A

AA
Always Afloat
Abandonment
The insured has the right to abandon lost or damaged property, yet still claim full settlement from the insurers. However, certain restrictions may apply.
Accidents
Events which may arise that are not inevitable and not deliberately caused by the insured.
Act of God
Natural hazard such as a typhoon or an earthquake.
Actual Total Loss
A loss in marine insurance in which the property (as a vessel or cargo) cannot be repaired or recovered. Can apply to ships that are registered as ”missing” at Lloyds, or to cargo if it changes it’s character. (E.g. cement becomes concrete)
Additional Perils
Also called special perils. Widens the scope of the insurance by extending coverage. Such forms of contracts, riders and endorsements may contain provisions and stipulations.
Ad Valorem
According to value
Affreightment
Contract for transport of goods, either under a Bill of Lading or a Charterparty. However, Contract of Affreightment (COA) is not the same as a Charterparty.
Allision
American term for collision of a ship with a fixed object.
All Risks
A term describing the coverage of an insurance. However, it is an inaccurate term since an insurance policy will not cover all risks.
Arbitration
A process were disputes are settled between parties that agree not to go before a court, but rather submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision.
Arbitration Clause
A clause in a contract providing for arbitration of disputes arising under the contract.
Arrest
To seize and hold a ship (and cargo and/or freight) under the authority of law in order to provide pre-judgement security for the plaintiff’s maritime claim.
Assignment
The transfer of a debt, right, interest, or property from one party (the assignor) to another party (the assignee), which the assignor has against a third party (the debtor).
Assistance
Salvage
At Sea
A term used to describe a ship that is free from it’s moorings and ready to sail.
Average
term in marine insurance referring to a loss. A particular average is a partial loss.

B

Ballast
Substances loaded by a ship in order to improve stability, trimming, sea-keeping and to increase the immersion at the propeller.
Baltic and International Maritime Council
BIMCO is based in Copenhagen and is the largest independent shipping organisation in the world, whose main objective is to unite shipping interests and pursue the issues which affects its members.
Baltic Exchange
The Baltic exchange is the oldest shipping market i the world, established in 1744. Issues a daily dry cargo index that is the basis of the freight futures market and is used in order to hedge against movements in freight rates.
Bareboat Charterparty
Charterer hires ship only and will have both the commercial and technical responsibility for the ship and will pay for maintenance, crew and insurance.
Barratry
Loss or damage caused to the ship or cargo by a wilful act by the master or seafarers.
B/d
Barrels per day. Term describing volume of petroleum production.
Beneficial Owners
A term usually utilized in order to refer to a registered owner, or another party which has the equitable ownerships of a vessel, such as a parent or holding company.
Bill of Lading (B/L)
A document issued by a carrier that lists goods being shipped and specifies the terms of their transport. Serves as a receipt and contract for the transport of goods. There are many forms of B/Ls, and some are negotiable documents.
Break Bulk
Carriage of goods other than by containers.
Bulk
Cargo shipped in loose condition and of a homogeneous nature. We distinguish between dry bulk (coal, iron ore, grain) and liquid bulk (oil and petroleum products).
Bulk carrier
Ship designed to transport dry bulk cargoes. Carriers of liquid bulk cargoes are referred to as tankers.
Bunkers
Fuel for a ship’s engines.

