A

  • Arbitration – Method of settling disputes out of courts of law by means of arbitrators
  • Arbitration clause – Clause in a contract which stipulates that any dispute arising from the contract will be settled through arbitration
  • Arbitrator – Person designated to act as a private judge in a commercial dispute
  • Arrest of a ship – Detention of a ship by authority of a court of law
  • ATA – Actual time of arrival
  • ATD – Actual time of departure
  • ATS – Actual time of sailing

B

  • B/L – Bearer of a B/L – Person who remits a B/L to the Carrier at the place of discharge against delivery of the goods.
  • B/L – Bill of Lading – Document issued by an Ocean Carrier to the Shipper of the goods which serves as receipt of the goods on board, evidence of the contract of carriage, and document of title.
  • B/L – Claused B/L – B/L containing remarks on the condition of cargo or its packing noted by the Master at the time the goods are received on board. See unclean
  • B/L – Clean Bill of Lading – B/L free of remarks on the condition of cargo or its packing, thus indicating that the cargo has been received by the ship in apparent good order. Clean Bs/L are required by Banks for documentary credit purposes
  • B/L – Combined Bill of Lading – Bill of lading issued for a voyage involving at least two legs, where the issuer is deemed to take responsibility for the goods until delivery at final destination.
  • B/L – Non-negotiable B/L – Bill of lading that cannot be used to transfer title to the goods.
  • B/L – Notify party – Party who is to be notified by the ship’s agent of the arrival of goods at discharge port. Details of the notify party appear in a box on the B/L.
  • B/L – Original B/L – Bill of Lading which bears the original signature of the Master or ship’s Agent and is exchanged for the goods at the place of delivery.
  • B/L – Release of a B/L – Remittance to the Shipper of the original B/L (against payment of the freight in most cases).
  • B/L – Through Bill of Lading – Bill of lading issued for a voyage requiring on-carriage. It should be checked whether the issuer of the B/L takes responsibility for the full transport or whether he simply acts as Agent for the on-carriage.
  • B/L – Unclean Bill of Lading – B/L containing remarks on the condition of cargo or its packing noted by the Master at the time the goods are received on board. See claused B/L
  • BIMCO – Baltic and International Maritime Council – International Association of Shipowners whose object is to defend Shipowners’ interests – Bimco also develops & approves Charter Parties and other shipping documents for the use of the shipping industry.
  • Booking Note – B/N – Document containing the terms and conditions of the contract between a Shipper and a Shipping Line for the carriage of goods.
  • Breakbulk cargo – Cargo loaded and discharged from a ship one piece at a time by means of cranes or derricks – Also referred to as conventional cargo.
  • Bulk cargo – Homogeneous unpacked dry cargo

