CHARTERING DEFINITIONS & TERMS

1. BERTH: It is a specific place within a port where the vessel is ready to load or
discharge, (to dock or anchor)
2. BROKER: It is one who acts as a link between two parties and helps in making an
agreement between them
3. CALL SIGN: Is a unique alphanumeric identity that belongs to the vessel and acts in the
same way as the registration number of a car. The Call Sign enables two vessels with
the same vessel name to be identified separately. All radio transmissions must be
individually identified by the call sign. Merchant and naval vessels are assigned call
signs by their national licensing authorities.
4. CARGO MANIFEST: It contains general information about what has been shipment,
and the name of the shipper/receiver.
5. CARGO PLAN / STOWAGE PLAN: It is the ship's plan that indicate how many tons will
be in each ship hold and their order in that holds, that shows how the cargo comes
distributed.
6. CHARTERER: Someone who wants to chart (rent) a ship, either to transport cargo or
passengers, is called a charterer. The cargo may or may not belong to the charterer.
The charterer may be transporting it on behalf of a different party
7. D: DAY: It means a period of twenty-four consecutive hours running from 00:00 hours
to 24:00 hours
8. DEMURRAGE (DEM): It means an agreed amount payable by the charterer to the
shipowner in respect of delay to the vessel beyond the laytime, for which the owner is
not responsible. Demurrage shall not be subject to laytime exceptions.
9. DESPATCH (DES): Dispatch in American English, is the inverse of demurrage, it means
an agreed amount payable by the shipowner to the charterer if the vessel completes
loading or discharging before the laytime has expired
10. FIXTURE NOTE: The fixture note signed by both parties is essentially a simple
chartering contract performed by both parties. After signing the fixture note, the
shipowner compiles the formal chartering contract according to the agreed contents,
and sends it to the lessee for examination and verification through the chartering
agent.
11. GANG: A group of stevedores, usually four to five members, with a supervisor assigned
to a hold or portion of the vessel being loaded or unloaded.
12. GENCON CP: It is the most usual charter party for every type of cargo. Some charters
and owners recommended specialized charter parties depending cargo to transport,
such as: SUGAR CP, COAL CP, etc
13. HOLIDAY: It means a day other than the normal weekly day(s) of rest, or part thereof,
when by local law or practice the relevant work during what would otherwise be
ordinary working hours is not normally carried out.
14. KNOT (kn): A measure of the speed of the vessel. 1 knot = 1 nautical mile per hour,
that is 1,85 km/h.
15. LAYDAYS: Refers to a period of specified days (e.g. “Jan 7/16”) during which
shipowners must present the vessel for loading
16. LAYCAN: The cancelling date is the final layday and the date beyond which, if the
chartered vessel has not been presented for loading, the charterers may reject her and
cancel the charter without penalty
17. LOAD/LOADING RATE / DISCH RATE: It is the minimum rate of loading and discharging
speed per day. It could be expressed as a total for any purpose (that includes loading +
discharging) or separated. Depends of the type of cargo, number of vessel hatches,
and loading equipment speed. It is usually expressed as a rate: “Per hatch per
day/hour”.
18. PORT: It is an area within which vessels load or unload cargo
19. REVERSIBLE LAYTIME: It means an option given to the charterer to add together the
time allowed for loading and discharging. Where the option is exercised the effect is
the same as a total time being specified to cover both operations.
20. SPOUT: Special tool/device used to load bulk goods into trucks, ships or trains in order
to minimize the loss of product due to dust moving upwards.
21. TIME LOST WAITING FOR BERTH TO COUNT AS LOADING/DISCHARGING OR AS
LAYTIME: It means that if no loading or discharging berth is available and the vessel is
unable to tender notice of readiness at the waiting-place then any time lost to the
vessel shall count as if laytime were running, or as time on demurrage if laytime has
expired.

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22. AA: ALWAYS ACCESSIBLE or REACHABLE ON HER ARRIVAL It means that the charterer
is responsible to have an available berth to provide to the vessel on its arrival at the
port
23. AAAA: ALWAYS ACCESIBLE ALWAYS AFLOAT: It means that the port/vessel will be
always accessible always afloat during the agreed charter party time. To avoid vessel
aground
24. ATUTC: It means that all time is used to count
25. BENDS: Both ends, both berths, both ports, both conditions
26. CP: CHARTERPARTY: Is a written contract between shipowner and charterer whereby a
ship is hired, and where all terms, conditions and exceptions are stated
27. DAPS: DAYS FOR ALL PURPOSES. Days allowed for both loading and discharging (Total
days), a sole time sheet will be drawn up for the whole
28. ETA: Estimated / Expected Time of Arrival
29. ETB: Estimated / Expected Time of Berthing
30. ETC: Estimated / Expected Time of Commencement/Completion
31. ETD: Estimated / Expected Time of Departure
32. FAWD: Fresh Water Arrival Draft
33. FOC: Flag of convenience. A ship registers in a country that offers incentives to ship
owners from other countries to enter their vessels in that particular register. Some
incentives often offered are little or no tax liability, no restrictions on the nationality of
crew, and low registration fees.
34. FI: (Free in) Freight does not include loading, without loading
35. FO: (Free out) Freight does not include discharging
36. FIO: (Free in and out): Freight includes only the transport, freight does not
involve/include loading at the origin port, nor does include unloading at the port of
destination
37. FIOS: Freight includes only the transport. Loading, discharging and stowing the cargo in
vessel hold(s) are free of risk, responsibility and cost to the carrier.
