Page Comparison

ADCOMM

See Address Commission.

A fee paid by the owner to the charterer or the charterer's designee. It may be a rebate on the freight for hire or a discount for frequent business or for not using an agent.

Agent

A business entity handling details, such as paperwork and port expenses, for another shipping business entity.

API Gravity

A measure, from the American Petroleum Institute, of the relative density of petroleum liquids. A liquid with an API gravity greater than 10 floats on water. A liquid with a greater API gravity is less dense than and floats on one with a lesser API gravity.

American Tanker Rate Schedule; a publication of tanker Freight Rates from the Association of Ship Brokers and Agents. Each route has a flat rate based on a prototype vessel; counterparties agree on a percentage of the rate. Similar to World Scale.

Average method; the default Bunker Calculation Method. The weighted average bunker cost multiplied by the amount consumed in the voyage.

B/L

See Bill of Lading.

Back-To-Back Charter

A charter in which a disponent owner charters out a vessel on terms that are the same (except for rate and similar variables that he controls) as the terms under which the vessel was chartered to him.

Ballast Bonus

A lump sum payment for a vessel traveling in ballast to reach a loading port or a delivery port under a charter.

A daily measure of shipping costs for different routes and vessels of different sizes, used for trading and settling contracts. It is issued by the Baltic Exchange, and Trading clients can subscribe to a feed into Market Data.

In the Platform, barges are represented as vessels with Type Code Barge.

BBL

Abbreviation for barrel.

Beam

The width of a vessel at its widest point.

Beaufort Scale

A scale expressing wind force at sea. Good weather is typically defined as below 4 or 5; above that point, the data is ignored for calculating performance.

Berth

The specific place in a port where a vessel is to load and/or discharge.

A written receipt issued by a vessel's Master or a Shipping department that states that cargo has been placed on board. It includes the type of cargo, the amount, and the terms for shipping.

A synonym for an inland tug. In the Platform, boats are represented as vessels with Type Code Boat.

Broker

A business entity working between an owner and a charterer to arrange for a vessel to charter and/or cargo to ship.

Brokerage

See VIP - Glossary.

Bulk Cargo

A homogenous cargo, such as coal or grain, that is stowed loose, not in a container.

(Noun) The fuel used on a vessel, or the tank or compartment for storing fuel.
(Verb) To acquire fuel or load fuel into a vessel's bunkers for its own use (not as cargo). Also known as stem.

A method of valuing the fuel onboard a vessel, so that its cost can be allocated to the voyage in which it is used. It is selected in the Voyage Manager. See VIP - Glossary, VIP - Glossary, VIP - Glossary, and VIP - Glossary.

Bunker Surcharge

An Extra Freight Term; a way for an owner to make up for an increase in bunker prices.

See Charter Party.

Cargo

The goods being carried on a vessel.

A long-term sale contract on a Voyage Charter basis; the other side of a VC In COA.

A contract between a vessel owner and a charterer that lists all the terms of their agreement.

Charterer

A business entity getting control of a vessel from another party.

A business entity that clears and settles financial accounts.

COA

See Contract of Affreightment.

Combination Carrier

See Ore-Bulk-Oil Carrier.

A fee for services performed by a broker, also known as brokerage. It is paid by the owner because it is always assumed that business is being brought to the ship. Broker commission is usually 1.25%:

• For a Voyage Charter, of the freight and, in most cases, of deadfreight and demurrage.
• For a Time Charter, of the hire.

A contract for a grouping of cargoes. A long-term agreement or grouping mechanism for a series of cargo liftings in what might be different vessels. See Cargo COA and VC In COA.

Cubic Capacity

Each vessel has two cubic capacities:

• Grain cubic capacity: The maximum space available for bulk cargo, measured in cubic feet or cubic meters. Bulk cargo flows in between the frames and beams.
• Bale cubic capacity: The space available for bagged cargoes, or a general cargo of mixed commodities, measured in cubic feet. Hand-stowed cargo goes to the inside of the frames or to the underside of the beams, not to the skin of the ship.
  