C

  • C/P – Back to back charter – Contract between a Charterer and a Sub-Charterer whose terms and conditions are identical to the terms and conditions of the contract between the Charterer and the Shipowner (Head Charter)
  • C/P – Charter (to) – To hire a ship from a Shipowner for a period of time or reserve cargo space of a ship for the carriage of goods.
  • C/P – Charterer – Operator who hires a ship from a Shipowner for a period of time or reserves cargo space of a ship for the carriage of goods.
  • C/P – Charterparty – Document containing all the terms and conditions of the contract between a Shipowner and a Charterer, for the hire of a ship or the space in a ship.
  • C/P – Disponent owner – Operator who controls the commercial operations of a ship – Often used as an equivalent to Time-Charterer.
  • C/P – FILO – Free in liner out – Freight rate which consists of the ocean carriage and the cost of handling cargo at discharge ports but excludes the cost of loading.
  • C/P – FIO – Free in and out – Freight rates which excludes the cost of handling cargo at loading and discharging ports and, if appropriate to the type of cargo, stowing, dunnaging, lashing, securing or trimming.
  • C/P – FIOS – Free in and out and stowed – Equivalent to FIO however specifying that the cost of stowage is not for the account of the Shipowner to avoid any ambiguity.
  • C/P – FIOST – Free in and out stowed and trimmed – Applies to bulk cargoes – Equivalent to FIO however specifying that the cost of stowage and trimming is not for the account of the Shipowner to avoid any ambiguity.
  • C/P – FIOT – Free in and out and trimmed – Applies to bulk cargoes – Equivalent to FIO however specifying that the cost of trimming is not for the account of the Shipowner to avoid any ambiguity.
  • C/P – FLT – Full Liner Terms – Freight rate which consists of the ocean carriage and the cost of handling cargo at loading and discharging ports according to the custom of these ports.
  • C/P – FO – Free out – Freight rate which excludes the costs of discharging the cargo from the ship’s holds.
  • C/P – Gross terms – Equivalent to Full Liner Terms.
  • C/P – Hire – Money paid by a Time-Charterer to a Shipowner for the hire of a ship.
  • C/P – LIFO – Liner in Free out – Freight includes the cost of loading but not discharging.
  • C/P – Nett terms – Equivalent to Free in and Out TermsC/P – Owner – Equivalent to Shipowner
  • C/P – Sub-Charterer – Operator who charters a ship from a party who is not the Owner but a Charterer.
  • C/P – Time Charter – Contract between a Shipwoner and a Charterer for the hire of a ship for a period of time, during which the Charterer assumes the commercial management of the ship.
  • C/P – to sub-let – Fact for a Charterer to charter a ship out to another party.
  • C/P – Voyage Charter – Contract between a Shipwoner and a Charterer for the hire of space in a ship for one voyage.
  • C/P -Demise Charter – Contract between a Shipwoner and a Charterer for the hire of a ship for a period of time during which the Shipowner provides only the ship and the Charterer assumes the effective management of the ship (nautical and commercial).
  • C/P Head-owner – Shipowner who actually owns the ship in a chain of charter agreements
  • CA – Charterer’s Agent – Nominated by the voyage Charterer in accordance with the terms of the Charter Party. Although nominated by the Charterer, the Agent is paid by the Shipowner and so becomes Ship’s Agent.
  • Cargo interests – Parties interested in the cargo such as Shipper, Receiver & Cargo insurers as opposed to Vessel’s interests (Shipowner, Carrier, P&I Club etc..). Is often used when discussing contractual obligations.
  • Cargo Manifest – Summary of cargo loaded on a ship.
  • Cargo Receipt – Document issued by a Shipowner to the Shipper of the goods, generally within a voyage Charter Party agreement, which serves as receipt of the goods on board and evidence of the contract of carriage, but not as document of title.
  • Cargo superintendent – In general, person employed by a Shipowner to advise on the most efficient and safest ditribution of cargo on board and supervise cargo handling. Equivalent, Supercargo – For meaning within WFP, see Superintendent (WFP)
  • Cargoworthiness – Fitness of a ship to carry a specific cargo
  • Carrier – Party who undertakes to transport the goods in a contract of carriage
  • Certificate of Compliance – Document issued by regulatory body certifying compliance with ISM Code.
  • Certificate of Origin – Document certifying the country of origin of goods which is normally issued or signed by a Chamber of Commerce or Embassy.
  • CIF – Cost Insurance Freight – Trading terms where the Seller is responsible for arranging/paying for the transport & insurance but where risks are transferred to the Buyer when the goods pass the ship’s rail at the port of loading. See Incoterms.
  • CIM – International convention on Carriage of Goods by Rail (Part of COTIF).
  • Closing Date – Last date on which export goods can be accepted for a nominated sailing.
  • CMR – Convention on the contract for the International Carriage of Goods by Road of 19 May 1956.
  • Conference – Organisation of a group of Shipping Lines operating in one trade who agree to operate a common tariff.
  • Consignee – Party to whom the goods are to be delivered at destination in a contract of carriage by sea.
  • Consignment – Goods which are placed in the care of a Carrier for delivery to a Consignee.
  • Constructive total loss – CTL – Loss or damage to goods or to a ship for which the costs of repair or recovery would exceed the value.
  • Container – C&D – Collection and Delivery – Carriage from/to Customer’s premises to/from Container Freight Station.
  • Container – Demurrage – Charge raised by the terminal for detaining FCL container/trailer at a CY for longer period than provided in Tariff. (Do not confuse with Detention nor Port Storage).
  • Container – Detention – Charge raised by the ocean carrier for detaining container/trailer at Customer’s premises for longer period than provided in Tariff. (Do not confuse with Demurrage).
  • Container – FCL – Full Container load – Arrangements whereby Shipper utilises all the space in a container which he packs himself.
  • Container – FCL/FCL – Term used to describe a container freight rate whereby the Shipper is responsible for the stuffing and the Receiver responsible for the unstuffing.
  • Container – FCL/LCL – Term used to describe a container freight rate whereby the Shipper is responsible for the stuffing and the Carrier is responsible for the unstuffing.
  • Container – FEU – Forty-Foot Equivalent Unit.
  • Container – Groupage – Consolidation of several LCL consignments into a container.
  • Container – Hub & Spoke – The way of describing modern containerised operations whereby large containerships call at a restricted number of major (hub) ports to or from whence containers are carried to/from minor ports by feeder
  • services (spokes).
  • Container – LCL/FCL – Term used to describe a container freight rate whereby the Carrier is responsible for the stuffing and the Receiver responsible for the unstuffing of the container.
  • Container – LCL/LCL – Term used to describe a container freight rate whereby the Carrier is responsible for the stuffing and unstuffing of the container.
  • Container – Stuffing/Stripping – The action of packing/unpacking a container.
  • Container – TEU – Twenty-foot Equivalent Unit
  • Container – THC – Terminal Handling Charge – A charge for handling FCLs at port terminals. Also known as a Container/Port Service Charge.
  • Container -LCL – Less than container load – A parcel of goods too small to fill a container which is grouped by the Carrier at a CFS with other compatible goods for the same destination.
  • Container Freight Station – CFS – Place where consignments are grouped together and stuffed into containers – Often used in Bs/L as an equivalent to LCL term.
  • Container Yard – CY – Place to which containers are delivered to the Carrier at loadport and to the Consignee at disport – Often used in Bs/L as an equivalent to FCL term.
  • CPA – Charterer’s Protecting Agent – Nominated by the voyage Charterer to protect its interest when Charter Party is fixed on Owner Agents basis. Unless agreed in the C/P, CPA fee is paid by the Charterer.
  • CT – Combined Transport – Carriage by more than one mode of transport against one contract of carriage.
  • CTD – Combined Transport Document – The CTO’s Bill of Lading.

