COST & FREIGHT

(Cost and Freight) Seller owns goods until they are loaded on vessel; selling price includes all costs so far plus cost of freight. The buyer is responsible for insurance.

COST, INSURANCE AND FREIGHT

Seller owns goods until they are loaded on vessel; selling price includes cost of goods, insurance, and freight.

CALCULABLE LAYTIME

By doing certain tonnage and hatch calculations one can work out the exact laytime available for cargo operations.

CALENDAR MONTH

A month according to a calendar, e.g., if a vessel is taken up on time charter for say 6 months and has been delivered on 10th June, the charter will expire on 10th December.

CANCELLING DATE

The date, mutually agreed upon between the shipowner and the charterer, on which the vessel must be ready to lad at the latest is called the canceling date. Should the vessel miss her canceling date, the charterers are entitled to cancel the C/P

CAPESIZE

Vessels too large for the Panama and/or the Suez Canal are termed Capesize.

CARGO

Goods, merchandise or commodities of every description which may be carried aboard a vessel, in consideration of the freight charged; does not include provisions and stores for use on board.

CARNET

A customs document permitting the holder to carry or send merchandise temporarily into certain foreign countries (for display, demonstration, or similar purposes) without paying duties or posting bonds.

CARRIAGE OF GOODS BY SEA ACT (C.O.G.S.A.)

1936 U.S. Statute that governs the acts that a carrier is responsible for and defines the terms used in shipping. The act provides that the shipowner's liability will be limited to $500 per shipping package, and it stipulates a one-year time limit for filing suit against the carrier. This act automatically applies to international ocean movements but not to domestic ocean transits unless the carrier agrees to be bound by it.

CARRIER

Usually means Steamship Company, but can also refer to trucking company, airline, or railroad as transporter of cargo.

CENTISTOKES

Describes viscosity of fuel oils—380 c/s or 180 c/s (better). The greater the number of centistokes, the higher the viscosity of the oil and cheaper the cost. (Viscosity is the ability of liquid to resist flow, e.g., honey is more viscous than lemon juice).

CERTIFICATE OF INSPECTION

A document often required with shipments of perishable or other goods, when certification notes the good condition of the merchandise immediately prior to shipment.

CERTIFICATE OF MANUFACTURE

A statement sometimes notarized by a producer, usually also the seller, or merchandiser that indicates the goods have been manufactured and are at the disposal of the buyer.

CERTIFICATE OF ORIGIN

A specified document, required by certain foreign countries for tariff purposes, certifying the country of origin of the merchandise. Sometimes requires the signature of the consul of the country to which it is destined.

CHART DATUM

Water level calculated on the lowest tide that can ever occur and used as a basis for chart measurements.

CHARTER PARTY

A written contract between the owner of a vessel and the one (the charterer) desiring to empty the vessel, setting forth the terms of the arrangement, i.e., freight rate and ports involved in the contemplated trip.

CHARTERING AGENTS

They are specially appointed by large importers or exporters to book space or vessels for their shipments. All enquiries for tonnage are placed in the hands of these chartering agents to the exclusion of any other broker. The chartering agents act as intermediaries for their principals.

CLEAN BALLAST TANKS

Water carried in a tanker or tanks which have no traces of oil. Hence such water is referred to as clean ballast. Tanks carrying the water are therefore clean ballast tanks.

CLEAR DAY/S

Means that the day on which the notice is given and the day on which the notice expires are not included in the notice period.

COLLECT FREIGHT

Freight payable at destination provided the vessel delivers the goods as specified.

COMBI

A ship specifically designed to carry both containers and conventional cargoes.

COMBIDOC

Combined transport document issued by the Baltic and International Maritime Conference (BIMCO)

COMMENCEMNT OF LAYTIME

Laytime is said to commence once a vessel has arrived at a port, complied with all stipulations and tendered the notice of readiness as specified in the C/P

COMMERCIAL INVOICE

A statement of transaction between a seller and buyer prepared by the seller, and a description of the merchandise, price, terms, etc.

