a single journey

INCOTERMS
(Refer to comments in covering statement on front page A-F)

ITF
International Transport Workers Federation (Trade Unions). Complies on crewing

ITINERARY
Route.Schedule

IU
If Used

IUHTAUTC
If Used, Half Time Actually To Count

IWL
Institute Warranty Limits

KEEL
The centreline of a ship running fore and aft; the backbone of a vessel

KNOT
A measurement of speed equal to one nautical mile (6,076 feet) per hour

LANE METER
A method of measuring the space capacity of Ro/Ro ships whereby each unit of space (Linear Meter) is represented by an area of deck 1.0 meter in length x 2.0 meters in width

LASH
To hold goods in position by use of Ropes, Wires, Chains or Straps etc.

LAT
Latitude. The distance north or south of the equator measured and expressed in degrees.

LAYCAN
Laycan (Layday Cancelling Date)

LAYTIME
Time at Charterers disposal for purpose of loading/discharging

L/C
Letter of Credit

LCR
Lowest Current Rate

LEE
The side sheltered from the wind

LEEWARD
The direction away from the wind. Opposite of windward

LEEWAY
The sideways movement of the ship caused by either wind or current

LF
Load Factor. Percentage of cargo or passengers carries e.g. 4,000 tons carried on a vessel of 10,000 capacity has a load factor of 40%

LIEN
Retention of property until outstanding debt is paid

LNG
Liquefied Natural Gas

LOA
Length Overall of the vessel

LOAD LINE
SEE PLIMSOLL LINE

LOF
Lloyds Open Form

LOG
A record of courses or operation. Also, a device to measure speed

LOI
Letter of Indemnity

LONGITUDE
The distance in degrees east or west of the meridian at Greenwich, England

LOW
Last Open Water

LS (or LUMPS)
Lumpsum Freight. Money paid to Shipper for a charter of a ship (or portion) up to stated limit irrespective of quantity of cargo

LSD
Lashed Secured Dunnaged

LT1
Liner Terms

LT2
Long Ton = 1,016.05 kilogram (2,240 lbs)

LTHH
Liner Terms Hook/Hook

LW
Low Water

LYCN
Laycan (Layday Cancelling Date)

MANIFEST
Inventory of cargo on board

MB
Merchant Broker

MDO (DO)
Marine Diesel Oil

MIDSHIP
Approximately in the location equally distant from the bow and stern

MIN/MAX
Minimum/Maximum (cargo quantity)

MOA
Memorandum of Agreement

MOLCHOPT
More or Less Charterers Option

MOLOO
More or Less Owners Option

MOORING
An arrangement for securing a ship to a mooring buoy or pier

MT
Mertic Tonne (i.e. 1,000 kilos)

M/V
Motor Vessel / Merchant Vessel

NAABSA
Not Always Afloat But Safely Aground

NM
Nautical Mile. One minute of latitude; approximately 6,076 feet - about 1/8 longer than the statute mile of 5,280 feet

NAVIGATION
The art and science of conducting a ship safely from one point to another

NCB
National Cargo Bureau

NESTING
Implies that cargo is presented stacked in the contour of similarly shaped cargo, it may be likened to a stack of plates. This is particularly relevant in the presentation of tankage strakes for transport

NON-REVERSIBLE
(Detention). If loading completed sooner than expected, then saved days will not be added to discharge time allowed.

NOR
Notice of Readiness

NRT
Net Restricted Tonnage

NYPE
New York Produce Exchange

OO
Owners Option

OBO
Ore/Bulk/Oil Vessel

OSH
Open Shelter Deck

OVERBOARD
Over the side or out of the ship

OWS
Owners

P&I
Protection and Indemnity Insurance

PASTUS
Past Us

PC
Period of Charter

PCGO
Part Cargo

PCT
Percent

PDPR
Per Day Pro Rata

PERDIEM
By the Day

PER SE
By Itself

PHPD
Per Hatch Per Day

PLIMSOLL MARK
PLIMSOLL LINE
LOAD LINE
An internationally recognised line painted on the side of merchant ships. When a ship is loaded, the water level is not supposed to go above the line. Water can reach different parts of the line as its temperature and saltiness varies with the season and location. From where Plimsoll Shipping derived its name.

PORT
The left side of a ship looking forward. A harbour.