C

Cabotage
The carriage of goods or passengers within the territory of the same country. Often certain statutes will apply.
Cancellation
The insurers are entitled to cancel a policy at any time, with a few exeptions. In case of the insured cancelling a policy, the insurer may charge short period rates which are more expensive than the long term rates.
Capesize Vessel
A Capesize vessel is the largest type of bulker with a carrying capacity of 80,000 dwt and above. Capesize vessels are unable to pass throught the Suez Canal because of their dimensions and must sail around the Cape of Good Hope in order to transport cargo between continents. Thus, the name Capesize vessels.
Captive
An in-house insurance company used by a corporation to insure the risks of the parent company. A captive may have considerable tax advantages.
CEFOR
Central Union of Marine Underwriters Norway. CEFOR was founded 15 August 1911 and the object of CEFOR is to strengthen and develop the basic concepts of the Norwegian marine insurance market and unite and coordinate its members around key issues for the marine insurance industry.
Certificate of Insurance
A certificate issued by an insurance company or its agent. It verifies that a certain insurance policy is in effect for stated amounts and coverages, and names those insured.
Cellular Containership
Containership equipped with permanent container cells, with little or no space for other types of cargo.
C.F.R
Cost and freight. Another term used in contracts. Seller is responsible for the cost of transportation to named port of destination, while the buyer is responsible for the risk of loss or damage to the cargo. Hence, buyer must procure marine insurance.
Charterparty
A mercantile lease of a vessel; a specific contract by which the owners of a vessel let the entire vessel, or some principal part of the vessel, to another person, to be used by the latter in transportation for his own account, either under their charge or his. Three types of charterparties: Time charter, voyage charter and bareboat charter.
C.I.F
Cost, insurance, freight. Term used in contracts which states that the seller is the party responsible for paying the cost of insurance and transportation in order to bring the cargo to the named port of destination.
Classification Societies
Classification Societies are independent, self-regulating bodies with no commercial interests which inspect, study and report on the seaworthiness and the general and particular condition of individual ships. They may also perform Port State Control on behalf of Flag states.
Co-insurance
Co-insurance is the sharing of one insurance policy between two or more insurers. Only utilized on very large risks, such as ships.
COLREG
Convention on the International Regulations for Preventing Collisions at Sea of 1972. Basic ”rules of the road” at sea.
Collission
An accident resulting from violent impact of two or more moving objects, e.g. ships, which causes loss or damage.
Condition
An uncertain future act or event whose occurrence or nonoccurrence determines the rights or obligations of a party under a legal instrument and especially a contract. A condition may also be a clause in the instrument describing the act or event and its effect.

D

Daily Indemnity
See Indemnity. Daily indemnity is compensation for loss received per day by the insured. In marine insurance, daily indemnity contributes to the Loss of Hire value.
Deadfreight
In case a charterer loads less cargo than contracted in the charterparty, the charterer must pay a sum of damages to the shipowner or the intermediate charterer. This sum of damages is referred to as deadfreight. A deadfreight factor is the percentage of a ship’s carrying capacity that is not utilized.
Deadweight tonnage
A measure for the carrying capacity of a ship (in tons).
Deductible
A clause in an insurance policy that relieves the insurer from paying an initial specified amount in the event that the insured experiences a loss. Sometimes referred to as franchise.
Demurrage
Detention of a ship during loading or unloading beyond the scheduled time of departure and the compensation paid for such detention.
Dispatch
An agreed amount which the shipowner has to pay to the charterer if the ship completes loading or discharging before the laytime is expired. Applicable to voyage charters.
Displacement tonnage
The actual weight of a ship. Not used in commercial shipping.
Disponent owner
A person or a company that is not registered as owner of a ship, but has control over the commercial operations of the ship through a bareboat or time charter, has as a disponent owner the right to ”dispose of” the ship by sub-chartering it to a third party.
Dry bulk
Non-liquid cargo carried in bulk.

E

Effective Date
The date when the cover under an insurance policy comes into effect. Usually, the cover does not become effective before the insurer has accepted the cover and issued a cover note.
Endorsement
A special amendment to the wording of an insurance policy. It may be attached to the policy from inception or may be added to policy later.
Excess
Another term used to describe deductibles. Insurer will pay any claims in excess of the deductible which is agreed upon in the insurance policy.
Excess of Loss Reinsurance
Type of reinsurance where the initial insurer determines the amount that it is able and prepared to endure on any one loss. The reinsurer will pay the amount of any claim in excess of this retention.
Exclusions
A part of an insurance contract that excludes specified risks from coverage. E.g. in marine insurance there are certain geographical areas which are excluded from coverage due to war and other risks.

