Chartering Terms
     

FIOS (FREE IN, OUT, STOWED) :
It is most important to remember that the "Free" reference is viewed from the Ship Owners point of view - not the Shipper’s. Some Shippers get caught out when they read the word "Free" as they incorrectly believe that it refers to them.

Freight rates quoted on a FIOS basis specifically exclude all aspects relating to cargo handling operations. The ship is only responsible for expenses arising as a result of the ship calling into the port, i.e. tugs, pilots and light dues etc. Another very important consideration when booking cargo on FIOS terms is that the ship does not bear any responsibility for the speed of loading or discharging.

Usually the rate agreed includes a fixed "free" period of time for loading/discharging operations, after which time a daily demurrage is incurred. Obviously this is of paramount importance where port congestion or stevedoring performance is uncertain. There are many overseas ports which fall into this category and particularly where vessel demurrage rates can vary significantly, depending on the size and type of ship nominated to undertake the particular project.

LINER TERMS - GENERAL STATEMENT :
Liner Terms is a very ambiguous statement and can be interpreted in a variety of ways in different ports of the world and by different Ship Owners/Agents. Personally we would prefer to clearly define the extent of responsibility when quoting on this basis.

LINER TERMS HOOK / HOOK :
Given that this is a notional point in chartering terms, this is best described as the Shipper/Receiver arranging for delivery/receival of cargo to/from directly under ships hook and the ship paying for the labour to stow the cargo in the vessels cargo holds, as well as on-board lashing & securing and provision of dunnage materials, and to discharge again over the ship’s side. Shore based stevedoring aspects remain the responsibility of the shipper/receiver, however, there are some Owners that may incorporate these costs into their LTHH rate. Once again, ask Owners to clearly define this aspect.

Wharfage charges/dues/taxes can be a contentious issue but are usually considered to be for the Shippers/Receivers account and there may also be many other statutory levies on cargo or freight that may apply. Many Shippers/Receivers are unaware of these additional costs and do not include them into their costing and consequently may be left with an unexpected considerable expense at the completion of a project.

FULL LINER TERMS :
This is somewhat a vaguer term given different port practices. However, it generally implies that the freight amount provided includes both shore based and on-board stevedoring, lashing/unlashing, dunnage materials, securing/unsecuring and all costs of presenting to/receiving the cargo from the ship’s side; with the shippers/receivers just bearing the cost of discharging from/reloading to the transport, along with the usual port charges/levies/taxes etc.

Frequently the terms are varied at different ends of the voyage i.e. FILO (Free In/Liner Out), LIFO (Liner In Free Out) or FIFO (Free In/Free Out) etc. To be absolutely sure of all liabilities, it is always advisable to request that terms clearly and concisely indicate what is/isn’t included in your particular contract - in layman’s terms.

ABBREVIATION MEANING

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.

BALE CAP.

Cubic capacity of a vessels holds to carry packaged dry cargo such as bales/pallets

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.

BUNKERS

Name given for vessels Fuel and Diesel Oil supplies (Originates from coal bunkers)

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
alt.
PLIMSOLL LINE
alt.
LOAD LINE

An internationally recognised line painted on the side of merchant ships. When a ship is loaded, the water level must not go above the line. Water can reach different parts of the line as its temperature and saltiness varies with the season and location.

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