D

  • Deliver a ship (to) – To place a time chartered ship at the disposal of a Charterer at the time and place agreed.
  • Deliver cargo (to) – To remit the cargo to the receiver upon completion of the contract of carriage.
  • Delivery – Act that marks the termination of the contract of carriage by the remittance of the goods by the Carrier, to the Receiver.
  • Delivery Order – A document authorising delivery to a nominated party of goods in the care of a third party. Can be issued by a Carrier on surrender of a Bill of Lading and then used by Merchant to transfer title by endorsement.
  • Demurrage – Amount of money paid to the Shipowner by the Charterer for failing to complete loading and/or discharging within the time allowed in the C/P.
  • Despatch (money) – Amount of money payable by the Shipowner to the Charterer for loading and/or discharging in less than the time allowed.
  • Documentary Credit – The basis of international trade by means of which payment is made to the Shipper against surrender of specified documents to a bank acting on behalf of Consignee.
  • Draught – Depht to which a ship is immersed in the water.
  • Draught survey (draft survey) – Method of survey used to determine the quantity of cargo on board a ship through ascertainment of the ship’s draughts prior to and after discharge – Mainly used for bulk cargoes.

E

  • Endorse a B/L (to) – To sign over a B/L to another party thus, transferring title to the goods to that party.
  • Endorsee – Party holding title to the goods as a result of endorsement and thus, entitled to take delivery on presentation of the original B/L.
  • ETA – Estimated time of arrival
  • ETC – Estimated time of completion
  • ETD – Estimated time of departure
  • ETR – Estimated time of readiness
  • ETS – Estimated time of sailing
  • Excepted peril – Specific circumstances which may justify that a Carrier be not held responsible for loss or damage to cargo.
  • Exception clause – Clause in a B/L or C/P which exonerates the Carrier from responsibility in certain named circumstances.
  • Exclusion of liability – Specific circumstances which may justify that a Carrier be not held responsible for loss or damage to cargo.
  • Export Licence – Governmental document authorising export of restricted goods.