  An example from an actual 25,650 TDW bulk carrier:
  Grain cubic: 1,135,900 in holds
  138,537in wing tanks
  1,274,432total
  Bale cubic:1,090,500 total

Cabling, victualling, and entertainment; see VIP - Glossary.

Payment for a Time Charter: an amount per day, as opposed to a Freight Rate. It covers crew and maintenance, but not fuel.

VIP - Glossary payable by a charterer to cover cargo loaded below the amount agreed upon in the contract. Also, an Extra Freight Term: A specific (usually full value) rate for cargo loaded below that agreed-upon amount.

The amount of mass or weight in tons that a ship can carry, including cargo, fuel, stores, fresh water, and crew.

Deadweight Cargo Capacity

The weight-carrying capacity of a vessel, expressed in long tons or metric tons, for a particular voyage, after allowance for fuel, water, stores, and crew, at a particular draft and water density.

Deadweight Scale

A scale on which are plotted the deadweight capacities corresponding to the various drafts of water between light and loaded displacements. This scale is usually included with the vessel's Capacity plan. Also known as Displacement Scale.

DEL

See VIP - Glossary.

The delivery of a vessel to a charterer at the beginning of a Time Charter.

DEL/REDEL

VIP - Glossary and redelivery.

See VIP - Glossary.

The money a voyage charterer must pay to the owner for a delay in loading and/or discharging cargo after laytime has expired.

A financial instrument, such as an FFA, whose value changes based on the value of underlying assets.

DES

See VIP - Glossary.

The money an owner must pay to a voyage charterer if the ship completes loading or discharging before the laytime has expired. Tankers do not do despatch.

Displacement

The weight of a ship and everything it contains, which is the same as the weight of the water it displaces.

A business entity that has control of a vessel's operation through charter or agreement, without owning the vessel.

The distance between the waterline and the bottom of a vessel. It is measured vertically to the lowest part of the hull, propellers, or other projecting point.

DWT

See VIP - Glossary.

Equipment

In the Platform, Equipment can refer to boats, barges, or a combination of both. See VIP - Glossary.

Estimate

See Voyage Estimate.

ETA

Estimated time of arrival.

ETC

Estimated time of completion.

ETD

Estimated time of departure.

ETR

Estimated time of readiness.

Extra charges related to freight, such as those for VIP - Glossary or VIP - Glossary/Additional Cargo charges.

FFA

See Freight Forward Agreement.

FHEX

A Laytime Term: Fridays and Holidays are Excepted (Excluded) from laytime.

FD

See Free Discharge.

First In First Out; a Bunker Calculation Method that treats bunkers as an asset and depletes the first asset before going on to the next. This is the most accurate method.

FIO

See Free In and Out.

FIOS

See Free In and Out Stowed.

FIOT

See Free In and Out Trimmed.

Fixture

The representation of the full contract that fixes a voyage and a cargo (Voyage Fixture for a Voyage Charter, or Time Charter In or Out Fixture); the completed negotiation that results in a charter party.

FOB

See Free On Board.

The charterer or receiver pays for the discharging of the cargo.

The charterer or shipper/receiver pays for the loading and discharging of the cargo.

The same as FIO, except that when nonbulk commodities (such as bagged cargo, generals, or scrap metal) are loaded, the additional cost of stowing is included.

The same as FIO, except that when grain, ore, coal, and other similar bulk commodities are carried, the trimming cost (the cost to level the cargo either by machinery or by hand) is included. Frequently now, the agreed trimming is spout trimming, which limits the loader's obligation to what can be done by the loading device itself. Any trimming beyond that would be for the vessel's account.

An export sales term under which the seller is responsible for placing the goods on board a vessel at the port of shipment named in the sales contract.

The amount of money payable to a vessel owner for the capacity/space for carrying cargo from one port to another under a Voyage Charter, Bill of Lading, booking note, or Contract of Affreightment.
Contrary to how it might be thought of outside the shipping industry, freight does not refer to the cargo.

A financial instrument used to buy or sell the price of freight on a forward basis. It is settled with cash, with the price based on the Baltic index. Owners and charterers buy forward to protect against a rising market and sell forward to protect against a falling market.

