Glossary

Our glossary explains many of the terms that we commonly use.

BALLAST: Amount of unpaid cargo carried in order to provide sufficient weight to keep a ship stable.

BALLAST LEG: A voyage with no cargo on board, to get a ship in position for next load port or dry docking.

BALLAST TANK: A tank filled with water, to provide stability for a ship on a ballast leg.

BARE-BOAT CHARTER (B/B): An arrangement for the hiring of a ship, whereby crew costs and other operating expenses are not included in the agreement for a fee payable as a specific sum per time period. The party that hires
the ship covers crew costs and all other operating expenses, including docking and maintenance, in addition to all voyagerelated costs. On redelivery, the ship shall be in the same good condition as when delivered, normal wear and tear excepted.

BARGING: Transfer of cargo to/from a ship from/to a barge.

BROKER: An intermediary who negotiates freight contracts between owners and charterers as well as the sale and
purchase of ships.

BUNKERS/BUNKERING: Fuel oil, to power a ship’s engine. Bunkering is to take on board bunkers.

CBM: Cubic Metres, volume measurement = 1 metre x 1 metre x 1 metre.

CHARTER PARTY (C/P): Agreement between a shipowner 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 intermeditory or the receiver of the cargo.

CLASSIFICATION SOCIETY: A nongovernmental independent organisation, e.g. Det norske Veritas, controlling and
verifying that the technical condition, the safety and quality of a ship complies with its 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): An agreement between an owner and a charterer setting the terms for
transportion of given quantities of cargo during a given period of time.

DEADWEIGHT TON (DWT or TDW): A 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 that moves on intercontinental trade routes.

DEMURRAGE: Compensation paid by the charterer, supplier or receiver of the cargo for each day or pro rata for time spent in port during loading/discharging, in excess of the laytime stipulated in the Charter Party.

DETERGENTS: A substance used for tank washing

DNVPS: Det Norske Veritas Petroleum Service

DOUBLE HULL: The ship has an inner and an outer hull. Such construction increases the safety during possible
grounding or collision, so that a leakage may be contained. 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 ship bottom. Usually carried out every 2 ½ to 5 years.

FREIGHT RATE: Agreed price for transportation, stipulated either per metric ton of cargo, cubic metre of cargo or as a
lump sum for the total cargo.

IMO: International Maritime Organisation, the international UN advisory body on transport by sea.

INORGANIC CHEMICALS: Chemicals which molecular structure containing no carbon atoms (other than as part of a carbonate group), and 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 the safety management systems of ships.

KNOT: A measure of the speed of the ship. 1 knot= 1 nautical mile per hour, that is ≈ 1.85 km/h.

LIBOR: London Interbank Offered Rate.

MARPOL: The International Conventions governing Marine Pollution Prevention. It is a part of IMO.

M/T: Motor Tanker.

MT: Metric tons

NIS: Norwegian International Ship Register

OECD: Organisation for Economic Co-operation and Development, an information-gathering body. The members
are industrialised countries in Western Europe, North America and the Asia/ Pacific region.

OFF-HIRE: The time a ship is prevented being gainfully employed for its owner or charterer, e.g. time used for repairs.
OPA-90: The US Oil Pollution Act of 1990. An American federal law that imposes strict requirements on shipping
companies, ships and crews when trading in US waters.

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 taking care of the contact between the ship and the charterer, give 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.

PARCEL TANKER: Tanker designed for the transportation of several different segregated cargoes simultaneously.

PETROCHEMICALS: See organic chemicals.

POOL: A co-operation between owners putting their ships into an operation where net revenues are pooled and divided according to a predetermined distribution key.

PPM: Parts per million (1ppm=0.000001 or 1mg/kg)

SEGREGATION: The division of a ship’s cargo space into individual tanks.

SEP: Safety and Environmental Protection, classification system used by Det norske Veritas.

SHIP MANAGEMENT: The administration of a ship, including services like technical operation, maintenance, crewing and insurance.

SHORT-SEA (REGIONAL) TRADE: Seaborne trade that moves within regional trade routes (not intercontinental).

SOLVENTS: A liquid that can dissolve other substances.

SOx: Sulphur Oxides (SOx), react with moisture in the air to form sulphuric acid.

SPOT RATE: Freight rate for a voyage agreed on the basis of 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 the crew for 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 US$ per day.

TON: A gross registered ton is a volume of 100 cubic feet (2.83 cubic meters). Gross registered tonnage is basically the volume of the ship’s closed areas, excluding the bridge, the galley and a few other rooms. 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: The geographical area where a ship mainly trades.

TRADING DAYS: The number of days a ship is not off-hire.

TRANSHIPMENT: Transfer of cargo to/ from a ship from/to another ship. For example, cargo from a ship within global
trade to a ship within regional trade bound for final destination/harbour.

VOYAGE CHARTER: An agreement for the transportation of cargo from the port(s) of loading to the port(s) of discharge. Payment is normally per tonne of cargo, and the ship owner pays for bunkers, port and canal charges and other voyage related costs.

VOYAGE EXPENSES: Expenses directly related to the voyage, such as bunkers, port charges, canal dues, etc.