PRATIQUE
Licence or permission to use a port

PREAMBLE
Introduction to a charter party

PROFORMA
Estimated Account

PUS
Plus Us

PWWD
Per Weather Working Day

RCVR
Receiver

RECAP
Recapitulation of the terms and conditions agreed

REVERSIBLE
(Detention). If loading completed sooner than expected at load port, then days saved can be added to discharge operations.

ROB
Remaining On Board

RT
Revenue Tonne (i.e. 1.0 metric tonne or 1.0 cubic meter, whichever greater). The overall RT is calculated on a line by line basis of the Packing List using the largest amount. The overall freight liability is calculated on the total RT amount, multiplied by the freight rate

SATPM
Saturday P.M.

SB
Safe Berth

SD (or SID)
Single Decker

SEAFREIGHT
Costs charged for transporting goods over the sea. This does not cover haulage or loading/discharging costs but the sea transport only

SEAWORTHINESS
Statement of condition of the vessel (valid certificates, fully equipped and manned etc.)

SELFD
Self Discharging

SEMI-TRAILERS
Are usually 12.0 meter flat bed road trailers

SF
Stowage Factor. Cubic space (measurement tonne) occupied by one tonne (2,240 lbs/1,000 kgs) of cargo

SHINC
Sundays/Holidays Included

SHEX
Sundays/Holidays Excluded

SKIDS
Are bearers (timber or steel) positioned under the cargo to enable forklift handling at port, and for ease of rigging and lashing on board ship.

SN
Satellite Navigation - A form of position finding using radio transmissions from satellites with sophisticated on-board automatic equipment

SOC
Shipper Owned Container

SOF
Statement of Facts

SP
Safe Port

SPIDERING
Is the strengthening of circular tanks for transport, this prevents the tanks from becoming warped. The tanks are strengthened with steel or wood crossbeams giving a "spider" appearance

SRBL
Signing and Releasing Bill of Lading

SSHEX
Saturdays, Sundays, Holidays Excluded

SSHINC (or SATSHINC)
Saturdays, Sundays, Holidays Included

STABILITY
It is paramount that a vessel is stable in all aspects at all times. When cargo is loaded/discharged, the stability is monitored by a computer, which takes into account the weight and position of cargo within the vessel

STARBOARD
Right side of a ship when facing the front or forward end

STEM
Subject to Enough Merchandise (Availability of cargo). Also, the forward most part of the bow

STERN
The aformost or after part of a ship

SUB
Subject (to). Depending upon as a condition

SUPERCARGO
Person employed by a ship owner, shipping company, charterer of a ship or shipper of goods to supervise cargo handling operations. Often called a port captain.

SWAD
Salt Water Arrival Draft

SWDD
Salt Water Departure Draft

THWARTSHIPS
At right angles to the centreline of the ship

TIDE
The periodic rise and fall of water level in the oceans

TIME BAR
Time after which legal claims will not be entered

TBN
To Be Named / To Be Nominated

TC
Time Charter - Owners agree to hire a particular ship for a set length of time and provide technical management, crewing etc.

TCP
Time Charter Party

TEU
Standard 20' Container

TOPSIDES
The sides of a ship between the waterline and the deck; sometimes referring to onto or above the deck

TRIM
Fore and aft balance of a ship

TTL
Total

TW
Tween Decker

USC
Unless Sooner Commenced

UU
Unless Used

UUIWCTAUTC
Unless Used In Which Case Time Actually Used To Count

VPD
Vessel Pays Dues

WATERLINE
A line painted on a hull which shows the point to which a ship sinks when it is properly trimmed

WAY
Movement of a ship through water such as headway, sternway or leeway

WCCON
Whether Customs Cleared Or Not

WIBON
Whether In Berth Or Not

WIFPON
Whether In Free Pratique Or Not

WINDWARD
Toward the direction from which the wind is coming

WIPON
Whether In Port Or Not

WLTOHC
Water Line-To-Hatch Coaming

WOG
Without Guarantee

WP
Weather Permitting. That time during which weather prevents working shall not count as laytime

WPD
Weather Permitting Day

WWD
Weather Working Day

WRIC
Wire Rods In Collis

WWR
When, Where Ready

WWWW
Wibon, Wccon, Wifpon, Wipon

YAR
York Antwerp Rules

YAW
To swing or steer off course, as when running with a quartering sea

Z
UTC = GMT