Payment for a Voyage Charter: an amount per unit of measure (MT, m3, BBL), as opposed to a Daily Rate.

Freight Scale Table

A Rate Table created in the Data Center for use on Cargo COAs and Cargoes.

Freight Type

The type of payment: F = Freight Rate, L = Lumpsum, W = World Scale, A = VIP - Glossary, D = Daily Rate, E = Equipment Daily Rate.

Fuel

The most common grades of fuel oil are IFO (intermediate fuel oil) 180 CST and IFO 380 CST, both used as propulsion fuel in motor ships; and Bunker C, mainly used on steam turbine-driven large-size tankers. Also, MDO (marine diesel oil), used for the auxiliaries of motor ships (or sometimes as propulsion fuel in smaller vessels).

Extra money given to the Master of the vessel in cash, and thus taken off the bill; also known as C/V/E.

A Time Charter contract for an owned vessel. Its Contract Type is Own Vessel.

The basic compensation to be paid to a vessel owner by a charterer for a Time Charter.

IFO

Intermediate fuel oil.

ILOHC

In lieu of hold cleaning.

The situation in which an option has some intrinsic value; the position is profitable.

• For a call option, the strike price is lower than the price of the underlying security.
• For a put option, the strike price is higher than the price of the underlying security.

A walkway or other structure that extends from shore out into a body of water.

Knot

A unit of speed: one nautical mile per hour.

Refers to a vessel with cargo on board, as opposed to in ballast.

Laycan

The window of arrival time; the Platform default is 15 days. Laycan also determines when you can cancel a contract: if the vessel is on time, but the cargo is not ready, the vessel can cancel and pick up a different load.

The period of time during which the owner must tender the ship for loading. The charterer is not obliged to accept Notice of Readiness before the commencement of laydays. The charterer may cancel the charter if the ship does not tender prior to the expiration of laydays (which is called the cancelling date).

The amount of time allowed at a port for loading and/or discharging.

Laytime Non-Reversible

When laytime is non-reversible, any despatch earned or demurrage incurred at the load or discharge port is payable there, and time saved at one port cannot be used to offset time lost at the other.

Laytime Reversible

An option given to the charterer to add together the time allowed for loading and discharging. The effect is the same as specifying a total time to cover both operations.

Laytime Saved

The time saved to the ship from the completion of loading/discharging to the expiration of laytime, excluding any notice time and periods excepted (excluded) from laytime.

A Charter Party term that describes when ports are open for loading and discharging.

Leg

The part of a voyage from one port to the next port.

Last In First Out; a Bunker Calculation Method that defers revenues, so you can maximize expenses currently and defray savings until later, for a tax advantage.

A voyage of a single cargo created from a COA.

Lighter

A general name for a broad, usually flat-bottomed barge, frequently used in loading or discharging a larger vessel at anchor.

The act of discharging cargo into a lighter or barge offshore, usually so that the vessel that has been lightered can get into a shallow berth.

A vessel with a published, relatively fixed schedule between load and discharge ports, as opposed to a tramp.

Liquefied natural gas.

A Time Charter Contract Type covering a long enough period of time that it requires special accounting, as opposed to a Trip TC or a Period TC.

LSF

Low sulfur fuel, required in certain ports/Emission Control Areas.

LSG

Low sulfur gas.

LSI

Low sulfur IFO.

LOA

Length overall of a vessel.

M³

Cubic meter.

Margin

The money a trader has on account with a clearinghouse as collateral.

To assign a value based on the current market price.

Master Contract

A Platform form that is used to organize and differentiate different types of COAs.

Max Lift Quantity

The maximum quantity a vessel can lift in the port in the voyage that has the most restrictive deadweight and draft limits. In the Platform, this amount can be calculated based on the density of the cargo, the vessel's deadweight, and the weight of bunkers and everything on the vessel.

MDO

Marine diesel oil.

MGO

Marine gas oil.

