Glossary of Shipping Terms

Aframax - A size/type of tanker, originally 79,999mt deadweight, now registered

at 80-120,000mt deadweight. A clean product-carrying Aframax can be referred
to as an LR2.
Ballast - Sea or dock water filled into dedicated tanks to ensure that a ship is
stable when there is no cargo loaded on board. Some ship types, such as
container ships, regularly carry ballast when loaded to improve stability.
Bareboat Charter - A lease under which the charterer is responsible for all
operational matters which include crewing, insurance and maintenance of the
vessel.
Barge Carrier Ship designed to carry either barges or containers exclusively,
or some variable number of barges and containers simultaneously.
Barrel (bbl) - A volumetric unit of measurement equal to 42 US gallons. There
are 6.2898 barrels in one cubic metre. (NB: that oil tankers do not carry oil in
barrels (although ships once did in the 19th century): the term is used to define
the volume only.)
Beam - The width of a vessel at its widest part.
Bill of Lading - A document issued by the master of a ship upon completion of
loading to the shipper which acts as receipt for and description of the goods, title
to the goods, and evidence of a contract of affreightment. The rightful receiver
of the cargo presents the bill of lading back to the master at the discharge port
to claim his goods.
Bulk cargo - Either dry of liquid commodity cargo carried unpackaged and in
large quantities. The dry cargoes are loaded into the holds of a bulk carrier
through the open hatch covers and discharged usually using shore equipment,
although ships below panama size are normally fitted with cranes for loading and
discharging cargo. Tankers load liquid cargoes thought on board pipelines into
tanks by shore pumps. Discharge is carried out using ship board cargo pumps.
Bunkers - The term for the fuel used by ships. The original steam ships used
coal but modern ships use oil of various grades in their engines and boilers.
Capesize Bulk Carriers - Bulk Carriers of 100.000 - 200.000 DWT which are too
large to navigate the Panama Canal. a.k.a. Capers
Charter Party A contract to charter a vessel. There are 3 main types: a
bareboat charter party, a timecharter party, and a voyage charter party. Various
standard forms are used and amended in each case by negotiation.

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Charter rate - A rate of hire agreed upon between the owner of a vessel and the
person wanting to use the vessel (the 'charterer').
Charterer - A company which hires (charters) a ship either for a specific voyage,
or for a period of time.
Classification Society - An independent organisation responsible for enforcing
rules pertaining to the building, operating and maintaining of vessels. These
include Lloyds Register (LR), American Bureau of Shipping (ABS) and Det Norske
VERITAS (DNV).
Coating - Cargo tanks, especially in product tankers are often coated with paint
to assist in cleaning from one cargo to the next. The paint coating will often be
epoxy based. Ballast tanks are coated in order to protect them from the risk of
corrosion.
Combined carriers, or combination carriers - Ships designed to be able to
carry oil cargoes or dry cargoes such as iron ore or grain, in the hope that the
vessel can maximise earnings by swapping between wet and dry cargoes and
eliminate some of the time spent in ballast. (NB: A vessel carrying (laden)
with alternates cargoes, and does not carry both oil and dry cargo at the same
time.
Contract of Affreightment - A contract between a cargo shipper and carrier for
the transport of multiple cargoes over a period of time.
Contracts are
individually negotiated and usually include cargo description, quantities per
shipment/per total shipment, load and discharge ports, freight rates and duration
of the contract.
Container ships - Cargo ships that carry all of their load in containers. The
ships are normally fitted with cell guides for ease of stowage. It is unusual for a
containership to carry anything other than boxes.
Clean Petroleum Products (CPP)- Liquid products refined from crude oil,
whose colour is less than or equal to 2.5 on the National Petroleum Association
scale. CPPs include Naphtha, Jet fuel, Gasoline, and Diesel/Gasoil.
Cubic Capacity For tankers the volume of the cargo tanks (of a tanker) or
holds (of a bulker), are usually measured in cubic metres, and sometimes in
barrels. A modern handymax tanker will have a cubic of about 50,000cbm,
which is the equivalent of just under 315,000bbls.
Demurrage - Amounts paid by charterers to the owners of a vessel under a
voyage charter for time used for charterers business in port, over and above the
time allowed for in the Charter Party. Demurrage payments are defied as agreed
damages for detention.

