When specifying payment choice, please be clear and completely define the payment instrument as presented in the following examples below:
Richards Bay Coal Terminal, Major coal exporting port in South Africa
Antwerp/Rotterdam/Amsterdam. Major coal importing ports in northwest Europe.
(a) the material (usually water in ballast tanks) used to stabilize a vessel when partially loaded or empty,
(b) In Ballast - term to describe vessel sailing empty to next loading port.
Abbreviation for 'both ends'. Used when any loading and discharging term for a vessel is the same for both loading and discharging operations.
Baltic Freight Index - an index reflecting a composite number of routes, issued on a daily basis.
Baltic International Freight Futures Exchange -exchange on which freight future contracts are traded and the BFI is published.
(1) receipt for cargo prepared by the shipper and signed by the carrier;
(2) 'document of title' to the cargo i.e. proof of ownership; and
(3) provides evidence of terms and conditions of the contract of carriage of cargo by sea.
The remuneration for brokers' time and effort in negotiating the Charter Party (qv); expressed as a % of freight or hire payment received by shipowner.
Bunkers Term for fuel used by a vessel.
Time Charters stipulate that charterer accepts & pays for all fuel on the vessel at port of delivery; on redelivery owner shall pay for any fuel remaining on board.
In a COA it is sometimes usual to link freight rate to market price of bunkers at time of fixing, in order to adjust freight rate in line with bunker price movements at time of each shipment.
Cost and Freight - method of selling cargo where seller pays for loading costs and ocean freight.
A ship of about 80,000 DWT. (A vessel which is too large to transit the Panama Canal and thus has to sail via Cape of Good Hope from Pacific to Atlantic and vice versa.)
Document containing details of the fixture of the chartered vessel. Standard form charter parties for various trades are normally used, but some charterers use private forms.
Cost, Insurance and Freight - method of selling cargo where seller pays for loading costs, ocean freight and insurance.
Contract of Affreightment - a Charter Party covering more than one voyage.
Freight payable on cargo space booked but not actually used.
Financial compensation paid by charterer to the vessel for delays after the laytime has expired at the load/discharge port.
Financial reward paid by the owner to the charterer if the load / discharge operations are completed in advance of expiry of laytime. Usually paid at half the demurrage rate.
Vertical distance between the waterline and the keel. Figures quoted refer to a fully-laden vessel.
Survey undertaken at the load/ discharge port to determine by means of draught measurement how much cargo is on board.
Deadweight Tonnes - deadweight capacity of vessel comprising cargo, bunker fuel, fresh water, stores etc.
Deadweight Cargo Capacity - the portion of the deadweight available for the carriage of the cargo.
Estimated Time of Arrival (of vessel).
Estimated Time of Departure (of vessel).
Estimated Time of Readiness
Free In and Out - confers the responsibility to the charterers (shippers / receivers) to arrange the stevedores and to load / discharge the cargo on their own account ie free of expense to vessel owners, who are still accountable for port charges
Free On Board - method of selling cargo excluding ocean freight and insurance, but including loading costs
Free On Board Trimmed - as for FOB, but including trimming of cargo after loading.
Circumstances beyond reasonable control of the party/parties.
Clean bill of health for ship and crew.
The money paid on a Voyage Charter by the charterer to the owner.
A ship without means on board for the loading/unloading of cargo.
Inexact term, but normally taken to mean a vessel of about 40-60,000 DWT.
In exact term, but normally taken to mean a vessel of about 10-40,000 DWT.
Money paid on a Time Charter by the charterer to the owner.
Laydays & Cancelling Date - the earliest and latest dates on which the vessel must be ready to load at the port or be delivered to the time charterer.
Specific time period (days) during which the vessel must arrive at the loading port ready for loading.
Time allowed for the vessel's cargo to be loaded/discharged without incurring demurrage.
Length Overall - total length of vessel aft to fore.
Document signed by Chief Officer acknowledging receipt of cargo on board a vessel.