F

FAL
The Convention on the Facilitation of International Maritime Traffic of 1967. FAL was adopted by IMO in order to attain a consistent way of regulating shipping and trade.
F.A.S
Free Alongside Ship. Term in contract of sale used to express that the goods are delivered by the seller when the goods are placed alongside the ship at the port of destination.
F.C.L
Full Container Load.
Feeder vessel
A short-sea ship which transfers cargo from a central hub port to smaller ports.
FEU
Forty Foot Equivalent Units. Measure for container sizes. 40' long, 8'6'' high and 8' wide.
FIO
Free In and Out. Term of a charterparty which determines that the charterer is responsible for paying for certain cargo handling operations. Thus, free of charge for shipowner.
Flags of Convenience (FOC)
A foreign flag under which a merchant vessel is registered for purposes of reducing operating costs or avoiding government regulations.
Fleet policy
An insurance policy covering more than one single ship under the same insured owner or management company.
FO
Free Out. A term of a charterparty which requires the charterer to control and pay for discharging the cargo.
FOB
Free On Board. Export term which specifies the that purchaser is without charge for delivery on board or into a carrier at a specified point or location.
Free of particular average (FPA)
Excluding partial losses or Total loss only. FPA conditions have mainly been replaced by the modern ”Institute Cargo Clauses C”.
Freight
Goods carried by a commercial carrier, or the charge for transporting goods. The latter is also called freightage or freight rate.

G

General Average
A contribution made, by all parties concerned in a sea adventure, toward a loss occasioned by the voluntary sacrifice of the property of some of the parties in interest for the benefit of all. It is called general average, because it falls upon the gross amount of ship, cargo, and freight at risk and saved by the sacrifice.
General cargo
A non-bulk cargo composed of miscellaneous goods. Examples of general cargo carriers are breakbulk freighters, car carriers and cattle carriers.
Gross tonnage (Gt)
Gt is the actual carrying capacity of a ship’s hull below the upper deck, in cubic feet, divided by 100.
Gross registered tonnage (Grt)
The volumetric cargo capacity of a ship according to its certificate of registry.
Grounding
Contact by a ship with the seabottom

H

Hague-Visby Rules
An International Convention in Hague that established the basic duties of shipper and carrier for goods covered by a bill of lading. When incorporating amendments agreed on at Visby in 1968, these Rules were renamed the Hague-Visby Rules.
Hamburg Rules
In March 1978 an international conference in Hamburg adopted a new set of rules (The Hamburg Rules), which radically alter the liability which shipowners have to bear for loss or damage to goods in the courts of those nations where the rules apply.
Hatch
An opening in the deck of the ship which is the ship’s compartment.
Hazard
A possible source of danger.
HAZ MAT
Hazardous Material.
Hire
Payment given in exchange for services rendered in bareboat, demise, and time charterparties.
H&M insurance
Marine insurance which covers damages to the hull and machinery of a ship.
Hold
Name for the spaces below the main deck of a ship which is designated for stowage of general cargo.
Hull
Shell or body of a ship.
Hydrofoil
A vessel that flies over water and thus eliminates friction between the water and the hull. Under acceleration it rises above water but remains in contact with the surface through supporting legs.

I

Indemnity
Compensation for damage, loss, or injury suffered. Essential principle in insurance. The insured part is not to profit from any claim, but shall receive compensation for loss so that the insured may return to the same financial position as before loss or damage occurred.
Inland waters
Refers to lakes, rivers, streams, canals, etc.
Institute cargo clauses
Clauses in an insurance policy which comprise the Free of Capture & Seizure Clause (F.C.&S) and the Free of Strikes, Riots & Civil Commotions Clause (F.S.R&C). These clauses exclude risks of war, strikes, riots and civil commotions. The wording in the various institute clauses are issued by the Institute of London Underwriters.
Institute strike clauses
Clauses in an insurance policy which cover loss or damage to property as a result of strike or other labor disturbances, riots or civil commotions. These clauses do not cover damages caused by delay or damages that are results of warlike actions.
Insurable Interest
A principle of insurance which requires the insurer to have a financial interest in the insured property. In marine insurance, insurable interests have to be in place when a claim occur, but not consequently when the policy is written.
Intermediaries
An intermediary is a person or a company which act as an agent between persons or things. The insurance industry utilize insurance brokers as intermediaries in order to introduce clients to insureres and to provide day to day servicing of a client’s insurance needs.
Intermodalism
The concept of transportation as a door-to-door service rather than port-to-port. Thus efficiency is enhanced by having a single carrier coordinating the movement and documentation among different modes of transportation.
International Maritime Organisation (IMO)
The United Nations agency concerned with international maritime activities.
International tonnage certificate
A certificate issued to a shipowner by a government department in the case of a ship whose gross and net tonnages have been determined in accordance with the International Convention of Tonnage Measurement of Ships. The certificate states the gross and net tonnages together with details of the spaces attributed to each.
International Union of Marine Insurance (IUMI)
The international association of marine insurers for hull, cargo, liability, energy and offshore. Headquartered in Zurich, Switzerland.
INTERTANKO
Association for independent tanker owners whoses aim is to represent their members internationally.

