Lecture 3 part 2 please continue to learn the following terms:

NOTICE OF READINESS The master must advise charterers in writing as soon as his vessel
is ready to load or discharge. The following conditions must first be met:

1. The ship must be at the place of loading or discharge as set forth in the charter party, or as
near thereto as she can safely get.

2. The ship must be fully prepared to load or to discharge immediately.

Laydays commence from the moment the notice of readiness has been accepted by the
charterers, unless (as usually the case) stipulations to the contrary have been included in the
charter. Under most grain charter parties, notification of readiness to load must be accompanied
by a certificate issued by a competent surveyor stating that the vessel is ready to load in all holds.

OCEAN MARINE Ocean Marine Insurance policies (wet policies) generally insure against
loss or damage to three separate interests: the hull or the ship itself; the cargo; and the freight
which would be received for the carriage of the goods.

OUTTURN WEIGHT The delivered weight of the cargo, which is determined after discharge.
Some minor loss of weight due to cargo sticking to the holds is inevitable for bulk cargos.

OVERLAP The period of time during which a charterer retains a vessel beyond the stated
period of the time charter.

OWNERS MARKET Strong market.

PANAMA CANAL TONNAGE The Panama and Suez Canal tonnages are measured somewhat
differently than the gross and net registered tonnages of a given vessel. Each is, as a rule, larger
than the registered tonnage because of the inclusion of space which, under national measurement
rules, is exempted in the calculation of registered tonnage. For calculation purposes it is the Suez
or Panama net tonnage on which tolls are assessed when transiting the applicable canal. This
matter is further explained in Lesson 10.

PLIMSOLL MARK This mark indicates the limit to which a ship may be loaded. It derives its
name from Mr. Samuel Plimsoll, a British politician who strongly advocated measures being
taken to cease the practice of loading vessels at the discretion of the master. In 1876, this action
brought about the desired result and the Merchant Shipping Act was amended accordingly.

PORT Means a protected area within which ships are loaded with and/or discharged of cargo.

PORT CHARGES General term which includes charges and dues of every nature assessed
against the vessel or its cargo in a port. It usually includes harbor dues, tug boat charges, pilotage
fees, custom house fees, consular fees, wharfage, dockage on the vessel etc.
PORT CHARTER Under a port charter, when a vessel has agreed to go to a specific port, a
vessel is an arrived ship only when the following conditions have been met:

1. She is commercially within the port.

2. The vessel is ready to load or discharge.

3. The prescribed notice of readiness has been given by the master.

From the shipowners standpoint, it is advisable to include in the charter the phrase whether in
berth or not in order to preclude any misunderstanding as to whether it is a berth or port charter.
This is particularly important with respect to the subsequent calculation of laytime.

PREPAID FREIGHT Under common law the owners of a vessel are only paid freight upon
delivery of the cargo to the discharge port. Any payment prior to that (and at least partial
payment before that is now customary for dry cargo vessels) is prepaid.

PROMPT (VESSEL) In dry cargo chartering, a ship that will be available within two weeks.
In tanker chartering, a ship that is available within seven days. (Contrast the term spot).

PROTECTION AND INDEMNITY A mutual insurance company that insures an owners

RUNNING DAYS 24 hour days which follow one immediately after the other and include
Sundays and Holidays.

SAFE BERTH A berth which, during the relevant period of time, the ship can reach, remain
at and depart from without, in the absence of some abnormal occurrence, being exposed to
danger which cannot be avoided by good navigation and seamanship.

SAFE PORT A port which, during the relevant period of time, the ship can reach, enter,
remain at and depart from without, in the absence of some abnormal occurrence, being exposed
to danger which cannot be avoided by good navigation and seamanship.

SEASONAL SUMMER ZONE Area in which during stated period(s) of the year vessels may
load only down to their summer marks.

SEASONAL TROPICAL ZONE Area in which during stated period(s) of the year vessels
may load only down to their tropical marks.

SHIP CHANDLER A merchant who supplies vessels with all kind of stores.

SHORT TON A unit of weight of 2000 pounds (also known in U.S.A. as net ton).

SIDE WHARFAGE Fee assessed vessel for lying alongside a wharf.

SKIN The hull plating of a ship.

SPOT (VESSEL) In both dry cargo and tanker chartering a ship that

is immediately available for employment.

SPOUT TRIM For grain and other bulk cargoes such as phosphate rock, potash, sulphur, etc.,
trimming is usually accomplished with the loading spout. For this purpose the spout may be
fitted with a spoon or a power driven slinger. If the agreement is that charterers/shippers will
spout trim, then any additional trimming and/or leveling or filling required, done manually or
by mechanical means, such as bulldozers, is for the vessels account.