COMMERCIAL SET

Set of four "negotiable" documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction.

COMMISSION PAST US

Implies that the quote does not include the normal commission for the brokers quoting the order.

COMMON CARRIER

Transporter who holds himself out to the general public for the transportation of goods over a definite route and according to a regular schedule.

CONGESTION

In order to avoid loss to owners due to non-availability of the berth or waiting at the anchorage, C/Ps specify that the notice of readiness can be tendered by the master “whether in berth or not (wibon), whether in free pratique or not (wifpon), and whether customs cleared or not (wccon)

CONSECUTIVE VOYAGES

A named vessel may be employed on a series of voyages called consecutive voyages against a single C/P. The vessel proceeds loaded from loading to discharging port only to return in ballast and repeat the following voyage on same terms and conditions until all the cargo has been shipped. However, separate calculations of freight and laytime are made for the individual voyages. It differs from a COA where the shipowner can use any ship and the freight rates take into account the cost of ballast return voyage from discharge to load port.

CONSIGNEE

Party who is to receive the good; usually the buyer.

CONSIGNMENT

Merchandise shipped to a foreign agent or customer when an actual purchase has not been made, but under an agreement obliging the consignee to pay the consignor for the goods when sold.

CONSOLIDATION

The Consolidation Endorsement may be added to an Open Cargo Policy at an agreed premium, to provide coverage on merchandise while in transit to, and while at, a common consolidation point for the purpose of preparing or consolidating the merchandise for export.

CONSULAR DOCUMENTS

Bills of lading, certificates of origin or special invoice forms that are officially signed by the consul of the country of destination.

CONSULAR INVOICE

A detailed statement of goods shipped certified by the consul at the point of shipment.

CONTAINERIZATION

Shipping systems based on large cargo-carrying containers ranging up to 48 feet long that can be easily interchanged between trucks, trains and ships without rehandling the contents.

CONTRABAND

During the time of war, materials carried aboard a vessel that could aid a belligerent in the process of the war, such as arms, weapons or munitions.

CONTRACT OF AFFREIGTMENT

In chartering this terms refers to a shipowner (or charterer) who enters into a contract to carry a large quantity of cargo between named port or regions on mutually agreed terms and conditions over a period of time. The shipowner may employ his own vessels or charter other vessels to meet his commitments. This ships used for the carriage are not named. As each shipment takes place a fresh voyage charter is entered into between the parties. This gives the shipowner sufficient flexibility.

CROSS TRADE

To trade a ship wherever suitable cargoes are available, rather then carrying cargoes to and from the country where the ship is registered.

CURRENT ADJUSTMENT FACTOR

This takes account of the rate of exchange variations. Owners are required to pay costs in local currency in the country of loading and discharging. It is a percentage of the base rate.

CUSTOMARY DESPATH or CUSTOMARY QUICK DESPATCH

The charter is required to discharge and/or load as quickly as possible (as fast as can) depending on the custom of the port. There is no fixed time allowed to the charterer. Hence the term is not favourable to the shipowner as the laytime is indefinite and uncertain.

CUSTOME OF THE PORT

This term relates to customs and practices which have been gradually established in the course of time in a particular port. If a C/P provides loading and discharging according to the custom of the port (or with customary dispatch or as fast as can) the laytime becomes indefinite, a situation unfavourable to shipowners as they will find it difficult to put a claim for demurrage or damages for detention.

CUSTOMS BROKER

Licensed by U.S. Customs to clear shipments for clients, also can forward goods "In Bond" to your port.

D/A-DOCUMENTS AGAINST ACCEPTANCE

Instructions from a shipper to his bank that the documents attached to a time draft for collection are deliverable to the drawee against his acceptance of the draft.

D/P-DOCUMENTS AGAINST PAYMENT

Instructions a shipper gives to his bank that the documents attached to a draft for collection are deliverable to the drawee only against his payment of the draft.

DAILY RUNNING COST

Cost per day of operating a ship.

DAMAGES FOR DETENTION

Penalty if cargo 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.