F

  • Feeder Vessel – A short-sea vessel used to fetch and carry goods and containers to and from deep sea vessels.
  • FOB – Free On Board – A conventional/port-to-port only INCOTERM term of sale.
  • FOR / FOT – Free on rail or free on truck – Railway cargo delivery terms – Seller responsible for delivering the goods into the custody of the railway and, if agreed, for loading into the railcars – Costs and risks for the Buyer from that time.
  • Force majeure – In a contract, any unforeseen event beyond the control of either party and which neither party is able to overcome, that hinders, either temporarily or definitely, the performance of obligations and may justify the
  • postponement, interruption or terminatio
  • Forwarding agent – Forwarder, Freight forwarder – Persons responsible for exporting or importing arrangements on behalf of a Shipper or Receiver.
  • Free In Liner Out – Freight includes cost of discharge but not loading.
  • Free In Out + Stow – Shipper pays for loading, stowing and discharging.
  • Freight – The amount payable for the carriage of goods. Sometimes also used to describe the goods themselves which are better described as cargo in marine transportation.
  • Freinte – Minor inevitable transit loss due to the inherent characteristics of the cargo for which a Carrier may not be held liable – See also Wastage

G

  • G.A. – General Average – Deliberate sacrifice or expenditure incurred during a voyage for the common safety of the ship and the cargo which results in contributions of vessel’s and cargo’s interests at pro-rata of their interests, as adjusted as per international rules.
  • G/A – Average Bond – Undertaking by Merchant to pay G.A. contribution
  • G/A – Average Guarantee – Guarantee from Cargo Insurer that G.A. contribution will be paid

H

  • H&M – Hull and Machinery

I

  • ICC (Ins) – Institute Cargo Clauses – The International Underwriting Association standard clauses for cargo insurance.
  • Incoterms – Trading terms and set of rules for their interpretation published by the International Chamber of Commerce (ICC) – See below main characteristics – For more details, it should be referred to the ICC official rules 2000.
  • Incoterms – CFR – Cost & Freight – The Seller delivers when the goods pass the ship’s rail in the port of shipment – Freight paid by the Seller who also clears the goods for export – Risks and costs after the delivery are for the Buyer.
  • Incoterms – CIF – Cost, Insurance & Freight – The Seller delivers when the goods pass the ship’s rail in the port of shipment – Freight and Insurance paid by the Seller who also clears the goods for export – Risks and costs after the delivery are for the Buyer.
  • Incoterms – CIP – Carriage and Insurance Paid To – The Seller delivers the goods to the Carrier nominated by him, pays the cost of carriage & procures insurance against Buyer’s risks of loss during carriage.
  • Incoterms – CPT – Carriage Paid To – The Seller delivers the goods to the Carrier nominated by him and pays the cost of carriage, risks being for the Buyer.
  • Incoterms – DAF – Delivery at Frontier – The Seller delivers the goods when they are placed at the disposal of the Buyer not unloaded, cleared for export but nor for import at the named place at the frontier.
  • Incoterms – DDP – Delivery Duty Paid – The Seller delivers the goods to the Buyer cleared for import and not unloaded at the named place of destination.
  • Incoterms – DDU – Delivery Duty Unpaid – The Seller delivers the goods to the Buyer not cleared for import and not unloaded at the named place of destination.
  • Incoterms – DEQ – Delivery Ex Quay – The seller delivers when the goods are placed at the disposal of the buyer not cleared for import on the quay at the named port of destination – All costs and risks for the Seller until completion of discharge.
  • Incoterms – DES – Delivery Ex Ship – The Seller delivers when the goods are placed at the disposal of the Buyer on board the ship not cleared for import at the named place of destination – All costs and risks before discharging for the Seller.
  • Incoterms – EXW – Ex Works – The Seller delivers when he places the goods at the disposal of the Buyer at the Seller’s premises, not cleared not loaded.
  • Incoterms – FAS – Free Alongside Ship – The Seller delivers when the goods are placed alongside the vessel at the named port of shipment – The Buyer bears all costs and risks to the goods from that moment.
  • Incoterms – FCA – Free Carrier – The Seller delivers the goods cleared for export to the Carrier nominated by the Buyer at the named place.
  • Incoterms – FOB – Free On Board – The Seller delivers when the goods pass the ship’s rail at the named port of shipment – Buyer to bear all costs and risks from that point.
  • Inherent vice – Defect or inherent quality of the goods or their packing which leads to damage without accident or negligence. Carriers and Insurers are normaly not liable for damage due to inherent vice.
  • Insufficient packing – Failure of the packing to protect the goods while in transit. A proven case of insufficient packing may entitle the Carrier to exonerate from liability.