STABILITY The ships capacity to return to an original position after being deflected from it
by an outside force.

STEM An age old but still widely used term, thought to be derived from: subject to enough
merchandise. See SUBJECT STEM.

STOWAGE FACTOR This expression indicates the number of cubic feet actually occupied
by one ton of a commodity, including an allowance for broken stowage. The stowage factor
depends upon the type of goods being carried.

STRAPPING Applies to grain cargoes in non self-trimmers, or sometimes to partially filled

STRONG MARKET Owners market.

SUBJECT (OFFER) Conditional offer which, if accepted, will result in binding contract only
when and if the condition is satisfied in which case the subject is said to be lifted or
removed, or in order.

SUBJECT APPROVAL OF CHARTERERS Condition inserted in negotiations by owners

and frequently used when charterers are unnamed or not well known.

SUBJECT APPROVAL OF OWNERS Condition inserted in negotiations by charterers,

and used principally when time chartered owners or new owners with no performance record are
involved, giving charterers time to check their financial status.

SUBJECT (VESSEL) OPEN (OR UNFIXED) Many brokers and principals consider the
terms
synonymous, however the distinction can be made that, while the subject unfixed condition is
removed if the vessel is not fixed to others at the time specified for removal of the subject (or, if
no time is specified, at the time of acceptance), the subject open condition is only removed if
the vessel is not only not fixed but also not under offer.

SUBJECT STEM Charterers obtain time to check and confirm that the correct size cargo can
be made available at loading port at the contracted time.

SUBLET Customarily, in a voyage (or time) charter, the charterers have the right of
subletting the whole or part of the vessel or of the period; however, they remain responsible to
the shipowner for the fulfillment of the original charter.

SUBSTITUTE See M/S___or substitute.

SUEZ CANAL TONNAGE See Panama Canal Tonnage.

SUMMER ZONE Area where vessel may load only down to her summer loadline.

SUNDAYS AND HOLIDAYS EXCEPTED (SHEX) A frequently used trading and charter
party

phrase meaning that Sundays and Holidays are

excepted (excluded) from laytime.

SUNDAYS AND HOLIDAYS INCLUDED (SHINC) A frequently used trading and charter
party phrase

meaning that Sundays and Holidays are included in laytime.

TANKTOP Plating forming the top of the double bottom. Also called inner bottom. In non-
technical terms, it is the flat surface at the bottom of the hold onto which the cargo is loaded.

TONNE A British word meaning a metric ton. Used for

tanker cargoes in Worldscale.

TOPPING OFF A term most commonly used in the grain trade. A ship can partially load in
one port and top off in another port. For example, in the Great Lakes trade, a ship will load
down to the available Seaway draft in the Great Lakes and complete at a deeper draft point in the
St. Lawrence River or Gulf of St. Lawrence.

TOP WHARFAGE Fee assessed, usually against cargo, for use of the top or floor of an open
or covered wharf. (Who pays for this can be a matter of contention).
TRAMP (VESSEL) The designation commonly used for vessels with no regular employment
whose owners send them wherever they expect to, or can, obtain the most lucrative employment.

TRANSATLANTIC ROUND A term used for a time charter round trip performed

VOYAGE within the Atlantic area. For example: U.S. North of Cape Hatteras or U.S. Gulf to the
Continent and return to the same general area; or the reverse.

TRANSPACIFIC ROUND As above, except the trip is performed within the Pacific area.

TRIM The trim of a vessel is the difference between the drafts forward and aft. If the draft
fore and aft is the same, the vessel is on an even keel.

TRIMMING Leveling of cargo.

TROPICAL ZONE Area where vessel can load only down to her tropical loadline.

ULLAGE The depth of the free space left in tanks above the liquid.

UNDERLAP The period of time between the date of redelivery by time charterers and the
stated period of the covering time charter.

U.S. FREIGHT RATE

AVERAGES (USFRA) Monthly reports issued by Shipping Cost Analysis Corporation, N.Y.,
assessing the average cost of commercially chartered American flag tankers operating in
domestic trades. The averages are quoted as percentages of American Tanker Rate Schedule
Revised for six size ranges of American flag tankers on period and single voyage charters.

WEAK MARKET Charterers market.