J

Jack-Ups
A type of mobile drilling rig which is designed to operate in shallow water. Quite stable since the rest on the sea bed.
Jettison
Term in marine insurance referring to the act of throwing cargo or equipment (jetsam) overboard when a ship is in danger. Jettison is covered under the Institute Cargo Clauses.
Jones Act
An American maritime law which requires that all U.S. domestic seaborne trade is to be carried by U.S.-flag, U.S.-built, and U.S.-manned vessels.
Jurisdiction
A term referring to the nature and the extent of the legal authority. Defines the right and power to interpret and apply the law within the territory where the legal authority can exercise power.

K

Knot
Unit of speed in navigation which is the rate of a nautical mile (6,080 feet or 1,852 meters) per hour.

L

Laid-Up tonnage
Term describing ships that are not in active service. Possible reasons for laid-up tonnage could be need for reperations and upgrading, or the shipowner is awaiting better markets.
Laker
Ships which exclusively trades in the Great Lakes of North America.
LAY/CAN
Laydays/Cancelling
Laytime
Time agreed between a shipowner and a voyage charterer in which to load and/or discharge the cargo. It is expressed as a number of days or hours or as a number of tons per day.
Lay up
Impermanent discontinuance of trading of a ship by a shipowner during times when there is an oversupply of ships in relation to the level of available cargoes. See also Overtonnaging.
Leader
An underwriter whose judgement is so respected by other underwriters that they will follow his lead in accepting a risk presented by the assured’s broker.
Legal Liability
The liability imposed by law for negligence and recklessness which results in injuries to persons or damage to someone else's property.
Lessor
The bestower of a lease, e.g. a shipowner, who remains the owner of the leased property throughout the term of the lease and who receives consideration from the lessee.
Lessee
The person or company to whom property is rented or leased. In shipping, the lessee is the charterer of a vessel.
Letter of Undertaking (LOU)
A LOU is a document issued by the insurer to the creditors of the insured party. The document provides the creditors with a guarantee that their claim will be satisfied up to the amount specified in the letter.
Liability Insurance
Insurance cover designed to protect the insured from legal liability claims which may arise as a result of damage to a third party’s property. In marine insurance, Protection & Indemnity (P&I) insurance covers the shipowner’s legal liability.
Limitation of shipowner´s liability
The right of shipowners, charterers, managers, salvors and insurers of ships to limit their liability for ceratin maritime claims. Limitation of liability may either be a sum repersenting the value of the ship, or a sum determined by the ship’s tonnage.
Limits of liability
A liability insurance policy usually contains the maximum sum of money in which an insurance company agrees to pay in the event of a loss or a damage covered by the policy.
Liner
A ship which is employed on a regular schedule and that loads and discharges at specified ports.
Liner terms
Term in a charterparty that determines the common responsibility of the shipowner to control and pay for loading, stowage, trimming and discharge of the cargo of the charterer.
Lloyd´s
The world’s oldest and most famous insurance market. Lloyd's of London is an association of underwriters, for marine insurances where individual underwriters accept or reject the risks offered to them. The Lloyd's Corporation provides the support facility for their activities.
Lloyd´s registerof shipping
The world’s leading classification society, headquartered in London.
LNG
Liquid Natural Gas
LNG Carrier
Tanker designed to transport liquid natural gas. The cargo tanks are made of a special aluminum blend and are heavily insulated to carry natural gas in its liquid state at a temperature of -285°F. The LNG ship costs about twice as much as an oil tanker of the same size.
Loaded leg
The section of a ship’s voyage during which the ship is carrying cargo.
Loadlines
Lines that are painted on the side of a ship and specifies the maximum depth to which the ship may safely be loaded. IMO adopted the International Convention on Loadlines in 1966, which set the minimum permissable freeboard, according to the season and the ship’s trading patterns.
LOF- Lloyd´s Open Form
LOF is probably the most widely used salvage contract in use throughout the world. LOF provides a reputable and secure framework within which the arbitration process can operate.
Log
A ship’s log is a record book which is carried aboard a ship and where all events of significance relating to the journey are documented by the officers. The log may be utilized as evidence in a maritime dispute.
LOI - Letter of Indemnity
Guarantee from the shipper or consignee to indemnify carrier for costs and/or loss, if any, in order to obtain favorable action by carrier. It is frequently used to allow the consignee to take delivery of goods without surrendering B/L which has been delayed or become lost.
LOLO
Lift On Lift Off.
Long ton
1.016,05 kg
Loss Adjusters
Loss adjusters are independent claims specialists appointed by insurance companies to investigate complex or unusual claims.
Loss of Hire
In marine insurance, a loss of hire insurance covers financial loss which may arise as a result of business interruption. The insured LOH value is determined by daily indemnity and the maximum indemnity period. See also Consequential loss.
Loss Ratio
The ratio between the premiums paid to an insurance company and the claims settled by the company.
LPG
Liquid Petroleum Gas
LPG Carrier
A tanker designed to carry a wide variety of gases, such as ammonia, butane, propane and ethylene.
Lumpsum freight
Payment to shipper for a charter of a ship up to a stated limit regardless of the cargo quantity.
LSA
Liner Shipping Agreements