J

  • Joint survey – Inspection carried out by a Surveyor on behalf of two parties. By extension, inspection carried out by two or more Surveyors each of them being appointed by a party, to ascertain jointly the facts.

K

L

  • L/C – Letter of Credit – The document in which the terms of a Documentary Credit transaction are set out.
  • L/I – Letter of Indemnity – Sometimes used to allow Consignee to take delivery of goods without surrendering B/L which has been delayed or become lost.
  • Latent Defect – A defect not obvious from cursory inspection.
  • Laytime – Time allowed by the Shipowner to the Voyage Charterer in which to load an/or discharge the cargo.
  • Letter of Protest – Notification by the Receiver to the Carrier of any damage or loss found at delivery with a view to placing on him the burden of proving that he is not responsible.
  • Lien – Right to retain goods and documents against payment of charges etc. due but unpaid. Shipowners and Freight Forwarders may be entitled to exercise lien on cargo under certain conditions and circumstances.
  • Limitation of liability – Maximum amount of money payable by a carrier to a shipper or receiver for loss or damage to cargo under the contract of carriage.
  • Liner – Vessel plying a regular trade/defined route against a published sailing schedule.
  • Liner terms – see Full Liner Terms – Equivalent: Gross Terms – Freight includes the cost of loading onto and discharging from the vessel.
  • Lloyd’s Agents – Representative of the Lloyd’s of London in a port who provides survey and adjusting service to the marine insurance market.
  • Lloyd’s of London – Corporation of underwriters based in London with prominent role in the marine insurance market – Also renowned for its Agency and shipping intelligence network.
  • LO-LO – Lift-on/Lift-off – A containership onto which and from which containers are lifted by crane (as opposed to Ro-Ro).LOF – Lloyds Open Form – A standard form of salvage agreement.

M

  • Manifest – List of goods (or passengers) on a vessel.
  • Mate’s receipt – Document issued by the Chief Officer and remitted to the Shipper, stating the quantity and condition of the cargo loaded on board.
  • MTD – Multimodal Transport Document
  • MTO – Multimodal Transport Operator
  • Multimodal Transport – The UNCTAD preferred term for what we call Combined Transport.

N

O

  • On-carriage – Carriage of cargo beyond the port of discharge by another means of transport
  • Owners Agent – Ship’s Agent nominated and paid for by Shipowner in those cases when agreed to in the Charter Party.

P

  • P&I Club – Protection & Indemnity Club. Mutual associations of Shipowners providing liability cover and legal assistance to their members. Traditional Insurers do not cover, in general, Shipowners’ liability.
  • PA – Particular Average – Partial accidental loss or damage ( as opposed to Total Loss or General Average ).
  • Package limitation – Maximum amount of money payable per unit by a Carrier to a Shipper or Receiver for loss or damage to cargo under the contract of carriage.
  • Paramount clause – Clause in a contract of carriage which provides that the contract will be governed by certain sets of rules even though such rules would not apply to the carriage by the force of law (i.e.Hague-Visby Rules).
  • PHA – Port Health Authority
  • POA – Place of Acceptance
  • POD – Place of Delivery
  • POR – Place of Receipt
  • Principal Carrier – The Carrier issuing a CTD (regardless of whether or not goods are carried on his own, a third party’s or a consortium member’s vessel).
  • Protecting Agent – Agent appointed by a Shipowner or a Charterer to protect his interest and supervise the work carried out by the ship’s Agent when the latter is nominated by another party than him.