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Displacement tonnage - The mass of sea water displaced by a ship.

This
includes the weight of the ships structure and all cargo, ballast bunkers and
stores on board at that time.
Document of Compliance (DOC.)- This is a certificate issued to the operating
company to attest to its compliance to the ISM (International Safety
Management) rules.
Double Hull - A design of ship which has double sides and a double bottom. The
spaces created in the double sides and bottom are used for ballast, and provide
a protective distance between the cargo tanks and the sea.
Double Sides - A layout with cargo spaces along the centre of the vessel, with
separate ballast tanks along the sides.
Dirty Petroleum Products (DPP)- Liquid products refined from crude oil,
whose colour is darker than 2.5 on the National Petroleum Association scale.
DPPs will often require heating during the voyage as their viscosity or waxiness
would make discharge difficult at ambient temperature. DPPs include Fuel oil,
Low Sulfur Waxy Residue (LSWR) and Carbon Black Feedstock (CBFS).
Draft - The depth of the vessel below the waterline, which varies depending on
the amount of cargo (or ballast) on board, and the density of the water the
vessel is lying in. A fully laden 45,000mt dwt tanker will have a full summer salt
water waterline of around 12m.
Drydock, or d/d - Periodically all vessels must enter a drydock as part of the
vessels maintenance procedures and survey requirements to allow for various
inspections and maintenance work. This will usually be conducted every 2.5
years although some more modern vessels are designed to go 5 years between
drydocking.
Dunnage Is used to secure items of cargo which may either slide or tip over
depending upon their shape and size, centre of gravity and friction between the
cargo and the deck/hold. Dunnage is made of various materials used to protect,
separate and support items of cargo such as timber, paper, polythene sheeting,
air bags, poles and woven mats.
Deadweight (DWT) - The cargo carrying capacity of a vessel, in metric tonnes,
plus the weight of bunkers, stores, fresh water etc. This does not include the
weight of the ship.
Forward Freight Agreement (FFA) Is a derivate contract where the Shipowner
or Charterer can hedge against future movements in freight or Time Charter
rates. This can be done directly with a counterpart (over-the-counter, OTC) or
through a Clearing House/Exchange (e.g. NOS and LCH).