M

Manifest
A document that lists all of a ship’s cargo, extracted from the B/L.
Marine Insurance
Insurance which covers loss or damage of a ship’s hull and machinery, cargo carried, liabilities that can devolve upon ships and operators (known as ”Protection & Indemnity), wharves, ports and harbours, container terminals and even oil platforms and drilling rigs.
Marine Reinsurance
A contract where risks insured under a number of marine insurance policies are redistributed between one or more reinsurers.
Maritime Liens
A secured claim against a ship in respect of services provided to the vessel or damages done by it. In other words, retention of the ship until outstanding claim or dept is paid.
MARPOL
The International Convention of Prevention of Pollution from Ships. MARPOL concerns the prevention of pollution from oil, bulk, chemicals, dangerous goods, sewage, garbage and atmospheric pollution.
Maximum Indemnity period
A limit under a Loss of Hire insurance relating to the maximum period (of days) over which the insurer will pay for loss of hire. The insured party determines the maximum indemnity period and if the agreed period is inadequate, the insured party may be affected by severe financial loss.
Memoranda of understanding (MOU)
MOUs are regional Port State Control (PSC) organisations and agreements that cover all of the world’s oceans.
MODU
Mobile Offshore Drilling Unit.
Mooring Line
A line that holds a ship in place.
Moral Hazard
Moral hazard refers to a situation in which an insured party purposely engages in risky behavior, knowing that any costs incurred will be compensated by the insurer. See also Hazard.
Mortgagees Interest Insurance (MII)
MII is a marine insurance which covers loss of security and/or investment as a result of non-recovery of claims under standard Hull, War and P&I policies. A MII insurance will, in addition to mortgagees, incorporate innocent owners, lessors, shareholders, etc.
Mortgagees Interest Insurance Additional Perils (Pollution
A marine insurance which covers loss of security or investment as a result of seizure and disposal of vessel or insurance proceeds by authorities in order to compensate claimants and disburse clean-up costs. In addition, the MAP may provide coverage for passenger liability on cruise vessels if the cover provided by P&I Clubs is inadequate.
M/T
Metric tons
Multipurpose ship
A ship that is capable of carrying a broad variety of cargoes which require different methods of handling.

