Chartering Terms & Abbreviations
Aaosa
Always afloat or safe aground. The condition for a vessel whilst in port.
Addendum
Additional terms at the end of a charter party.
Arbitration
Method of settling disputes which is usually binding on parties. A clause usually in a charter party.
ASBA
American Shipbrokers Association
B/L
Bill of lading, receipt of goods shipped onboard signed by Master (or agent) who contracts to carry them, stating terms on which goods are carried.
B/N
Booking note
Backletter
Where a seller/shipper issues a ‘letter of indemnity’ in favour of the carrier in exchange for a clean bill of lading. May have only a limited value. Example: P & I problems.
BAF
Bunker adjustment factor
Bale Capacity
Cubic capacity of a vessels holds to carry packaged dry cargo such as bales/pallets.
Ballast Bonus
Compensation paid by Charterer for (relatively long) ballast voyage
Bareboat Charter
Vessel contract where charterers take over all responsibility for the operation of the vessel and expenses for a certain period of time.
BBB
Before breaking bulk. Refers to freight payments that must be received before discharge of a vessel commences.
Berth C/P
Term used in a voyage charter party, e.g. vessel shall proceed to Berth 2 at Falmouth.
Brokerage
Percentage of freight payable to broker (by owners in c/p’s) or applicable to sale or purchase.
C/P
Charter Party
Cargo Retention Clauses
Clauses introduced by charterers based on shortage of delivered cargo because of increased oil prices.
CBF
Cubic feet
CBM
Cubic metres
CIF
Cost, insurance, freight
COA
Contract of affreightment
COGSA
Carriage of Goods by Sea
Commission
See “Brokerage”
Conference
A scheduled liner service offered by owners on given routes on conditions agreed by members.
Congestions
Port/berth delays
Consignee
Name of agent, company or person receiving consignment
Deadfreight
Space booked by shipper or charterer on a vessel but not used
Deadweight/DWAT/DWCC
Vessel carrying capacity viz. fuel, water, crew based on 224O lbs per deadweight ton
Demurrage
Money payable to owner for delay for which owner is not responsible in loading/discharging after laytime expired.
Despatch
Time saved, reward for quick turnaround – in dry cargo only
Deviation
Vessel departure from specified voyage course
ETA
Estimated time of arrival
ETD
Estimated time of departure
FAC
Fast as can
FHEX
Fridays, holidays excluded
FIO
Free in/out
FIOST
Free in and out, stowed and trimmed
First Refusal
First attempt at best offer that can be matched
Fixture
Conclusion of shipbrokers negotiations to charter a ship – an agreement
FO
Fuel oil/free out
Force Majeure
Clause limiting responsibilities of charterers, shippers and receiver of cargo
Free Pratique
Clearance by the Health Authorities
Freight
Money payable on delivery of cargo in a mercantile condition.
Frustration
Charterers when cancelling agreement sometimes quote ‘doctrine of frustration’
i.e. vessel is lost, extensive delays.
GA
General Average
Geographical Rotation
Ports in order of calling
Grain Capacity
Cubic capacity in ‘grain”
Hague Rules
Code of minimum conditions for the carriage of cargo under a bill of lading
Hire
T/C remuneration
ITF
International Transport Workers Federation (Trade Unions)
Itinerary
Route/Schedule
IWL
Institute Warrant Limits
L/C
Letter of credit
LAY/CAN
Laydays/cancelling
Laytime
Time at charterers disposal for purpose of loading/discharging
Lien
Retention of property until outstanding dept is paid
LNG
Liquefied natural gas
Load Factor
Percentage of cargo or passengers carried e.g. 4000 tons carried on a vessel of 10000 capacity has a load factor of 40%
LOF
Lloyds open form Letter of indemnity
LT
Long Ton = 1016.05 kilogram
Lumpsum Freight
Money paid to shipper for charter of a ship (or portion) up to stated limit irrespective of quantity of cargo
Manifest
Inventory of cargo onboard
MOA
Memorandum of agreement
Mortgage
Loan issued against some security
NOR
Notice of readiness
OBO
Ore/bulk/oil vessel
P & I
Protection and indemnity insurance
Port CIP
Contracts with berth CIP. NOR can be given when within commercial limits of the port
Preamble
Introduction to a Charter Party
Proforma Acc
Estimated account
Recap
Recapitulation of the terms and conditions agreed
Reversible-time
Option for charterers to add together time allowed for loading & discharging relative to terms of a particular charter party
SB
Safe berth
Seaworthiness
Statement on the condition of the vessel . It has valid certificates, is fully equipped and manned
SHEX
Sundays, holidays excluded
SHINC
Sundays, holidays, included
SP
Safe port
ST
Short ton
STEM
Subject to enough cargo
Stowage Factor
Cubic space (measurement tons occupied by one tonne (2240 lbs or 1000 kgs of cargo))
Subject to
Depending upon as a condition
T/C
Time charter
T/C Equipment
Revenue per day
TBN
To be named/to be nominated
Time Bar
Time after which legal claims will not be entertained
Trading Limits
Maritime area usually specified by range of ports in which a vessel may operate
Weather Permitting
That time during which weather that prevents working shall not count as laytime
WIBON
Whether in berth or not
Wordscale
Index used for voyage charters in the tanker market; e.g. WS120
WW
Weather working
YAR 1974
York Antwerp Rules