DATE ON CHARTER PARTY

The actual date on which the fixture negotiations are finally concluded, after all subjects have been lifted.

DAY

Means a continuous period of 24 hours which, unless the context otherwise requires, runs from midnight to midnight.

DAYS ALL PURPOSES

total time for both loading and discharging. (See reversible laytime).

DEAD FREIGHT

Where a charterer or shipper fails to fulfil his contract to load the cargo or the full cargo, he commits a breach of the contract for which he is liable to pay damages. These damages are known as dead freight. In other words, payment for space booked on a vessel but not used.

DEADWEIGHT CARGO CAPACITY

Weight of the cargo only which a ship can carry when immersed to her summer loadline. It is the deadweight all told less weight of bunkers, fresh water, constants, etc.

DEADWEIGHT TONNAGE

Signifies the carrying capacity of a vessel and includes bunkers, fresh water, cargo and/or passengers and constants. The difference between the displacement of a vessel on her light draft and her loaded draft represents the deadweight capacity in tons (or tones). Also called deadweight all told.

DECK CARGO

Cargo carried outside rather than within the enclosed cargo spaces of a vessel.

DECK LINE 12”

(or 300mm) line painted amidships on both sides and parallel to the loadlines. The line is located at the point where the upper most continuous deck, known as the freeboard deck, meets the side of the ship.

DEFINITE LAYTIME

One of the three forms of laytime (the other two being “calculable” and “indefinite”). The charterparty specifies the days/hours allowed for loading and/or discharging.

DELAY

Even under All Risk coverage, damage due to delay is not recoverable. Most underwriters have inserted a "Delay Cause" in the Open Cargo Policy, which states specifically that damage caused by delay is not recoverable even if the delay was due to a peril insured against.

DELIVERY & RE-DELIVERY

A time charter commences with the delivery of the vessel to the charterer and comes to an end with the re-delivery of the vessel to the owner. The delivery or re-delivery can occur at a port or a place agreed upon, e.g., passing Skaw (northern tip of Denmark, at the entrance of the Baltic Sea); passing Cape Passero (south-east coast of Italy); passing Key West (Florida), or any other position.

DEMURRAGE

Money (compensation) payable to the shipowner by a charterer for delay for which the owner is not responsible in loading and/or discharging after the laytime stipulated in the C/P has expired.

DESPATCH / DESPATCH MONEY

The money (bonus) payable by the shipowner to the charterer if the vessel completes loading or discharging before the expiry of laytime stipulated in the C/P. usually half the demurrage rate.

DETENTION & DEMAGES FOR DETENTION

If demurrage has not been agreed in the charterparty, the shipowner can claim compensation as damages for detention. A case where a shipowner can claim damages for detention is when a vessel is chartered to load at a berth where the vessel must be always afloat. However the charterer directs the vessel to a berth where the vessel is not always afloat. Since it has been agreed in the C/P that NOR can be tendered and laytime to commence whether the vessel is in berth or not (wibon), the master refuses to comply with the berthing orders. The shipowner in this case may not be able to put a claim for demurrage. However, he may be entitled to “damages for detention”.

DEVIATION CLAUSE

Deviation is an intentional departure from the set or agreed course of the voyage. The ship is not permitted to leave this route for any purpose without justification. To protect themselves the shipowners enter a clause in the charterparty called the “deviation clause” which allows them to deviate to save or attempt to save life and/or property at sea and to give the owners the right to deviate for bunkering purpose (by inserting another clause called the “P & I Bunkering Clause”).

DISBURSEMENTS

Sums paid out by the ship’s agent on behalf of a shipowner and recovered subsequently.

DISPLACEMENT LIGHT

Weight of the vessel without bunkers, fresh water, cargo and/or passengers and constants.

DISPLACEMENT LOADED

Weight of the vessel plus bunkers, fresh water, cargo and/or passengers and constants.

DISPONENT OWNER

A charterer who has control of the vessel (e.g. under a bareboat or time charter) is referred to as a “disponent owner”. During the duration of the charter, he acts as if he were the real owner.