N

Nautical Mile
A measurement for distance of one minute of longitude at the equator, approximately 6,076.115 feet. The metric equivalent is 1,852 meters.
Neobulk
Shipments which consist entirely of units of a single commodity, such as vehicles, lumber or scrap metal.
Net Capacity
The number of tons of cargo which a vessel can carry when loaded to her summer freeboard marks. Also called cargo carrying capacity or cargo deadweight.
Net Registered tons (NRT)
NRT describes the volumetric area available for cargo at 100 cbf = 1 ton. NRT is used by port and canal authorities as a basis for charges.
Net Tonnage
Net tonnage is produced by a formula which is a function of the moulded volume of all cargo spaces of a ship. In other words, the tonnage of a ship after a deduction from the gross tonnage has been made i order to allow space for crew, machinery, etc.
No cure No pay
A law principle of salvage which prohibits payment of any salvage reward if the salvage operation is unsuccessful.
Notice of Abandonment
A notice that is given by the insured party to the insurer which indicates that the insured wishes to treat a constructive total loss as an actual total loss and to abandon the insured property to the insurer.
Notify party
The party to be notified by the carrier of arrival of goods. Usually identified in the B/L.
NVOCC
Non-Vessel-Operating Common Carrier. An agent who handles business for the ship, but does not operate the vessel himself.

O

OBO
Ore/Bulk/Oil carrier. A large multipurpose ship that is designed to carry a wide variety of cargoes
OCMI
Officer in Charge of Marine Inspection.
Off-Hire
In a time charter, the owner is entitled to a limited time for his vessel to be off hire until such time as the vessel may be repaired or dry-docked.
Oil Tanker
Tanker designed to carry crude oil in bulk.
OPA
Oil Pollution act of 1990. The right of a shipowner to limit his liability is reduced if an event is a result of contributory negligence. American governement has the authority to seize and arrest a vessel if claims exceed shipowner’s P&I Pollution Limit.
Open rates
Refers to pricing systems that are flexible and not subject to conference approval. Usually applied to products in which tramps are substituted for liners.
Open Registry
Another term used for Flag of Convenience.
OSV
Offshore Supply Vessel. OSVs, also called Platform Supply vessels, deliver drilling supplies as liquid, mud, dry bulk cement, drinking water, drill pipes and a variety of other supplies to drilling rigs and platforms.
Overtonnaging
Term describing a situation where there are too many ships generally or in a particular trade for the level of available cargoes. The consequence of overtonnaging is that freight rates decline to the extent that it is not economical to trade with a ship, thus a shipowner may chose to lay up ships until it is economically favourable to trade their ships again.

P

Panamax
A Panamax vessel is the largest type of bulker which is capable of passing throught the Panama Canal had can have a carrying capacity ranging from 50,000 dwt to 80,000 dwt.
Particular Average
A particular average is a partial loss.
Passenger Ship
A ship which is authorized to transport more than twelve passengers.
Perils of the sea
Perils that are deviant to the sea, but are of such an extraordinary nature and power that one cannot guard against them using ordinary skill and prudence.
P&I
Protection and Indemnity is the liability insurance carried by marine carriers to protect against damages or injuries occasioned by the use and operation of the vessel. P&I will cover shipowners if they are sued for negligence, causing damage to another vessel, or injury to an individual.
Pilot
A person that is qualified to guide ships through difficult waters going into or out of a harbor. In certain territorial waters it is mandatory for ships to have a pilot onboard.
Pilotage
The practice undertaken by a pilot of assisting the master of a ship in navigation when entering or leaving a port. The term may also refer to the fee payable for the services of a pilot.
Pleasure craft
A term used to describe any class of vessel which is designed for recreational purposes only.
POL
Petroleum, Oil and Lubricants.
Pooling
A grouping of resources, expertise, equipment, etc. for the common financial advantage of the participants In the shipping industry, investment pools are used to buy a ship; a diversified portfolio becomes mutually owned by the mutual investors who have "per share" interests. See also Consortium.
Port of call
The port where a ship will load or discharge cargo.
PSV
Platform Supply Vessel. See also OSV.
Port State Control (PSC)
PSC is the inspection of foreign ships in national ports to verify that the condition of the ship, crew and the ship’s equipment comply with requirements imposed by international regulatory bodies such as the IMO. If a ship does not comply with mandatory international requirements, the PSC officers have the authority to arrest foreign ships in port.
Product tankers
A tanker that carries petroleum products, such as gasoline and diesel oil, in bulk.
Punitive Damages
A term that refers to damages awarded by a court against an insured or against an insurer in addition to compensatory damages. Punitive damages are intended to punish the insured or the insurer for willful and immoral misconduct and to serve as a deterrent.