Min/Max

A minimum and maximum weight range. An owner might warrant that a vessel can carry cargo weight within this range; the charterer might agree to supply a cargo within this range.
Also used to describe a cargo quantity without tolerance, for example min/max 28,350 metric tons.

MOLOO

A commonly used Option Type meaning More or Less Owner's Option.

MT

Metric ton.

See Notice of Readiness.

A notice that the Master must present to the charterer stating that the vessel is ready to load or discharge. The following conditions must be met:

• The vessel must be at the place of loading or discharge as set forth in the charter party, or as near as it can safely get.
• The vessel must be fully prepared to load or to discharge immediately.
• Laydays commence from the moment the Notice of Readiness has been accepted by the charterer, unless (as is usually the case) stipulations to the contrary have been included in the charter. Under most grain Charter Parties, Notice of Readiness to load must be accompanied by a certificate issued by a competent surveyor stating that the vessel is ready to load in all holds.

OBQ

Onboard quantity.

OBO

See Ore-Bulk-Oil Carrier.

Cargo Tolerance Option Type, the option in the Charter Party that states the minimum/maximum load/discharge quantity for a cargo and/or which business entity has the right to declare it.
If the vessel cannot load the minimum, or if the cargo owner has less than the minimum, then deadfreight is due. If either party goes over the maximum, then overage is calculated on the freight, which is essentially a rebate for the additional cargo loaded.

A vessel designed to carry wet and/or dry cargoes, also known as a combination carrier. They were developed to be flexible enough to vary their cargo and to reduce ballast voyages.

The situation in which an option has no intrinsic value; the position is not profitable. It may have extrinsic, or time, value.

• For a call option, the strike price is higher than the price of the underlying security.
• For a put option, the strike price is lower than the price of the underlying security.

The delivered weight of the cargo, which is determined after discharge. Some minor loss of weight due to cargo sticking to the holds is inevitable for bulk cargoes.

See Owned Vessel or Own Voyage.

Cargo loaded above the specified amount. Also, an Extra Freight Term: A specific (lower) rate for cargo loaded above the specified amount.

A Voyage Charter Out.

A vessel you own, not a chartered vessel.

A Time Charter Contract Type for a vessel with ownership type OV. The contract is a Head Fixture.

A voyage you are running for yourself (OVOV or TCOV), not chartering out.

Owner

A business entity with control of a vessel.

Payment Type

Called Invoice Type on the Freight Invoice, these are the Payment Types:

• Normal (default): A regularly scheduled payment for a specific period of time, such as every 15 days.
• Special: A payment outside the regular schedule. Period-based costs, such as the Time Charter Hire, cannot be allocated this way. If the contract has no more Period payments remaining, the Invoice Type defaults to Special.
• Incremental: In the Platform, a payment for which a sort of reconciliation of accounts is performed. All amounts due since the beginning of the Time Charter contract are calculated, and all payments made are subtracted. The net difference then shows as the payment due. This payment method can be used either for every payment or once at the end of the Time Charter to ensure that the accounts are correct.

A Time Charter Contract Type covering more than one voyage, but not long enough to require special accounting, as opposed to a Trip TC or a Long-Term TC.

Pool

A number of vessels that owners group together for the purpose of negotiating better rates than they could individually, thus reducing their risk and exposure in the market.

Pooling Class

A category for vessels, based on deadweight and the number of holds, cranes, and hatches.

Port

A protected area within which ships are loaded with and/or discharged of cargo.

Port Charges

A general term that includes charges and dues of every nature assessed against the vessel or its cargo in a port. It usually includes harbor dues, tug boat charges, pilotage fees, custom house fees, consular fees, wharfage, dockage on the vessel, etc.

Quay

Pronounced "key," a wharf or jetty where vessels are loaded and unloaded.

Rebill

Expenses to be billed back to the vessel owner.

REDEL

See VIP - Glossary.

The return of a vessel to the owner at the end of a Time Charter.

Relet (RELT)

A voyage for which you Voyage Charter In a vessel and then Voyage Charter it Out. As an intermediary, you both pay and receive a Freight Rate.

A situation in which a cargo is loaded at a single port and offloaded at multiple discharge ports with varied rates. See Top-Off.

