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Terms&Definitions
>> Terms & Definitions
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 belie-
ve 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 responsibilityfor 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 stevedo-
ring 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 arran-
ging 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 dunna-
ge 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 mate-
rials, 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.
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>> Terms & Definitions
A
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.
Aclause 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
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>> Terms & Definitions
B
ABBREVIATION
MEANING
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
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>> Terms & Definitions
C
ABBREVIATION
MEANING
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
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>> Terms & Definitions
D
ABBREVIATION
MEANING
DA
Disbursement Account
DAF
Deliver At Frontier
DAPS
Days all Purposes (Total days for loading & discharging)
DAMFORDET
Damages for Detention. Penalty ifcargo 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.
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