DISTANCE FREIGHT

The expression is used in connection with discharge of cargo at a port other than the original port of destination. For instance, if the vessel runs the risk of being frozen in, the master may deem it advisable to deliver the cargo at the nearest safe port. If the extra distance is worthwhile he can claim distance freight.

DISTRESS FREIGHT

When a chartered vessel is being loaded at the berth and charterers find it difficult to secure completion of cargo at normal rates, they may book cargo at very low rates (called distress rates) in order to fill up the remaining space rather than allow the vessel to be dispatched with empty space.

DOCK RECEIPT

Receipt issued by an ocean carrier or its agent for merchandise delivered at its dock or warehouse awaiting shipment.

DOCUMENTARY CREDIT

A commercial letter of credit providing for payment by a bank to the name beneficiary, usually the seller of merchandise, against delivery of documents specified in the credit.

DOCUMENTS

Papers customarily attached to foreign drafts, consisting of ocean bills of lading, marine insurance certificates, and commercial invoices, and where required, including certificates of origin and consular invoices.

DOWN TO HER MARKS

When a vessel is immersed to the appropriate loadline and therefore cannot load any further cargo.

DRAFT

Buyer's payment for goods.

DRAFT OR DRAUGHT

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.

DRAFT SURVEY

Survey undertaken to determine the quantities of cargo on board a ship.

DROPPING LAST OUTWARD SEA PILOT

Some ports require the service of more than one pilot to be used, one from the berth to the beginning of the channel and another called the sea-pilot for navigation within the channel to the river and canal outside the port limits. In this case the off-hire (or on-hire) survey will be carried out only when the sea-pilot (who navigates the vessel outside the port limits) disembarks from the ship.

DROPPING OUTWARD PILOT

A point of delivery on to and re-delivery off a time charter. The point where an “on-hire” or “off-hire” survey takes place is that place where the pilot who assists the ship in navigation to the pilot station disembarks from the ship. A point in owner’s favour as expenses into and out of a port (e.g., hire of a tug) will be for charterer’s account.

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.

DUTY

(a) ad valorem duty means an assessed amount at a certain percentage rate on the monetary value of an import. (b) Specific duty: an assessment on the weight or quantity of an article without preference to its monetary value or market price. (c) Drawback: a recovery in whole or in part of duty paid on imported merchandise at the time of exportation, in the same or different form.

ECONOMIC SPEED

Speed of a ship which is lower than its normal speed. It provides a reduction in fuel cost as less fuel is consumed.

EVEN IF USED

Time spent in carrying out loading and/or discharging in excepted periods (e.g., Shex =Sundays and holidays excepted) is not to count as laytime, even if used. This qualification of laytime is favourable to the charterer. “Unless used” has the opposite effect and favours the shipowner.

EX (POINT OF ORIGIN)

From the point where the shipment begins movement, e.g., "Ex Factory" "Ex Mine" or "Ex Warehouse." See "Terms of Sale."

EXCEPTED

Refers to laytime. Means that the specified days do not count as laytime even if loading or discharging is done on them, e.g., Sundays and holidays excepted. Note that if laytime has expired then the exceptions do not apply.

EXCEPTION CLAUSES

Clauses in a C/P or B/L which relieve the carriers of responsibility of certain perils, accidents or neglect. (See Hague Rules and COGSA).

EXCEPTIONS TO LAYTIME

The happening of events agreed upon in the C/P which interrupt counting of laytime. These give protection to the charterer. For e.g., a clause dealing with stoppage of work due to strike would be a protective clause.

EX-DOCK

(From dock.) Seller owns goods until they are unloaded on dock at port of discharge; selling price includes all costs so far plus cost of unloading from vessel.

EX-FACTORY

Seller owns goods until they are picked up at his factory; selling price is the cost of the goods.

EXPRESS CLAUSE

In case what has actually been agreed is not very clear, then an express clause is inserted in addition to the printed form drawing attention to the terms specifically agreed upon.