More Or Less in Owner's Option (tonnage caveat).
Notice of Readiness - notice given by ship that it is ready to load/discharge its cargo.
Ore/Bulk/Oil Multi-purpose Carrier.
Outreach - total distance that a port's loading/ discharging equipment can reach out over a vessel.
Vessel of about 60-80,000 DWT. (Technically the maximum size vessel that can transit the Panama Canal - restriction of 32.2 M beam.)
Charges normally paid by shipowner to the port authorities for use of port facilities.
Saturdays, Sundays & Holidays Excluded.
Safe Berth - a berth, which the vessel can reach and depart from without being exposed to danger that is unavoidable by good seamanship. It is the responsibility of the charterrer to provide this.
Stowage Factor - used to determine whether a vessel's holds will be filled before the vessel reaches its maximum draught. The SF for coal, depending on type, is between 37 and 48 cubic feet per long ton.
Sundays & Holidays Included.
Sundays & Holidays Excluded.
Safe Port - as Safe Berth except relates to port.
Term for suitably sized vessel readily available for short-term charter, usually in vicinity of charterer's requirement.
Company engaged in providing loading/ discharging services for vessels.
Salt Water Arrival Draft.
Fixture whereby charterer hires vessel for a specified period; payment made on a daily basis and includes fuel used, port costs etc.
When vessel is stabilised by (a) levelling off cargo within each hold, and (b) stowing cargo throughout ship so that fore and aft drafts are practically the same.
Fixture whereby charterer hires vessel for single voyage or round trip; terms and conditions similar to Time Charter.
Time allowed in the charter party, after NOR tendered and before laytime commences. Usually quoted in hours.
Fixture whereby the charterer pays a rate per ton loaded or on a lump sum basis.
Weather Working Days - working days in which it is possible to load/discharge cargo without the interference of weather.
Upfront cash to exporters before shipment.
A Term of Sale where the seller pays the costs and freight necessary to bring the goods to the named port of destination, but the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered on board the vessel, is transferred from the seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the seller to clear the goods for export.
A Term of Sale where the seller has the same obligations as under the CFR but also has to procure marine insurance against the buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The CIF term requires the seller to clear the goods for export.
A Term of Sale which means the seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to clear the goods for export.
Consignment : Payments deferred until goods sold.
A Term of Sale which means the seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time the goods have been delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination, the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to clear the goods for export.
These terms of sale means the sellers fulfill their obligation to deliver when the goods have been made available, cleared for export, at the named point and placed at the frontier, but before the customs border of the adjoining country.
"Delivered Duty Paid" means that the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges of delivering the goods thereto, clear for importation. While the EXW term represents the minimum obligation for the seller, DDP represents the maximum.
A Term of Sale where the seller fulfills his obligation to deliver when the goods have been made available at the named place in the country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto (excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks caused by failure to clear the goods for in time.
These terms of sale means the DDU term has been fulfilled when the goods have been available to the buyer on the quay (wharf) at the named port of destination, cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges of delivering the goods thereto.
These terms of sale means where the seller fulfills his / her obligation to deliver when the goods have been made available to the buyer on board the ship, unclear for import at the named port of destination. The seller has to bear all the costs and risks involved in bringing the goods to the named port destination.
These terms of sale means the seller fulfills the obligation to deliver when he or she has made the goods available at his / her premises (i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed. The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired destination. This term thus represents the minimum obligation for the seller.
A Term of Sale that means the seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of loss of or damage to the goods from that moment.
A Term of Sale that means the seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer, the seller may choose, within the place or range stipulated, where the carrier should take the goods into their charge.
An International Term of Sale that means the seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the goods from that point. The FOB term requires the seller to clear the goods for export.
A letter issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank, its branches, or other associated banks or agencies.
Open Account: An unpaid credit order.
Telegraphic Transfer (T/T payment): Electronic transfers of funds through bank wire.
Notice: Explanation to these terms above is for reference only.