Glossary


Aframax Tanker
A tanker of 75,000 to 115,000 dwt.
Ballast
A substance, usually water, used to improve the stability and control the draft of a ship. A vessel is said to be “in ballast” when it is steaming without cargo and carrying water as Ballast which is discharged before loading at the next loading port.
Bareboat Charter
Contract or hire of a ship under which the shipowner is usually paid a fixed amount of charterhire for a certain period of time during which the charterer is responsible for the operating costs and voyage costs of the ship as well as arranging for crewing (see Time Charter and Voyage Charter).
Bulk
Unpackaged solid cargo such as coal, ore and grain
Bunkers
Heavy fuel oil used to power a ship's engines.
Charter
The hire of a ship for a specified period of time or to carry a cargo for a fixed fee from a loading port to a discharging port. The contract for a charter is called a charterparty.
Charterer

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The individual or company hiring a ship.
Charterhire
A sum of money paid to the shipowner by a charterer under a time charterparty for the use of a vessel.
Classification Society
An independent society which certifies that a vessel has been built and maintained in accordance with the rules of such society and complies with the applicable rules and regulations of the country of such vessel and the international conventions of which that country is a member.
COA
Contract of Affreightment - quantity contract. An agreement between shipowner and shipper concerning the freight of a defined amount of cargo. The shipowner chooses the ship.
Crude (oil)
Unrefined oil directly from the reservoir.
Daily operating costs
The costs of a vessel's technical operation, crewing and insurance (ex.costs of financing).
Double Hull
Hull construction design in which a vessel has an inner and outer side and bottom separated by void space, usually several feet in width.
Draft
Vertical distance between the waterline and the vessel's keel.
Drydocking
The removal of a vessel from the water for inspection and/or repair of submerged parts.
Dwt

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Deadweight tonne: the maximum weight of cargo and supplies that can be carried by a ship, expressed in long tons (2,240 lbs).
Freight
The price paid to a shipowner for the transportation of a cargo from one specific port to another. Freight often applies to voyage charters.
Freight rate
The agreed freight charge calculated by metric tons of cargo or deadweight ton pr month (See Worldscale).
Gross Ton
Unit of 100 cubic feet or 2.831 cubic meters used in arriving at the calculation of gross tonnage.
IMO
International Maritime Organization, a United Nations agency that issues international standards for shipping.
Knot
A measure of the speed of the vessel. 1 knot = 1 nautical mile per hour, = 1,85 km/h = 1,15 miles per hour
Lay-up
Mooring a ship at a protected anchorage, shutting down substantially all of its operating systems and taking measures to protect against corrosion and other deterioration.
Net revenue/Time charter (t/c) equivalent
Gross freight income less voyage costs (bunker costs, port duties etc.).
Newbuilding
A newly constructed vessel.
Oil-Tanker

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Ship carrying crude oil or refined products. An oil tanker especially built for the transportation of refined oil products, often with inside painted/coated tanks, is called a Product Tanker.
OPA
The United States Oil Pollution Act of 1990.
Operating Costs
The cost incurred by the shipowner during a voyage or time charter, and by the charterer in a bareboat charter, and comprising mainly crew wages and associated costs; insurance (hull and machinery, protection and indemnity cover, etc.); the cost of lubricants and spare parts; repair and maintenance.
Panamax
A vessel of approximately 50,000 to 80,000 dwt, of maximum lenght, breadth and draft capable of passing fully loaded through the Panama Canal.
Petroleum Products
Refined crude oil comprising dirty products (e.g., fuel oil) and clean products (e.g., gasoline and jet fuel).
Protection and Indemnity Insurance
Insurance obtained through a mutual association formed by shipowners to provide liability insurance protection from large financial loss to one member through contributions towards that loss by all members.
Shipbroker
A person/company who on behalf of shipowner/shipper negotiates a deal for the transportation of cargo at an agreed price. Shipbrokers are also active when shipping companies negotiate the purchasing and selling of ships, both second-hand tonnage and newbuilding contracts.
Ship Management

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The technical administration of a ship, including services like technical operation, maintenance, repair, crewing and insurance.
Spot Market
The market for immediate chartering of a vessel. Short term contracts, normally not longer than three months in duration.
Strict Liability
Liability that is imposed without regard to fault.
Suezmax
A vessel of approximately 130,000 to 160,000 dwt, of maximum lenght, breadth and draft capable of passing fully loaded through the Suez Canal.
Tanker
A ship designed for the carriage of liquid cargoes in bulk with cargo space consisting of many tanks. Tankers carry a variety of products including crude oil, refined products, liquid chemicals and liquid gas. Tankers load their cargo by gravity from the shore or by shore pumps and discharge using their own pumps.
Time Charter
Contract for hire of a ship. A charter under which the shipowner is paid charterhire on a per day basis for a certain period of time, the shipowner being responsible for providing the crew and paying operating costs while the charterer is responsible for paying the voyage costs. Any delays at port or during the voyages are the responsibility of the charterer, save for certain specific exceptions such as loss of time arising from vessel breakdown and routine maintenance (see Voyage Charter and Bareboat Charter).
Tonne
A metric tonne of 1,000 kilograms or 2,240 pounds.
Tonne-mile

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Quantity transported multiplied by average voyage distance, which used as a measure of tanker demand.
ULCC
Ultra large crude carrier exceeding 320,000 dwt.
VLCC
Very large crude carrier of approximately 200,000 to 320,000 dwt.
Voyage Charter
Contract for hire of a ship under which a shipowner is paid freight on the basis of moving cargo from a loading port to a discharge port. Normally per ton of cargo. The shipowner is responsible for paying both operating costs and voyage costs. The charterer is typically responsible for any delay at the loading or discharging ports.
Voyage Costs
Bunker costs, port charges and canal dues (or tolls) incurred during the course of a voyage.
Worldscale (WS)
International freight index for tankers. A method of calculation of payment for the transport of oil by ships, for a single or several consecutive voyages. Worldscale is a table giving the amount of USD pr ton oil for a number of standard routes. The rates listed in the table - so-called flat rates termed W100 - are revised annually.