BALLAST
Amount of unpaid cargo carried in order to provide sufficient weight to keep a ship stable. For tankers, normally water.
BALLAST LEG
Voyage with no cargo on board, to position a ship for the next load port or dry- docking.
BALLAST TANK
Tank that can be filled with ballast, to provide stability for the ship.
BAREBOAT CHARTER (B/B)
An arrangement involving the hiring of a ship, under which the party that hires the ship covers crew costs and all other operating expenses, including docking and maintenance, in addition to all voyage-related costs. On its return, the ship shall be in the same condition as when delivered, normal wear and tear expected.
BARGING
Transfer of cargo to/from a ship from/ to a barge.
BROKER
An intermediary in the process of negotiating freight contracts between owners and charterers, the sale and purchase of ships and similar transactions.
BUNKERS/BUNKERING
Engine fuel, to power a ship’s engines. Bunkering involves taking bunkers on board.
CBM
Cubic metre, volume measurement = 1 metre high x 1 metre wide x 1 metre deep = 1m3 = 1,000 litres.
CHARTER PARTY (C/P)
Agreement between a ship owner and a charterer, outlining terms and conditions governing the transaction. The agreement may be for one or several voyages, or for a certain period of time.
CHARTERER
The party hiring and paying for ships or ship space. This may be the cargo owner, an intermediary or the receiver of the cargo.
CLASSIFICATION SOCIETY
Independent, non-governmental organisation, e.g. DNV GL, which checks and verifies that the technical condition, the safety and quality of a ship complies with the classification society's own rules, as well as those of national authorities.
COATING
Paint protecting the inside of a ship’s tanks. Usually epoxy- or zinc-based paints.
CONTRACT OF AFFREIGHTMENT (COA)Agreement between ship owner/operator and charterer, setting the terms for transportation of given quantities of cargo, during a given period of time.
CO2
Carbon dioxide, a colourless, odourless, incombustible gas present in the atmosphere and formed during respiration, combustion and organic decomposition.
DEADWEIGHT TONNE (DWT OR TDW)Measure of the weight-carrying capacity of the ship. The total dwt is the weight of the ship and the cargo the ship may carry over and above bunkers, fresh water, spare parts etc.
DEEP-SEA (GLOBAL) TRADE
Sea-borne trade along intercontinental trade routes.
DEMURRAGE
Compensation paid by the charterer, supplier or receiver of the cargo for time spent during port call in excess of the lay-time stipulated in the Charter Party for loading/discharging operations.
DETERGENTS
Substances used for tank cleaning.
DOUBLE HULL
Ship design with an inner and an outer hull, to enhance safety by allowing leakages to be contained in the event of potential groundings or collisions. The space between the inner and outer hull may also be used as ballast tank.
DRY-DOCK
Putting a ship into dry-dock for inspection and repairs of underwater parts, and painting of the ship bottom. Usually carried out every 2. to 5 years.
EEOI – ENERGY EFFICIENCY OPERATIONAL INDICATOR
Gramme CO2 emitted per tonne cargo transported one nautical mile.
FREIGHT RATE
Agreed price for transportation, stipulated either per metric tonne of cargo, cubic metre of cargo or as a lump sum for the total cargo.
G/TNM
Gramme per tonne nautical mile.
IMO
International Maritime Organisation, the international UN advisory body on transportation by sea.
INORGANIC CHEMICALS
Chemicals whose molecular structure contains no carbon atoms (other than as part of a carbonate group) and which are derived from sources other than hydrocarbons, such as sulphuric acid, phosphoric acid and caustic soda.
ISMC
International Safety Management Code. The first formalised initiative by IMO to provide a universal standard for ships’ safety management systems.
KNOT
Measure of vessel speed. 1 knot = 1 nautical mile per hour ≈ 1.85 km/h.
LIBOR
London Interbank Offered Rate. The average of interest rates estimated by each of the leading banks in London that it would be charged were it to borrow from other banks.
LTIF
Lost-time injury frequency. Number of work-related injuries that make employees unable to work the next workday times one million divided by total number of working hours.
LPG
Liquefied petroleum gas.
MARPOL
The International Conventions governing Marine Pollution Prevention, part of IMO.
M/T
Motor tanker.
MT
Metric tonne.
NH3
Ammonia.
NIS
Norwegian International Ship Register.
NOX
Mono-nitrogen oxides. Nitrogen combined with oxygen to form a variety of compounds.
OECD
The Organisation for Economic Co-operation and Development is an international organisation whose objective is to stimulate economic progress and world trade.
OFF-HIRE
The time a ship is prevented from being gainfully employed for its owner or charterer, e.g. time used for repairs.
OPERATING EXPENSES
Expenses for crew as well as all other expenses directly connected with the running of the ship, including maintenance and insurance.
OPERATOR
A person in a shipping company whose main duties include managing contact between the ship and the charterer, giving instructions to the ship and the port agents concerning stowage, loading and discharging of cargo, and arranging purchase of bunkers, etc.
ORGANIC CHEMICALS
Chemicals containing carbon-based molecules. Often referred to as petrochemicals when derived from hydrocarbon sources such as oil, gas and coal.
PETROCHEMICALS
See organic chemicals.
POOL
Co-operation between several owners supplying ships for a joint operation, where net revenues are pooled and divided according to a pre-determined distribution key.
PPM
Parts per million (1ppm = 0.000001 or 1mg/kg).
SEGREGATION
Division of a ship’s cargo space to allow different cargoes being kept completely segregated during the entire voyage, including during loading and unloading.
SHIP MANAGEMENT
Technical administration of a ship, including services such as technical operation, maintenance, crewing and insurance.
SHORT-SEA (REGIONAL) TRADE
Sea-borne trade within a particular trading area (i.e. not intercontinental).
SOLVENTS
Liquids that can dissolve other substances.
SOx
Sulphur Oxides (SO), react with moisture in the air to form sulphuric acid.
SPOT RATE
Cargo freight rate not governed by a contract of affreightment, usually based on the current market level.
STCW
International convention on standards of training, certification and watchkeeping of seafarers.
TIME-CHARTER (T/C)
An arrangement for the hiring of a ship complete with crew against a fee, payable as a specific sum per time period. The party that hires the ship pays for bunkers, port and canal charges and any other voyage-related costs.
TIME-CHARTER EARNINGS
Gross freight revenues minus voyage costs divided by number of trading days, usually expressed in USD per day.
TONNE
Gross registered tonne is a volume of 100 cubic feet (2.83 cubic metres). Gross registered tonnage is basically the volume of the ship’s closed areas, excluding the bridge, the galley and a few other areas. Net registered tonnage is the gross tonnage less volumes needed for the operation of the ship (deck storage room, engine room etc.), i.e. the volume available for cargo.
TONNE OR METRIC TONNE
1,000 kg.
TRADE
Geographical area where a ship mainly trades.
TRADING DAYS
Days a ship is not off-hire.
TRANSHIPMENT
Transfer of cargo from one ship to another, e.g. from a ship within global trade to a coaster or barge within regional trade bound for final destination.
VOYAGE CHARTER
Agreement for the transportation of cargo from the port(s) of loading to the port(s) of unloading. Payment is normally per tonne of cargo, and the ship owner pays for bunkers, port and canal charges and other voyagerelated costs.
VOYAGE EXPENSES
Expenses directly relating to the voyage, such as bunkers, port charges, canal dues, etc.