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.
Charter rate - A rate of hire agreed upon between the owner of a vessel and the person wanting to
use the vessel (the 'charterer').

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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.
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.

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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).
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.
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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.
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.
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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.
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.

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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 through-decks via ramps, rather than being lifted
through hatches.
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.
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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.
Sub-Panamax Container ship with panamax dimensions . Normally categorised between 20004000TEU.
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.

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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.
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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