COMMON TERMS
FOB
Free on Board. Seller sees the goods "over the ship’s rail" on to the ship which is arranged and paid for by the buyer.
FREE IN, OUT, STOWED
If a freight rate is quoted on FIOS basis, it means that the shippers are responsible for and bear the cost of the loading, discharging and stowing charges. The ship is responsible for and bears the cost of bringing in the vessel to port, the cost of pilotage, the cost of tug, etc. The loading and discharging rates are a worry only to the shipper and this is one of the things about which a shipper has to think carefully. If the vessel overstays the intended period, the shipper has to pay demurrage.
Free In/Out and Trimmed
As per FIOS but includes trimming, e.g. the leveling of bulk cargoes. FIOS includes sea freight, but excludes loading/discharging and stowage costs.
Free In and Out Stowed and Trimmed
Charterer pays for cost of loading/discharging cargo, including stowage and trimming.
FREE IN, FREE OUT
The shippers are responsible for and bear the cost of the loading and discharging. The stowage charges will be covered by the ship.
LINER TERMS HOOK / HOOK
If a freight rate is quoted on LINER TERMS HOOK / HOOK basis, it means that the ship is responsible for and bear the cost of the loading, discharging and stowing charges. The loading and discharging rates are a worry only to the ship.
The Shipper/Receiver arranges for delivery or receipt of cargo to/from directly under ships hook. Shore-based stevedoring remains the responsibility of the shipper/receiver.
A shipper, therefore, has to consider carefully when signing a contract and should know that costs just before the goods are loaded (or just before the ship’s crane’s hook lifted it – so to speak) or just after they are discharged (or just after the ship’s crane’s hook released it – so to speak) are for his/her account.
Free In Liner Out
The shippers are responsible for and bear the cost of the loading; the ship is responsible for and bears the cost of the discharging.
Liner In Free Out
The shippers are responsible for and bear the cost of the discharging; the ship is responsible for and bears the cost of the loading.
These terms may be used in different combinations and to be absolutely sure of all liabilities, it is always advisable to request that terms clearly and concisely indicate what is/isn’t included in your particular contract - in layman’s terms.
OTHER TERMS
The following terms can be encountered in times of chartering, booking cargoes, receiving shipping notes, etc. Only what are essential in the context of Ethiopian business is put here. However, the list may not be inclusive of all the terms that are essential to the Ethiopian context and hence the terms will be updated from time to time.
| ABT | About |
| ADDENDUM | Additional chartering terms at the end of a charter party |
| AFFREIGHTMENT | the hiring of a ship in whole or part |
| AGW | All Going Well |
| ANCHORAGE | When a vessel is near a port or coast (in a suitable place for anchorage) laying anchors and not sailing (either for purpose of repairs or waiting for clearance/ space availability from the port). |
| A/S | Alongside |
| ASPW | Any Safe Port in the World |
| ATDNSHINC | Any Time Day/Night Sundays and Holidays Included: Such Kind of clauses are inserted in charter parties or shipping contracts to indicate the time/period the vessel will be loading or discharging |
| ATUTC | Actual Times Used to Count |
| BAF (Bunker Adjustment Factor) | A Fuel Surcharge expressed as a percentage added or subtracted from the freight amount, taking into account the change of price for bunkers (fuel oil). |
| BALE CAPACITY | Cubic capacity of a vessel’s holds to carry packaged dry cargo such as bales/pallets |
| BALLAST | Heavy weight, often sea water, necessary for the stability and safety of a ship which is not carrying cargo |
| BALLAST BONUS | Compensation for relatively long ballast voyage |
BAREBOAT/ Demise Charter |
The owner gives ‘possession’ of the ship to the charterer and the charterer hires its own master and crew. Charterers take over all responsibility for the operation of the vessel and expenses for the duration. |
| BDI | Both Dates Inclusive |
| BENDS | Both Ends (Load & Discharge Ports) |
| BI | Both Inclusive |
| BIMCO | The Baltic and International Maritime Council |
| BL (Bill of Lading) | A document signed by the carrier which acts as a Contract of Affreightment, a receipt and evidence of title to the cargo. The BL in many cases is a negotiable document. |
| BN | Booking Note |
| BOB | Bunker on Board |
| BOFFER | Best Offer |
| BROB | Bunkers Remaining on Board |
| BUNKERS | Name given for vessels Fuel and Diesel Oil supplies |
| CAF | Currency Adjustment Factor: A surcharge on the freight amount, taking into account the costs that are incurred arising from the constant changes of the exchange rates between the US dollar and other currencies. |
CBM (Cubic Metres) |
used as a means of charging freight especially when a cargo’s volume in cubic meters exceeds its weight in metric tones. |
| CBFT | (or CFT) Cubic Feet |
| CFR or (C&F) Cost and Freight | Seller pays the FOB cost and the freight cost to a nominated port or pace of discharge. |
| CHOPT | Charterers Option |
| CHTRS | Charterers |
| CIF (Cost, Insurance & Freight) | Seller pays all these costs to a nominated port or place of discharge. |
| COB | Close of Business |
| COBLDN | Close of Business London |
| C/SNEE or CONSIGNEE: | Name of agent, company or person receiving consignment |
| COP | Custom of Port |
| CP or C/P | Charter Party |
| CQD (Customary Quick Despatch) | indicates the loading or discharging rate customary at a certain port. That means there is no special obligation to whoever is responsible for the loading and discharge rates as long as they maintain the customary rate. |
| DAPS | Days all Purposes (Total days for loading & discharging) |