Q

Q-flex
The largest LPG tanker which will be ready for delivery in 2007. The cargo capacity of the Q-flex will be 210,000 cbm.
Quota share
The basic form of participating treaty whereby the reinsurer accepts a stated percentage of each and every risk within a defined category of business on a pro rata basis. Participation in each risk is fixed and certain.

R

Reefer
Refrigerator ship. A ship which is designed to carry cargo that needs to be refrigerated, such as fruit. Cleanliness and the maintenance of optimum temperatures are the prerequisites.
Reefer Box
An insulated container designed to carry cargoes requiring temperature control. It is fitted with a refrigeration unit which is connected to the carrying ship's electrical power supply.
Remuneration
The act of paying for goods or services or to compensate for losses.
Relay
The process of transferring containers from one ship to another when both ships are controlled by the same carrier.
Return cargo
A cargo which enables a ship to return loaded to the port or area where her previous cargo was loaded.
Rolling cargo
Cargo which is on wheels and is able to be driven or towed on board a ship.
RoPax
Roll on Roll off – Passenger. A ship which is similar in design to a RoRo ship. However, in addition to carrying rolling cargo, there are passenger facilities onboard. A RoPax ship carries more than 12 passengers, hence it has to conform to the rules of a passenger ship and not of a cargo ship.
RoRo
Roll on Roll off. A ship which is designed for the purpose of carrying wheeled and tracked vehicles as all or most of his cargo. As long as there are less than 12 passengers or lorry drivers onboard the ship, it can be built according to cargo vessel rules.

S

Salvage
Term that refers to the recovery of a wrecked ship or the property which has been recovered from the wrecked ship.
Salvage reward
Compensation that is payable to the salvor, accordingly to a salvage award.
SAR
Search and Rescue Convention of 1979
Seaworthiness
The adequacy of a ship in materials construction, equipment, crew and outfit for the trade in which it is employed. Any sort of deteriorations to the ship by which the cargo may suffer. Examples of deteriorations which may constitute a ship unseaworthy are overloading, untrained officers, etc.
Seaworthiness certificate
A certificate issued by a classification society surveyor to allow a ship to proceed after she has experienced an event that may have affected her seaworthiness. It is frequently issued to enable a vessel to proceed, after temporary repairs have been effected, to another port where permanent repairs are to be carried out.
Self-unloader
A bulk carrier which has fixed gear onboard the deck for loading/unloading cargo.
SDR
Special Drawing Rights. SDR are a form of international money created by the IMF which is acceptable in settlement of debts between countries. Value of a natural currency will rise in SDRs as the value of the national currency rises on the world market. Therefore, SDR is a fair evaluation of the comparison of national currencies.
Sister ships
Ships built on the same design.
Sister ships arrest
In case an event is caused by a ship and if the person liable to the claim is the owner of a sister ship, the sister ship may be arrested in order to provide security for the claim.
Spot (voyage)
A charter for a particular vessel to move a single cargo between specified loading port(s) and discharge port(s) in the immediate future. Contract rate ("spot" rate) covers total operating expenses, i.e., bunkers, port charges, canal tolls, crew's wages and food, insurance and repairs. Cargo owner absorbs, in addition, any expenses specifically levied against the cargo.
SOLAS
Safety of Life at Sea Convention from 1974. The main objetive of the SOLAS Convention is to specify minimum standards for construction, equipment and operations of ships. Flag states are responsible for controlling that shipping companies are in compliance with the SOLAS Convention.
STCW
International Convention of Standards of Training, Certification and Watchkeeping for Seafarers. The first convention that established basic requirements for seafarers on an international level
Stevedore
One who is employed in the loading or unloading of ships.
Stowage
Term referring to the placing of cargo in a ship in a way which will ensure the safety and stability of the ship.
Stranding
When a ship runs on shore.
Stripping
Removing cargo from a container
Stuffing
Putting cargo into a container.
Subrogation
The substitution of one person for another, especially the legal doctrine of substituting one creditor for another.
Suezmax
The largest tanker that is capable of passing through the Suez Canal. Carrying capacity ranges from 120,000 dwt to 200,000 dwt.