RO/RO

Roll on roll off; a type of vessel.

ROB

Remaining on board, usually referring to bunkers.

Settlement

Trades are marked to market every day, to give a better estimate of value, and the clearinghouse credits or debits the trader's account daily, until the settlement date, when the final payment is made.

SHEX

A frequently used Laytime Term: Sundays and Holidays are Excepted (Excluded) from laytime.

SHINC

A frequently used Laytime Term: Sundays and Holidays are Included in laytime.

See VIP - Glossary.

Spot (Vessel)

In both dry cargo and tanker chartering, a vessel that is immediately available for employment.

A Voyage Charter In.

Statement of Facts

A list of port activities and the times they occurred, agreed on by the ship's Master and the agent, that is used for the laytime calculation.

To take on bunkers.

Stowage Factor

The number of cubic feet actually occupied by one ton of a commodity, including an allowance for broken stowage. The stowage factor depends upon the type of goods being carried.

The date by which you would like to have a Demurrage Claim completed. In the Platform, it is calculated as Time Bar Date − Target Days.

Tramper Business Method; a Bunker Calculation Method in which you buy all the inventory at the beginning of the voyage and sell it all at the end, so you know the exact cost for the voyage. In the Platform, the consumption is calculated. You might use this method for a Time Charter In or Out that is delivered and redelivered with the same amount, or to override all values.

TBN

To be named (or nominated).

TC

See Time Charter.

TC Equiv or TCE

See Time Charter Equivalent.

Terms

Values, set up in the Data Center, that can be selected in fields throughout the Platform.

A charter for a period of time (like renting a car), as opposed to a Voyage Charter. A Time Charter contract specifies the length of time plus any optional days, daily rate, other expenses, delivery and redelivery dates, and how to handle bunkers on delivery and redelivery. See Time Charter In and Time Charter Out.

The cost of an equivalent Time Charter.

A Time Charter contract between a charterer (the Platform user) and an owner to use a vessel for a certain length of time.

A Time Charter contract between an owner (the Platform user) and a charterer to let out a vessel for a certain length of time.

A situation in which a cargo is loaded at multiple ports with varied rates and offloaded at a single discharge port. See Reverse Top-Off.

A combination of one boat and one or more barges that are working, at least temporarily, as a unit (formerly Inland Unit). Thus, it is a tow that goes on a voyage, not an individual boat or barge. In the Platform, tows are represented as vessels with Type Code Tow.

TPC/TPI

Tons per centimeter/inch. The number of tons loaded for each centimeter/inch the vessel goes down in the water.

A vessel with no regular schedule or itinerary whose owner sends it to find the most lucrative employment, as opposed to a liner.

A Time Charter Contract Type covering a very short time, usually one voyage, as opposed to a Period TC or a Long-Term TC.

Turn Time

Extra hours allowed for steaming into the berth after NOR is tendered and before laytime commences (used for bulkers, not for tankers).

Unwind

To take a trade back to a zero position, by selling an amount equivalent to what you bought or buying an amount equivalent to what you sold (for example, to buy & then sell December @ $100/day).

VC

See Voyage Charter.

A long-term purchase contract on a Voyage Charter basis; the other side of a Cargo COA.

VLCC

Very large crude (oil) carrier, about 160,000 tons deadweight.

VOY

Abbreviation for voyage.

A charter for a voyage (like taking a taxi), with payment at a certain Freight Rate, as opposed to a Time Charter. A Voyage Charter In is a Spot voyage; a Voyage Charter Out is an OVTO.

An estimate of the profit and loss for a voyage that includes as much information as possible about cargoes, ports, bunkers, income, and expenses.

A working day or part of a working day during which it is or would be possible to load or discharge cargo without interference from weather. If weather interference occurs, the period is excluded from laytime.

Working Day

A day on which work is normally done at a particular port.

A publication of tanker Freight Rates from the Worldscale Association. Each route has a yearly flat rate based on a standard vessel; counterparties agree on a percentage of the rate. Similar to VIP - Glossary.

WS

See World Scale.