| DAMFORDET Damages for Detention | Penalty if cargo is not ready when ship arrives for working (1st day of Laycan). This is not detention which is charged for ships time on delay. |
| DESP Despatch | Time saved, reward for quick turnaround - in dry cargo only |
| DET Detention | (See DAMFORDET) |
| DFRT Dead freight | Space booked by shipper or charterer on a vessel but not used |
| DRAUGHT (or DRAFT) | Depth to which a ship is immersed in water. The depth varies according to the design of the ship and will be greater or lesser depending not only on the weight of the ship and everything on board, but also on the density of the water in which the ship is lying (sea water is denser than fresh water). |
| DUNNAGE | Materials of various types, often timber or matting, placed among the cargo for separation, and hence protection from damage, for ventilation and, in the case of certain cargoes, to provide space in which the tynes of a fork lift truck may be inserted. |
| DWAT (or DWT) Deadweight | Weight of cargo, stores and water, i.e. the difference between lightship and loaded displacement. |
| ETA | Estimated Time of Arrival (of a ship at a certain port) |
| ETC | Estimated Time of Completion (of loading or discharging of a ship at a certain port) |
| ETD | Estimated Time of Departure (of a ship from a certain port) |
| ETS | Estimated Time of Sailing (of a ship from a certain port) |
| EXW (Ex Works) | The buyer pays for the cost of the goods, the transportation from the factory (hence ex works) and the insurance. In other words, the seller’s responsibility ends at his own factory/warehouse. |
| FENDER | A cushion (like old tires), placed between ships, or between a ship and a pier, to prevent damage |
| FEU | Standard 40’ Container (or Forty Equivalent Unit) |
| FHEX | Fridays/Holidays Excluded |
| FHINC (Fridays/Holidays Included) | Such Kind of clauses are inserted in charter parties or shipping contracts to indicate the time/period the vessel will be loading or discharging. (The ‘Fridays’ clause is especially applicable in Muslim countries where Friday is a holiday instead of Sunday) |
| FME | Force Majeure Excepted |
| FOB | Free on Board. Seller sees the goods "over the ship’s rail" on to the ship which is arranged and paid for by the buyer. |
| FORCE MAJEURE | Clause limiting responsibilities of the charterers, shippers and receivers of cargo. |
| FYG | For Your Guidance |
| FYI | For Your Information |
| GNCN Gencon | (GENERAL CONDITIONS) |
| GRT | Gross Registered Tonnage |
| GSB | Good, Safe Berth |
| GSP | Good, Safe Port |
| HA | Hatch (See Hold) |
| HMS | Heavy Metal Scraps |
| HO (Hold) | A compartment below deck in a large vessel, used solely for carrying cargo |
| IMDG | International Maritime Dangerous Goods Code |
| IMO | International Maritime Organisation |
| INTERMODAL | Carriage of a commodity by different modes of transport, i.e. sea, road, rail and air within a single journey |
| ITINERARY | Route, Schedule |
| KNOT | A measurement of speed equal to one nautical mile (1.85200 kilometers) per hour |
| LASH | To hold goods in position by use of Ropes, Wires, Chains or Straps etc. |
| LAYCAN or Laycan | (Layday Cancelling Date) |
| LAYTIME | Time at Charterers disposal for purpose of loading/discharging |
| L/C | Letter of Credit |
| LEEWARD | The direction away from the wind. Opposite of windward |
| LEEWAY | The sideways movement of the ship caused by either wind or current |
| LOI | Letter of Indemnity |
| LS (or LUMPS) Lumpsum Freight | Money paid to Shipper for a charter of a ship (or portion) up to stated limit irrespective of quantity of cargo |
| LSD | Lashed Secured Dunnaged |
| MANIFEST | Inventory/list of cargo on board |
| MT | Metric Tonne (i.e. 1,000 kilos) |
| NOR | Notice of Readiness (such as given by the master of a ship to indicate that his ship is ready to enter a port) |
| P&I | Protection and Indemnity Insurance |
| PCT | Percent |
| PERDIEM | By the Day |
| PER SE | By Itself |
| PORT | The left side of a ship looking forward. Also a harbor |
| PWWD | Per Weather Working Day |
| SEAFREIGHT | Costs charged for transporting goods over the sea. This does not cover haulage or loading/discharging costs but the sea transport only. |
| SEAWORTHINESS | Statement of condition of the vessel (valid certificates, fully equipped and manned etc.) |
| SF (Stowage Factor) | Cubic space (measurement tonne) occupied by one tonne |
| 1,000 kgs of cargo | this is useful when calculating the freight to be paid, as freight is usually quoted as USD (amount)/ WM, which means the stated amount per weight or measurement is whichever is higher. |
| SHINC | Sundays/Holidays Included |
| SHEX | Sundays/Holidays Excluded |
| SSHEX | Saturdays, Sundays, Holidays Excluded |
| SSHINC (or SATSHINC) Saturdays, Sundays, Holidays Included | Such Kind of clauses are inserted in charter parties or shipping contracts to indicate the time/period the vessel will be loading or discharging. |
| SOC | Shipper Owned Container, this is mentioned when quoting freights. If it’s SOC, the freight is usually less. |
| STABILITY | It is very important that a vessel is stable in all aspects at all times. When cargo is loaded or discharged, the stability is monitored taking into account the weight and position of cargo within the vessel. |
| STARBOARD | Right side of a ship when facing the front or forward end. |
| STEM | Subject to Enough Merchandise (Availability of cargo). |
| SUB | Subject (to). Depending upon as a condition |
| SUPERCARGO | Person employed by a ship owner, shipping company, charterer of a ship or shipper of goods to supervise cargo handling operations. |
| TBN | To Be Named / To Be Nominated |
| TC | Time Charter - Owners agree to hire a particular ship for a set length of time and provide technical management, crewing etc. |
| TEU | Standard 20' Container (or Twenty Equivalent Unit) |
| WOG | Without Guarantee |
| WP (Weather Permitting) | That time during which weather prevents working shall not count as laytime |