WEATHER WORKING DAY A working day or part of a working day during

which it is or, if the vessel is still waiting for her turn, it would be possible to load/discharge the
cargo without interference due to the weather. If such interference occurs (or would have
occurred if work had been in progress), there shall be excluded from the laytime a period
calculated by reference to the ratio which the duration of the interference bears to the time which
would have or could have been worked but for the interference.

WEATHER PERMITTING Means that only the time during which weather actually
prevents working shall be excepted/excluded from laytime (at least with respect to weather
delays).

WHARFAGE Charge assessed against vessel or cargo for use of space on or alongside a
dock. (See also Side Wharfage, Top Wharfage.)
WING TANKS Tanks located along the sides of the ship, usually under the upper deck. When
describing the wing tanks care must be taken in stating whether they bleed (flow directly into the
ships holds) or whether they must be discharged through on-deck hatches. Wing tanks are used
only with free-flowing cargoes, mainly grain. When calculating the cargo availability of the
wings, a general rule is to use between 75/80% of the total cubic capacity of the tanks. The wing
tanks are also used for ballast water.

WINTER ZONE The area in which, between stated dates, vessels may load only down to
their winter loadlines.

WINTER NORTH ATLANTIC The area in which, between stated dates, vessels may

ZONE load only down to their WNA loadlines.

WORKING DAY A day on which work is normally done at the port concerned, and
consequently excludes Sundays (or in Mohammedan ports, Fridays) and Holidays officially
recognized as such.

YORK ANTWERP RULES Rules that define and establish procedures for settling general
average.

You do not have to memorize the following. However, they are important abbreviations.

ABBREVIATI0NS

AA Always afloat

AAAA Always afloat, always accessible

ABT About

ABS American Bureau of Shipping

ADCOMM Address Commission

AFRA Average freight rate assessments

AG Arabian Gulf (used when vessels are proceeding to Arabian ports) (See PG)

API American Petroleum Institute

APS Arrival pilot station

AR American Tanker Rate Schedule-Revised

ARA Antwerp, Rotterdam, Amsterdam

ATDNS Any time day or night shinc

BBB Before breaking bulk

BBL Barrel

BCM Bow to center of manifold

BENDS Both ends

BFC Baltimore Form C Berth Grain Charter Party

BHP Brake horse power

BIMCO Baltic & International Maritime Council, Copenhagen

B/L Bill of lading

B/N Booking note

BNA British North America

BOFFERS or BO (Asking) best offers

BSW Bottom sediment and water impurities in a petroleum cargo

CA Central America (i.e., WCCA, or ECCA depending which side)

CBT Clean ballast tanks

C and F Cost and freight

CHOPT Charterers option

CIF Cost, insurance and freight

COGSA Carriage of Goods by Sea Act

COP Custom of port

COW Crude oil washing

C/P or CP Charter party

CQD Customary quick despatch

CR Cranes

CRISTAL Contract Regarding an Interim Supplement to Tanker Liability for Oil Pollution

DAP Days all purposes (i.e. total time for loading and discharging). Also Di Ammonium
Phosphate, a common fertilizer.

DEL Delivery

DEL/REDEL Delivery and redelivery

DEM Demurrage

DES Despatch

DHD Demurrage half despatch

DHDLTS Demurrage half despatch laytime saved

DO Diesel oil

DOP Dropping outward pilot

DLOSP Dropping last outward sea pilot

DPP Dirty petroleum products

DWAT Deadweight all told

DWCC Deadweight cargo capacity

DWT Deadweight

EIU Even if used

ETA Estimated time of arrival

ETC Estimated time of completion

ETD Estimated time of departure

ETR Estimated time of readiness

FAS Free alongside

FC Full cargo

FCC First class charterers (a commonly used, meaningless phrase, which should be avoided.
Better to say, if you need to keep the name undisclosed: local charterers or a similar phrase).

FD Free discharge

FDD Freight, demurrage and defense (a type of insurance for legal expenses available from a P
and I club)

FEU Forty foot container equivalent units

FHEX Fridays and Holidays excepted (i.e., excluded)

FIO Free in and out

FIOS Free in and out and free stowed

FIOT Free in and out and free trimmed

FL Free load

FMC Federal Maritime Commission, Washington, D.C.

FO Free out; fuel oil; or firm offer (depends context)

FOB Free on board

FONASBA Federation of National Associations of Shipbrokers and Agents, located in

FOW First open water

FW Fresh water

FWAD Fresh water arrival draft

FWDD Fresh water departure draft

GL Gross load
GLESS Gearless describes a ship which lacks the equipment (gear) that could load and discharge
its own cargo.

