ICE CLAUSE

To safeguard the shipowner that the vessel is sent to a safe port free from ice, a protective clause dealing with ice, a protective clause dealing with ice conditions in inserted in the C/P.

IN BOND

A term applied to the status of merchandise admitted provisionally to a country without payment of duties -- either for storage in a bonded warehouse or for trans-shipment to another point, where duties will eventually be imposed.

IN GEOGRAPHICAL ROTAION

If an option is given to the charterers to load or discharge a ship in more than one part within a range of ports, it is important to state that if they exercise the option the ship will proceed to the ports in geographical rotation (without, for example, going north and south and then again north). This is important to the owner to determine the distance, time and fuel expenses.

IN REGULAR (USUAL) TURN / TURN TIME

Turn refers to the sequence in which a vessel may be allowed to berth for (coal) loading or discharging by the port authorities due to congestion at the port (or availability of coal). Laytime does not generally count against the charterer while the ship is waiting its turn. However, if the C/P says “free of tune” then time waiting for a berth will count.

IN TRANSITU

On the passage.

IN WRITING

Writing means in relation to a notice of readiness, a notice in any manner or mode and includes fax, cable, telegram and telex.

INDEFINITE LAYTIME

This arises in cases where the shipowner agrees for the vessel to be loaded/discharged as fast as can, with customary dispatch, with customary quick dispatch or as per the custom of the port. In such cases there is no way to determine the exact time the vessel will take for loading and discharging.

INHERENT VICE

A loss caused by the inherent nature of the thing insured and not the result of a casualty or external cause.

INLAND BILL OF LADING

A bill of lading used in transporting goods overland to the exporter's international carrier.

INSTITUTE WARRANTY LIMITS

In insurance, a set of warranties (i.e. same as conditions, in insurance) in a hull policy which prohibit the vessel from entering certain waters (mainly ice areas) without payment of additional premium or with a change in conditions.

INTERCLUB AGREEMENT

An agreement by 14 mutual associations concerning the method of settling liability of cargo claims between shipowners and charterers. The Inter-Club New York Produce Exchange Agreement is a clause in the NYPE time C/P.

INTERMODAL

Carriage of a commodity by different modes of transport, i.e. sea, road, rail and air within a single journey.

INTERNATIONAL TRANSPORT WORKERS’ FEDERATION

Organisation which looks after the welfare of transport workers and deals with their pay and working conditions. It issues the “ITF Blue Certificate” to a ship if its owner complies with their requirements. Non-production of such a certificate can cause problems for a vessel in all Australian ports and in some ports of other countries.

IRREVOCABLE LETTER OF CREDIT

A letter of credit in which the specified payment is guaranteed by the bank if all terms and conditions are met by the drawee.

JETTISON CLAUSE

Clause in a B/L or C/P setting out the circumstances under which a master is entitled to jettison goods from a vessel. (Jettison is to throw goods overboard for the purpose of lightening the ship).

KEEL CLEARANCE

Minimum distance between the bottom of a ship and the bed of sea, also called under keel clearance.

LAYCAN

Stands for “laydays commencing / laydays canceling” and is a spread of dates which provides for the earliest date for the ship to arrive and for laytime to commence and also gives the last date for the charterer to cancel the charter if the vessel does not arrive by the date.

LAYDAYS

The correct interpretation of this is the earliest time when the vessel is expected to be ready for loading and/ or discharging. (Sometimes the word is used to refer to “laytime” but then this leads to confusion. Laytime is the period allowed for the cargo to be loaded and/or discharged).

LAYTIME

Means the period of time agreed between the parties during which the owner will make and keep the ship available for loading/ discharging without payment additional to the freight. The time allowed to the charterer is not indefinite. The time is either “fixed” or “calculable”.

LAY-UP

To stop trading a ship temporarily due to bad markets. During lay-up the daily running lost of the ship is greatly reduced.

LANE METER

A method of measuring the space capacity of Ro/Ro ships whereby each unit of space (Linear Meter) is represented by an area of deck 1.0 meter in length x 2.0 meters in width.

LENGTH OVERALL

Maximum length between the extreme ends (forward and aft) of the ship. (Also referred to as “overall length”).

LETTER OF CREDIT - COMMERCIAL

A letter addressed by a bank, at the insurance and responsibility of a buyer of merchandise, to a seller, authorizing him to draw drafts to a stipulated amount under specified terms and undertaking conditionally or unconditionally to provide eventual payment for drafts.

LETTER OF INDEMINITY

A written statement in which one party (shipper) undertakes to compensate another (shipowner) for the cost and/or consequences of carrying out a certain act, e.g., obtaining a release of goods without producing an original B/L.

LIEN

The right to retain control of cargo until the charges related to it are paid.

LIGHT CARGO

Goods which fill the ship cubically but do not bring it down to its marks are called light cargoes. (Goods which bring the ship down to its marks but do not completely fill the space available for cargo are called heavy cargoes).

LIGHTENNING (OR LIGHTERAGE)

To reduce the draft of the vessel so as to enable it to enter the part/berth where the depth of available water is restricted. This may be achieved by lightening or lighterage by discharging part of the cargo in barges outside the port/berth.

LINER IN FREE OUT

The shipowner bears all costs for loading (stowing, trimming etc.). The charterer (or receiver/consignee) pays all costs incurred for discharge at the destination part.

LINER TERMS

A rate that includes freight plus handling charges at loading and discharging ports. (Similar to “Gross terms” used in bulk cargo tramp vessels).

LOAN RECEIPT

Document signed by the Assured where he acknowledges receipt of money advanced by the insurance company as an interest-free loan (instead of payment of a loss) repayable to the insurance company only if the loss is recovered from a third party and then only to the extent of the recovery.

LOSS OF MARKET

A situation in which, for one reason or another, sound cargo is no longer wanted by the consignee when it arrives. This is a "business loss" not recoverable under a Marine Cargo Policy; e.g., Christmas trees arriving in January undamaged.

LOWEST ASTRONOMICAL TIDE

It pre-supposes that at the very wors there would always be that depth of available water at the particular spot.

LUMPSUM FREIGHT

A fixed sum is paid to the shipowner regardless of the quantity of cargo actually shipped.

MANIFEST

An itemized list by Bill of Lading number of the kind and quantity of all cargoes loaded aboard a vessel, prepared by the vessel's Master.

MEAN DRAFT

Average of forward and aft draft of a vessel.

MIN/ MAX

Minimum and maximum cargo; a fixed quantity.

MORE OR LESS CHARTERER’S OPTION

Gives the option to the charterer to increase or decrease the quantity of cargo by a percentage agreed in advance.

MORE OR LESS OWNER’S OPTION

Gives the option to the shipowner to increase or decrease the quantity of cargo by a percentage agreed in advance, e.g., 10,000 tonnes 5% more or less in owner’s option, means that the shipowner may load between 9500 to 10500 tonnes of cargo.