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Fixing - This is the term used for concluding a charter party negotiation. A
charter party contract is often referred to as a fixture. A vessel whose next
employment has been arranged is referred to as fixed.
'Forty-foot Equivalent Unit (FEU) - A container measuring 40 x 8 x 8
Freight The price paid to a shipowner under a voyage charter in USD per ton
for the transportation of a cargo from one specific port to another. Freight often
applies to voyage charters. Gross Tonnage (GT, or GRT) Is a measurement of
volume including most of the confined spaces on board a vessel. The figure is
used as a basis for calculating port charges.
Handymax tanker - Tanker of about 30-50,000mt dwt.
Handysize tanker - Tanker of about 10-30,000mt dwt.
Handy-size Bulk Carriers - Bulk Carriers of about 25-40.000 dwt.
Heavy lift ship Vessel designed to move very large loads that cannot be
handled by normally equipped ships.
Hull Shell of body of a ship.
International Convention for the Safety of Life at Sea (SOLAS) - The main
provisions relate to life saving appliances and arrangements, radio
communications, safety of navigation, carriage of cargoes, including dangerous
cargoes, and specific requirements for certain types of ships, with details
requirements for equipment performance standards, construction standards,
operational procedures and certificate formats that evidence compliance.
International Maritime Organization (IMO) - Is a part of the UN where the
governments of shipping countries develop the legal requirements for the safe
and environmental operation of ships.
International Safety Management (ISM) - Part of the SOLAS convention that
provides the framework that the management system procedures implemented
by the individual operators of all ships must comply with to evidence a safe
standards of operation.
International Ship and Port Security Code (ISPS) Part of the SOLAS
Convention that provides a framework for the security procedures implemented
by individual operators of ships and the port facilities they call at.
Knot - A knot is one nautical mile per hour. Equals 1.15 statute miles or 1.85
kilometres per hour.
Laden - Loaded with cargo. The opposite is in ballast.
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Lashings Lashings are used to secure items of cargo will either slide or tip
over depending upon their shape and size, centre of gravity and friction between
the cargo and the deck/hold. There are many types of lashings used such as
chain, wire, shackles, rigging, screws, snatch blocks and slip hooks.
Laytime - Under a voyage charter, laytime is the amount of time in port granted
by the owners of the vessel under the terms of the charter party for the loading
and discharging of the cargo. The usual amount of total time allowed to
charterers in the tanker trades is 72 running hours. Any excess time used will be
paid for at an agreed rate. (See Demurrage)
Length Between Perpendiculars (LBP) The length between the forward
perpendicular (where the position on the hull at the summer loaded draft) and
the aft perpendicular (through the centre of the rudder stock).
Length overall (LOA)- The maximum length of a ship.
Lightweight The weight of the ship when completely empty. Usually
expressed in long tons (2240lbs). This figure is used when selling the ship for
scrap.
Liner Ship A ship which operates on a defined liner service. Container ships
and roros generally operate on liner services.
Liner Service A service operated to carry cargo between prescribed ports on
an advertised schedule.
LR1 and LR2 - Size of vessel equivalent to panamax and aframax, which see. LR
stands for Long Range. The ships normally, but not necessarily, trade with clean
petroleum products.
LT, or long ton - Imperial weight measurement equal to 2240lbs. A long ton is
1.6% heavier than a metric tonne.
Lumpsum - The alternative to fixing on a Worldscale basis for tanker voyages,
is to fix an agreed lumpsum freight amount for a specific voyage.
Maritime law Also called admiralty law, the law and regulations, including
international agreements and treaties, which exclusively govern activities at sea
or in any navigable waters.
MARPOL regulations - A series of internationally-ratified IMO regulations
pertaining to the marine environment and the prevention of pollution.
MR - Another term for a tanker of around 25-50,000mt dwt (see handymax). MR
stands for Medium Range.
MT, or metric tonne - A unit of weight, one tonne being 1000kg. Note that one
cubic metre of fresh water (SG 1.00) at 15C will weigh exactly one metric tonne.
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Multipurpose ship (MPP) A bulk ship able to offer a range of cargo carrying
capabilities.
Net tonnage (NT or NRT) - A measurement of volume which measures some of
the confined spaces on board a vessel, but less of them than the gross tonnage
figure. See SCNT and PCNT.
The Oil Companies International Maritime Forum (OCIMF) - is a body set
up by the major oil companies which, amongst other things, manages a ship
inspection and vetting system called SIRE.
Off-Hire - The period in which a ship is not available for service under a time
charter and, accordingly, for which the charterer is not required to pay the hire.
On Hire Day - Each day on which a vessel is in all respects capable of
performing its functions under the relevant Time Charter.
USA Oil Pollution Act of 1990 (OPA90) - Legislation passed in the USA which
details, amongst other things, certain regulations regarding the age and hull type
of tankers, and vessel operators liabilities and responsibilities with regard to the
US marine environment.
P&I club Mutual society which provides third party insurance to shipowner
members.
Panamax - The biggest vessel of any type able to transit the Panama Canal
(32.24m beam).
PCNT. Panama Canal Net Tonnage - A measurement based on volumes in
accordance with the Panama Canal Authority rules, which is used to calculate the
charges for transiting the Panama Canal.
Post Panamax Any ship which cannot transit the Panama Canal. The term is
most often used to describe containerships, but also bulkcarriers in the small
capesize category.
Products - Liquid products refined from crude oil, typically categorised as either
clean or dirty petroleum products (CPP or DPP).
Quiet Enjoyment The right to the undisturbed use of the ship by the lessee
(bareboat charterer).
Reefer Insulated cargo ship for carrying refrigerated food, either frozen or
chilled.
Ro-ro Roll-On Roll-Off vessels. These vessels are designed for wheeled or
tracked cargo that can self-load onboard. Cargo generally drives on to throughdecks via ramps, rather than being lifted through hatches.
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Scrapping The sale of a ship as scrap metal.