GO Gas oil (a type of fuel similar to, but usually more expensive than marine diesel oil)

GRT Gross registered ton(s)(nage)

HHDW Heavy handy deadweight (scrap)

HRDS Hampton Roads, VA

HSS Heavy grains, soybeans & sorghums

IFO Intermediate fuel oil

IGS Inert gas system

ILOHC In lieu of hold cleaning

IMO International Maritime Organization (formerly IMCO)

INCOT Including overtime

ITF International Transport Workers Federation

IWL Institute Warranty Limits

LASH Lighter aboard ship (a barge carrying vessel)

LBP Length between perpendiculars

L/C Letter of credit; or laydays/cancelling

LD Load

LDD Leaded

LGM Lawful general merchandise

LNG Liquefied natural gas

LOA Length overall

LOT Load on top

LPG Liquefied petroleum gas

LTS Laytime saved

MARAD Maritime Administration (branch of U.S. Department of Transportation concerned with

MARPOL The International Convention for Prevention of Pollution from Ships 1973 as
modified by the Protocol of 1978

MBT Motor blocks and turnings (types of scrap)

MDO Marine diesel oil

MED Mediterranean (Sea)

MOA Memorandum of Agreement (Contract form used for the purchase and sale of ships.)

MOLOO More or less, quantity in owners option

MT Metric ton (of 2204.6223 pounds or 1000 kilograms)

NAABSA Not always afloat but safely aground

NCB National Cargo Bureau

NDFCAPMOS No deadfreight for charterers account providing minimum quantity supplied

NEWCI Not east of the west coast of Italy

NOR Notice of readiness

NPA National Petroleum Association usually with reference to ASTM D-155 color scale, for
instance undarker than 2.5 NPA, which can be described as extra lemon pale

NRT Net registered ton(s)

NSF Norwegian Sale Form

NVOCC Non vessel owning common carrier

NYPE New York Produce Exchange (Time Charter form)

OBO An Ore/bulk/oil carrying vessel

OBQ Onboard quantity

PANDI Protection and Indemnity (insurance)

PC Part cargo

PG Persian Gulf (used when vessels are proceeding to Iranian ports) (see AG)

PMO Passing Muscat outbound; i.e. exiting the Persian/ Arabian Gulf.

REDWS Rate, extras and demurrage according to Worldscale

REDEL Redelivery

ROB Remaining on board

RO/RO Roll on roll off

SA South America

SB Safe berth

SBM Single buoy mooring used for loading tankers offshore; also soybean meal

SBT Segregated ballast tank

SHEX Sundays and holidays excepted (i.e., excluded)

SSHEX Saturdays, Sundays and holidays excepted

SHINC Sundays and holidays included

SMA Society of Maritime Arbitrators, Inc.

SOLAS Safety of Life at Sea Convention

SP Safe port

ST Short ton (of 2000 pounds)

SW Salt water

SWAD Salt water arrival draft

SWDD Salt water departure draft

TARV Transatlantic round voyage

TBN To be named (or nominated)

TC Time charter

TEU Twenty foot container equivalent units

TIP Taking inward pilot (contrast this to APS, arrival pilot station)

TP Transpacific

TPI Tons per inch (immersion). Contrast TPC, tons per centimeter

TTL Total; The total amount of commission, including address, that an owner must pay under a
charter.

UK United Kingdom

UKAH UK/Continent, Antwerp/Hamburg range

UKBH UK/Continent, Bordeaux/Hamburg range

UKC UK/Continent

UKHH UK/Continent, Havre/Hamburg range

ULCC Ultra large crude (oil) carrier above 320,000 tons deadweight

UNCTAD United Nations Conference on Trade & Development

UND or UD Undarker

UNLDD Unleaded

USAC U.S. Atlantic Coast

USG United States Gulf (a U.S. port on the Gulf of Mexico)

USNH Unites States north of (Cape) Hatteras

UU Unless used

VLCC Very large crude (oil) carrier above 160,000 tons deadweight
VOY Voyage

WCSA West Coast of South America

WIBON Whether in berth or not

WIFPON Whether in free pratique or not

WCCON Whether cleared customs or not

WLTHC (Distance from) waterline to top of hatch coamings, usually in a ballasted condition

W/M Weight or measurement

WP Weather Permitting

WRI War risks insurance

WS Worldscale

WSHTC Worldscale hours, terms, conditions

WSRTC Worldscale rates, terms and conditions

WVNS Within vessels natural segregations

WW Weather working, or worldwide

WWR When where ready (to receive next cargo)

END GLOSSARY

end