38. FIOST: (Free In Out Stowed and Trimmed): Freight equal to the FIOS but adding the
expenses for the moving of cargo in vessels hold(s) in order to achieve the necessary
balance for transportation.
39. FIOS LSD: (Free In Out Stowed Lashed Secured Dunnage): Is an extension of the FIOST,
adding charterer responsibility for lashing, securing and using proper dunnage in order
to insure loads safety in navigation. So, loading, discharging, stowage, cargo assurance
is not included in the freight. It is used for cargo in sacks and bulk cargo (wood, steels,
etc).
40. FILO: (Free In Liner Out): It does not include loading, but includes discharging.
41. LIFO: (Liner In Free Out): It includes loading, but it does not include discharging.
42. FISLO: (Free in and Stowed, Liner Out): It does not include loading and stowed, but
includes discharging
43. LT: LAYTIME: It means the period of time agreed between the parties during which the
shipowner will make and keep the vessel available for loading or discharging without
payment additional to the freight. Days allowed for cargo operations agreed in a
charter party i.e. October 10-20, 2002.
44. MOL: More Or Less, refers to a cargo size option - say, "10,000 tones, 5 per cent more
or less" - usually clarifying whose option to select the final cargo size
45. MOLOO: Short for More Or Less Owner´s (vessel) Option which means a margin which
the shipowner has for the amount of cargo a vessel should carry. I.e. "30,000 tons 5
per cent moloo" means that the vessel can load between 28,500 and 31,500 tons.
46. MOLCHOPT or MOLCO: More or less charterer´s option
47. MT: Metric Tonne: Unit of weight equal to 1000 kilograms
48. NOR: NOTICE OF READINESS: It means the notice to charterer, shipper, receiver, or
other person as required by the charter party that the vessel has arrived at the port or
berth, as the case maybe, and is ready to load or discharge. It is used to calculate the
Laytime
49. PCT: Percentage: A number or ratio expressed as a fraction of 100
50. PHPD: PER HATCH PER DAY: Shall mean that the laytime is to be calculated by
dividing, the quantity of cargo, by, the result of multiplying the agreed “daily rate“ per
hatch by the number of the vessel's hatch
51. POL: Port of loading
52. POD: Port of discharge
53. PWWD: PER “WEATHER WORKING DAY” (PWWD) or “WEATHER WORKING DAY OF 24
HOURS” or “WEATHER WORKING DAY OF 24 CONSECUTIVE HOURS”: It means a
working day of 24 consecutive hours except for any time when weather prevents the
loading or discharging of the vessel or would have prevented it, had work been in
progress.
54. SSWAD: Summer Salt/Sea Water Arrival Draft. This is a description of a vessel's
draught in salt water when arrives at a port where the water density is that of salt
water, that is 1025 kilograms per cubic meter.
55. SBSP: SAFE BERTH, SAFE PORTH. It means a port/berth which, during the relevant
period of time, the ship can reach, enter, remain at and depart from, always afloat,
without or with any abnormal occurrence, or danger (political, legal or physical), which
cannot be avoided by good navigation and seamanship.
56. SF: STOWAGE FACTOR: Indicates how many cubic meters of space one tone of a
particular type of cargo occupies in a hold of a cargo ship. It is calculated as the ratio of
 the stowage space required under normal conditions including the stowage losses
caused by the means of transportation and packaging, to the weight of the cargo
57. SHINC: It means that Sunday and Holiday are Included in calculating the laytime for
vessel chartering. Sometimes Fridays (F) and/or Saturday afternoon (SATPM) are also
included
58. SHEX: It means that Sunday and Holiday are Excluded in calculating the laytime for
vessel chartering. Sometimes Fridays (F) and/or Saturday afternoon (SATPM) are also
excluded
59. SHEX UU: It means that Sunday and Holiday are Excluded from the laytime, Unless
they are Used
60. SHEX EIU: It means that Sunday and Holiday are Excluded from the laytime, Even If
they are Used.
61. SOF: STATEMENT OF FACTS: Is a document for recording minute by minute that is
happening during loading or discharging operations (It includes periods of rain, rest
time of stevedores, etc.)
62. SWL: Safe Working Load: Used for shipboard lifting appliances and heavy lift cranes, is
the load that each complete crane assembly is approved lo lift on the cargo hook,
excluding the weight of the gear (hook, block, wire, etc)
63. WD: WORKING DAYS: It means days not expressly excluded from laytime
64. WHD: PER WORKING HATCH PER DAY” (WHD) or “PER WORKABLE HATCH PER DAY”. It
means that the laytime is to be calculated by dividing, the quantity of cargo in the hold
with the largest quantity, by the result of multiplying the agreed daily rate per working
or workable hatch by the number of hatches serving that hold.
65. WIBON/WIPON: WETHER IN BERTH/PORT OR NOT OR “BERTH OR NO BERTH”: It
means that if no charging or discharging berth is available on her arrival the vessel, on
reaching any usual waiting-place at or off the port, shall be entitled to tender notice of
readiness from it and laytime shall commence in accordance with the charter party.
Laytime or time on demurrage shall cease to count once the berth becomes available
and shall resume when the vessel is ready to load or discharge at the berth
66. WOG: Without guarantee. If a statement is made either during negotiations or in a
charterparty and it is qualified with the words this indicates that the party using the
qualification is not. prepared to be bound by the content of the statement.
67. WP: WEATHER PERMITTING”: It means any time when weather prevents the loading
or discharging of the vessel shall not count as laytime.