TERMS AND DEFINITIONS

AI - "all inclusive". It means that price of transportation includes all the additional costs, forseen by the conditions of transportation. For instance, if we speak about freight on conditions of CY/CY it means that in the rate of load and upload, except freight, are also included all the relevant costs, such as BAF, CAF and etc.

Ballast Ballast
It is the material (usually water in ballast tanks), used for ship stabilization, which is partially loaded or is empty.

In ballast In ballast
It is term for ship characteristics, bounded empty in the next port of loading.

BAF – bunker adjustment factor. It is the additional cost for the basic freight rate, which value depends on the cost of fuel on the international market.

BFI (Baltic Freight Index) Baltic freight (cargo) index
It is the index which reflects the total number of routes, which are sending a day.

Bill of Lading (B/L) Consignment
The document, which has 3 functions:
- The acknowledgement (receipt) for a cargo, prepared by the cargo shipper and signed by the freight carrier;
- Shipping document for a cargo, for instance, ownership confirmation;
- Providing of terms and conditions confirmations for a cargo shipping by sea.

BOOKING NOTE – application for shipping. It is used for place and container reservation, the information pointed in the application is not considered to be the basis for consignment filling, after application submission the applicant assumes all the responsibilities to deliver cargo to the mentioned term.

Brokerage Brokerage commission
It is the reward for brokers for the time and services while negotiations by charter party (contract about ship affreightment), which is expressed in percents due to the size of freight payment, received by shipowner.

Bunker Clause Bunkering condition
Timecharters (contract about ship affreightment for a certain term), making conditions on freighter (a person who hires a ship) to pay for all the fuel on the board of the ship in the port of delivery, and the delivery man pays for any amount of fuel, left on the board.

Bunker Escalation/ De-escalation Clause Sliding-price cost for fuel
In СОА (contract of affreightment) usually the freight rate is connected with the market fuel cost at the moment of it’s fixation, in order to regulate the freight rate depending on fuel prices movement at the moment of shipping.

CAF – currency adjustment fee. It is the additional cost for the basic freight rate, which value depends on the currency changes.

CBM – cubic meter.

CFS – container freight station. It is the freight station were is carried out consolidation and load/unload in/from containers.

COC – carrier’s own container. The price of container usage is included in freight.

CONSIGNEE - a cargo receiver. A person to whom is given cargo at the place of destination.

CUT OFF TIME – control time of cargo delivery to the terminal and execution of the relevant documents for the haul.

CY – container yard .It is a storage place of containers before / after their further shipping. The condition of shipping while departure / arrival - means that the freight forwarder assumes all the responsibilities for shipping organization to / from CY; shipping cost includes the cost of transportation services to / from CY (freight load /unload from ship, placing in CY).

C @ F/ CFR (Cost and Freight) Cost and freight
It is a method of shipping, when the seller pays for load cost and sea freight.

Capesize Capesize
A ship with the capacity more than 80 000 t (usually 120-220 thousand tons). These ships are too large to pass through the Panama Canal and that is why they must double the Cape of Good Hope to pass from the Pacific ocean to the Atlantic ocean and inversely.

Charter Party Charter, charter-party
It is the contract about cargo freight. The document includes the detailed information about chartered ship. Usually used the standard forms of contracts for different kinds of trading. However, some freighters use individual forms of contracts.

CIF (Cost, Insurance and Freight) CIF
It is a method of sea shipping, when the seller pays for load cost, sea freight and insurance.

COA (Contract of Affreightment)
It is a contract of ship affreightment, including more than one haul.

Deadfreight Dead freight
It is payment for the chartered but not used place for a cargo on the ship.

Demurrage Payment of demurrage
It is the financial compensation paid by the freighter of the ship for detention after the expiration of parking time (period of time, specified by a charter-party for load and unload of the ship) at the port of loading or unloading.

Despatch Despatch
It is the financial reward, payed by the owner of the ship to the freighter, if the load and upload operations are over before the parking time.Usually it is half of the payment for the simple parking of the ship.

Draught Draught
It is the distance vertically between the draught line and keel of the ship while it’s full load.

Draught Survey Check of the draught
It’s dipping, executed at the port of loading or unloading, in order to determine the amount of the cargo on the board by means of ship draught measuring.

DWT (Deadweight Tons)
Ship capacity, including cargo, bunker fuel, sweet water, sea stores and etc.

DWCC (Deadweight Cargo Capacity)
It is the part of the freight-carring capacity of the ship, used for cargo shipping.

ETA (Estimated Time of Arrival (of vessel))
Estimation time of the ship arrival.

ETD (Estimated Time of Departure (of vessel))
Estimation time of the ship departure.

ETR (Estimated Time of Readiness (of vessel))
Estimation time of the ship readiness.

FIO (Free In and Out)
It is a state, when freighters (the sender and the receiver) pay for the costs which concern stevedores hiring and load and unload of the cargo.Shipowners pay for port fees.

FIOST (Free In and Out Stowed and Trimmed)
It the same state, as mentioned in FIO, but including shipowner exemption to pay the costs of cargo loading on the ship (in hold).

FOB (Free On Board ) FOB (Franko board)
It is a condition about the duty of the seller to deliver and load cargo on the board of the ship. The seller does not pay for sea freight and insurance.

FOBT (Free On Board Trimmed)
It is the same condition, as mentioned in FOB, but the seller is obligatory to only to load the cargo on the board of the ship, but also place the cargo on the ship (in hold).

Force Majeure Force Majeure, superior force
It is the invincible obstacle, unexpected circumstances, beyond the reasonable control of the party or the contract parties considering shipping.

Freight Freight
Money, which are paid by the freighter to the shipowner in accordance with charter-party for a haul.

FR «flat rack»- it is a type of container.