Segregated Ballast Tanks (SBT) - A system of ballast management on tankers
where the tanks, pipelines and pumps used on board the vessel are completely
separate from the cargo tanks, pipelines and pumps. SBT tanks are never used
for carrying cargo. This ensures that ballast water is always clean and can be
pumped out of the ship without risk of pollution to the sea. In modern tankers,
ballast spaces are protectively located on the outside of, or underneath, the
cargo tanks.
Suez Canal Net Tonnage (SCNT) - A measurement based on volumes in
accordance with the Suez Canal Authority rules, which is used to calculate the
charges for transiting the Suez Canal.
Segregations - Most tankers are able to carry more than one grade of crude oil
or products at the same time without contamination, because certain of the
tanks are grouped together with common lines and pumps which are segregated
from the other groups of tanks. A modern handymax can usually carry between 3
and 6 such cargoes.
Shipbroker An individual or company who acts as intermediary between
owner and charterer, or seller and buyer in a charter or sale, in return for a
percentage commission on the transaction.
Sister ships - Vessels built to the same design at the same shipyard,
approximately at the same time.
Slippage A term used to describe the difference between the stated or
recorded order-book for new ships in a given year and the actual or most likely
deliveries of new ships based upon later information.
Safety Management Certificate (SMC) - This is the certificate issued to a
vessel when she complies with the ISM (International Safety Management) rules.
Safety Management System (SMS) - A ship management system running in
accordance with the rules set out in the ISM (International Safety Management)
Rules.
Special survey (s/s) - A detailed inspection of a vessel by her Classification
Society which seeks to ensure the continued integrity of the vessel and her
machinery, in accordance with detailed regulations specific to the type of vessel.
Special surveys take place every 5 years.
Spot Charter - Charterers hire the vessel to perform a single trip, rather than
for a set period of time.

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Sub-Panamax Container ship with panamax dimensions . Normally

categorised between 2000-4000TEU.
Suezmax - Tanker with a deadweight of between about 125-170,000mt. The
term was originally derived from being the largest vessel able to transit the Suez
Canal fully laden. Suezmaxes are also sometimes referred to as Million Barrel
vessels as their cargo carrying capacity is around 1 million barrels.
Survey - An annual or periodical survey required by the Classification Society or
Flag State.
Twenty-foot Equivalent Unit (TEU) - This is the industry standard to measure
containers. A 20-foot container's dimensions are twenty feet long (6.09 meters),
8 feet wide (2.4 meters) and 8 feet six inches high (2.6 meters). These
dimensions have been set by the International Organization for Standardization
(ISO).
Time Charter The hire of a ship for any period of time. Such periods can vary
from the anticipated time necessary to perform a specific voyage (e.g. two
months), short term time charters; a number of voyages in succession (e.g. six to
nine months), medium term time charters; or a number of years, long term time
charters. Charterers hire the vessel, but the Shipowners remain responsible for
physical operation. Charterers pay a daily hire rate and purchase the bunkers
onboard on delivery. They do not have to provide their own crew, maintain the
vessel, or insure it, as these remain the responsibility of the Shipowners.
Time Charter rate - The daily hire the Charterer pays the Shipowner to use the
vessel over a specified period of time. It is usually paid every 15th day in
advance. The charterer also pays for fuel (bunkers) used.
Tonnage - There are many types of tonnage, all of which measure a vessel, but
according to different rules and indeed using different units. Gross and net
tonnages are in fact volumetric measurements based upon the enclosed spaces
in a vessel, whilst displacement, deadweight and lightweight tonnages are
measurements of mass. See each one for further definitions.
Tramp-ship Cargo carrying merchant vessel that has no fixed schedule or
definite route and fixes business in the open market.
Ultra Large Crude Carrier (ULCC) - Tanker with deadweight in excess of
320,000mt.
Voyage Charter - Contract of carriage in which the Charterer pays for cargo
carried in USD per ton. Under this type of charter, the Shipowner pays all the
operating costs of the vessel (including bunkers, canal and port charges,
pilotage, towage and ships agency), or as a lump sum irrespective of the
quantity loaded.

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Very Large Crude Carrier (VLCC) - Tanker with a deadweight between about
200-320,000mt.
Worldscale - The New Worldwide Tanker Nominal Freight Scale is a catalogue of
theoretical freight rates expressed as US dollars per ton for most of the
conceivable spot voyages in the tanker trade. The final rate agreed will be
determined as a percentage of the Worldscale rate, based upon a guaranteed
minimum quantity of cargo. This allows for charter parties to cover a wide range
of possible voyage options without the need to calculate and negotiate each one
separately.

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