T

Tank cleaning
Removal of all traces of a cargo from the tanks of a tanker normally by means of high pressure water jets.
Tanker
A tanker is a bulk carrier designed to carry liquid cargoes. Se also oil, chemical and LPG/LNG tankers.
Tender
The offer of goods for transportation.
Territorial waters
The waters surrounding a nation and its territories over which that nation exercises sovereign jurisdiction
TEU
Twenty Equivalent Units. Measure for container sizes. 20' long, 8'6'' high and 8' wide
Time Charterparty
A form of charter party wherein owner lets or leases his vessel and crew to the charterer for a stipulated period of time. The charterer pays for the bunkers and port charges in addition to the charter hire.
Ton Mile
The movement of a ton of freight one mile. Useful to shippers since it includes the distance to move a commodity in the calculation.
Ton
Measurement of volume.
Towage
Charges for the services of tugs assisting a ship or other vessels in ports or other locations; the act of towing a ship or other objects from one place to another.
Tramp Service
A merchant cargo ship that does not run in any regular line but takes cargo wherever the shippers desire.
Tug
A powerful, strongly built boat designed to tow or push other vessels

U

ULCC
Ultra Large Crude Carrier. Largest type of crude carrier with a carrying capacity exceeding 320,000 dwt.
UNCTAD
United Nations Conference on Trade and Development. A ”policy-making” body with its main objective being to promote international trade, especially amongst emerging nations.
Unseaworthiness
Term referring to the condition of a vessel when it is not in a proper state of maintenance, or if the loading equipment or crew, or in any other respect is not ready to encounter the ordinary perils of sea.
USCG
Unites States Coast Guard
Utmost good faith
A basic principle of insurance. Mutual trust in negotiating an insurance contract. The insured and their broker must disclose and truly represent every material circumstance to the underwriter before acceptance of the risk. A breach of good faith entitles the underwriter to avoid the contract.

V

VLCC
Very Large Crude Carrier. The second largest type of crude carrier with a carrying capacity ranging from 200,000 dwt to 320,000 dwt.
Voyage charter
The voyage charter is the traditional spot voyage. Ship is chartered to transport a specified cargo from one port to another. Shipowner is responsible for the operation of the ship.

W

Warranty
A term of contract that guarantees the purchaser that the product/cargo is what it is represented to be. Breach of warranty will alllow the offended party to claim only damages.
War Risk
Insurance coverage for loss of cargo and property resulting from any act of war.
Waybill
A waybill is a non-negotiable receipt issued after receipt of the cargo from the carrier. Usually employed in container trade for common shipments with consent of the shipper who does not insist on being issued a negotiable B/L. It is not a document of title, but a contract of carriage. Also called Sea waybill.
Wharfage
Charge assessed by a pier or dock owner against cargo handled over the pier or dock or against a company using the pier or dock.
Worldscale
The term used in order to quote tanker freight rates in the spot market.
Wreck removal
The act of clearing navigable waters of sunken ships or other submerged objects which is a threat to the safety of navigation.

X

XOL/XL
Abbreviation for Excess of loss. See also Excess of Loss Reinsurance

Y

York-Antwerp Rules
A code of rules adopted by an international convention in 1890, updated and ammended most recently in 2004, for the purpose of establishing a uniform basis for adjusting general average.

Z