FREIGHT COLLECT - the freight is paid by the receiver.

FREIGHT PREPAID – the freight is received by the sender.

Gearless
It is a ship, which doesn’t have on the board any means for loading or uploading of the cargo.

GENERAL CARGO - it is a general cargo. This cargo can be re-accounted, in other words, the cargo packed in cargo container or as a piece freight, including: boxes, bags, barrels, bales, containers, etc.

GRI – it is the additional fee to the basic freight rate. It is set in accordance with the tariff policy of liner conference,and it is usually seasonal.

Handymax Handymax
Ships with a capacity of 40-60 thousand tons.

Handysize Handysize
Ships with a capacity of 10-40 thousand tons (usually 24-40 thousand tons).

Hire Rent, payment for rent
Money, paid by the freighter to the shipowner in accordance with time-charter(contract of ship hiring for time).

HC “high cube” – it is a container with an excessive capacity .

IN-BOND - “uncleared” (about goods)

Laycan (Laydays and Cancelling Day)
The earliest and the latest time when the ship should be ready for loading at the port or for the provision to the freighter in accordance with a contract for the time of hiring.

Laydays
It is time period (in days), during which the ship should arrive at the port of loading ready for loading.

Laytime
It is time, during which the ship can stay under the load or unload without paying for detention.

LOA
It is the full length of the ship from the bow to stern.

LCL –it is partial load of container. In one container there is a cargo of several senders to the address of several receivers.

LI - linear conditions in sailing. The conditions under which the freight forwarder provides the following services, the cost of which is included in the freight rate: removing of container from a vehicle (car, train), placing at the terminal (CY), loading on the ship.

LO -linear conditions while arriving. The conditions under which the freight forwarder provides the following services, the cost of which is included in the freight rate: unload from a ship, placing at the terminal (CY), loading on a vehicle (car, train).

MOTHER VESSEL - largesized linear ship, which serves ports with large cargo turnover.

MT- metric ton(1000 kg).

NOR (Notice of Readiness)
It is a message, which give a ship to tell that it is ready for loading or unloading a cargo.

OBO (Ore/Bulk/Oil Multi-Purpose Carrier)
Multi-purpose transport ship for transportation of ore, bulk cargo and oil.

Outreach
It is total length to which port loading and unloading equipment can be pulled over the ship.

OGC – an outsized cargo.

OT «OPEN TOP» - it is a type of container.

Panamax Panamax
Ships with capacity of 60-80 thousand tons. From the technical point of view the ships of maximum size, which can pass through the Panama Canal. Their length can’t be more than 32,2 m.

Port Costs/Disbursements Service costs of the ship
The costs which are usually paid to the administration of the port by the shipowner for usage of port equipment.

POD – port of unloading.

POL – port of loading.

RAMP «rampa» - it is load transfer device for cargo transfer from one kind of transport to another.

REPO - it is return of the empty container in the nearest drain of the carrier after unloading.

RF - refrigerator container

SATSHEX (Saturdays, Sundays and Holidays Excluded)
Excluding Saturdays, Sundays and holidays.

SB (Safe Berth) Safe Berth
It is berth, where the ship can be mooring or from the which the ship can be moored without danger. The responsibility for this assumes the freighter.

SHINC (Sundays and Holidays Included)
Including Sundays and Holidays

SHEX (Sundays and Holidays Excluded)
Excluding Sundays and holidays.

SP (Safe Port) Safe Port
It means the same that the safe berth, but in the attitude to the whole port.

Spot Spot
It is a term, which means a ship of the appropriate size, which is current for an immediate short-term freight, and usually is nearby the required place of the freighter.

Stevedore Stevedore
It is a company which is involved in the sphere of ship loading and uploading services.

SOC – it is container – ownership of the sender (client).

STUFFING «stuffing» - load of container.

Time Charter
Time charter, due to it the freighter hires the ship for a certain period of time. While this the payment is carried out in accordance with the number of days and includes fuel usage and service costs of the port.

Trimmed
Stable position of the ship, by means of:
a) Alignment of cargo in each hold;
b) Cargo distribution throughout the whole ship so that the draft of the ship at the bow and stern was equal.

Trip Time Charter
Charter due to which the freighter hires the ship for one haul or for a haul there and back. Charter conditions are the same, as in the charter for time.

Turn Time
It is a certain time, mentioned in the contract about ship freight, after the notice of ship readiness for loading (NOR) and before the time, during which the ship can stay under the load without paying for empty ship. Usually it is calculated in hours.

TEU – it is an equivalent of twenty-foot capacity of container.

THC – it is terminal cargo handling. Initially - any services of terminal cargo handling: loading / unloading from a ship moving in a stack, the nomination for works, etc.

TRANSHIPMENT - it is a change in the transit port of the shipping line for the delivery at/ from the port out of service line directly.

Voyage Charter
It is freight charter,by which the freighter pays the rate for the loaded ton or the lump sum of the freight (regardless of how many goods are actually loaded on the ship.)

UN CODE - UNO number.Four-figures number used to identify a substance or group of substances in accordance with the classification of dangerous goods, developed by the Committee of Experts of the Transportation of Dangerous Goods of the Economic and Social Council of the United Nations under the "Recommendations about the Transportation of Dangerous Goods."

WWD (Weather Working Days)
Working days during it is possible to carry out loading or unloading without the intervention of weather.

WAY BILL - it is a waybill. The contract of transportation, as well as a consignment - a document confirming the fact that the carrier takes the cargo for sea shipping and his duty is to transfer it to cargo receiver at the destination port, the sender is responsible for the correct information in the consignment in front of the carrier. The way bill accompanies the cargo while shipping. In comparison to consignment the way bill can’t be the document of title.

WM – it is the basis for freight calculation.