Q

R

  • Receiver – Party who receives the goods at destination in a contract of carriage
  • Redeliver a ship (to) – To return a time chartered ship to the Shipowner at the end of the period of charter.
  • Release of a B/L – Remittance to the Shipper of the original B/L (against payment of the freight in most cases).
  • Release of cargo – Delivery of the cargo to the consignee at the place of destination.
  • Remarks – Provisions inserted into a B/L stating the actual condition and quantity of goods at the time they are received on board.
  • RN – Release Note – Receipt signed by Customer acknowledging delivery of goods.
  • RO-RO – Roll On-Roll Off – A ferry type vessel onto which goods and containers can be driven, usually via a ramp.

S

  • Said to contain – S.T.C. – When inserted in a Bill of Lading, means that the Carrier is unaware of the quantity or nature of a packaged consignment (crate, bundles) and is relying on the description furnished by the Shipper – Also used for FCL containers.
  • Salvage – Assistance by 3rd Party independent of contract to vessel in distress.
  • Shipment – Equivalent to consignment
  • Shipper – Party who enters into a contract with a Carrier for the carriage of goods.
  • Ship’s agent – Representative of the Shipowner in a port, appointed either on a permanent or on a temporary basis.
  • Ship’s tackle (under) – Designates the point where liability for the goods passes from the Carrier to the Receiver under liner terms.
  • Shortlanded quantity – Quantity shortdelivered from a vessel in comparison with the B/L quantity.
  • Shortsupplied quantity – Quantity shortdelivered from a Supplier in comparison with the contracted quantity.
  • Shut-out – Goods not carried on intended vessel.
  • Slot – Space on board a vessel occupied by a container.
  • SOB – Shipped On Board – Endorsement on a Bill of Lading confirming loading on vessel
  • Statement of facts – SOF – Document prepared by the ship’s Agent which reconciles dates and times of arrival, commencement and completion of loading/discharging, quantities, hours worked, stoppages etc..
  • Straight Bill of Lading – A term for non-negotiable Bill of Lading.
  • Subrogation – Transfer of rights from an insured to the insurer further to compensation
  • Suit time – Period within which a claimant must bring lawsuit against another party. Failure to respect suit time results in the other party being discharged of liability.
  • Supercargo – see cargo superintendent
  • Superintendent (WFP) – Independent cargo Surveyor / expert appointed by WFP to assess the quantity and condition of goods delivered from transport contractors.
  • Survey – In the transportation disciplines, the process of conducting technical investigations
  • Surveyor – Independent expert appointed to conduct technical investigations.

T

  • T/S – Transhipment – Transfer from one vessel to another for oncarriage.
  • Tally – Physical count of units that are being loaded or discharged from a ship.
  • Tally (to) – Record the number of units that are loaded into or discharged from a ship.
  • Tally clerk – Person employed by a Shipowner, Shipper, Receiver or Stevedore to carry out a physical count of cargo being loaded or discharged from a ship.
  • Tally sheet – Written record of a tally at the time of loading and/or discharge.
  • Tariff – Terms, conditions and scale of charges.
  • Terminal – Port at which containers are loaded/unloaded onto/from container vessels.
  • Third Party – Any party other than the parties to a contract.
  • Time bar – Expiry of the period within which lawsuit must be brought by a claimant.
  • Transhipment – Transfer of cargo from one transport mode to another.
  • TTD – Through Transport Document – The TTO’s Bill of Lading.
  • TTO – Trough Transport Operator – A Carrier who contracts to carry goods (only part of which carriage he undertakes himself) on the basis that he is a principal whilst the goods are in his personal care and an Agent only whilst they are not.

U

  • UNCITRAL – United Nations Commission on International Trade and Law.
  • UNCTAD – United Nations Conference on Trade and Development.
  • Unseaworthiness – Unfitness of a ship for a particular voyage with a particular cargo.

V

  • Vessel’s interests – Parties interested in the ship such as shipowner, carrier, P&I Club, as opposed to cargo interests (Shipper, Receiver, Cargo Insurers). Is often used when discussing contractual obligations.

W

  • Wastage – Minor inevitable transit loss due to the inherent characteristics of the cargo for which a Carrier may not be held liable – See also Freinte
  • Waybill – Document issued by a Carrier to the Shipper of the goods which serves as receipt of the goods and evidence of the contract of carriage, but is not a document of title.

X

Y

Z