Glossary of Shipping Terms
ABI-AUTOMATED BROKER INTERFACEA system available to brokers with the computer capabilities and customs certification to transmit and exchange customs entries and other information, facilitating the prompt release of imported cargo.
ABS
American Bureau of Shipping: A U.S.-based private classification, or standards setting society for merchant ships and other marine systems.
AD VALOREM
Latin for "according to the value."(1) An ad valorem duty is an import duty based on the value of an article as defined in the customs law of a particular country, rather than on weight or volume. A percentage of that value is charged, for example, 5% ad valorem. (2) A freight rate set at a certain percentage of the value of an article is known as an ad valorem rate.
ADMEASUREMENT
The confirmed or official dimensions of a ship.
ADMIRALTY COURT
A court having jurisdiction over maritime questions pertaining to ocean transport, including contracts, charters, collisions, and cargo damages.
ADVISING BANK
A bank operating in the exporter's country that handles letters of credit for a foreign bank by notifying the exporter that the credit has been opened in his favor.
AFFREIGHTMENT, CONTRACT OF
An agreement by a steamship line to provide cargo space on a vessel at a specified time and for a specified price to accommodate an exporter or importer who then becomes liable for payment even though he is later unable to make the shipment.
AFT
In, near, or toward the stern of the vessel.
AGENCY AGREEMENT
An agreement whereby the steamship line appoints the steamship agent and defines the specific duties and areas of responsibility of that agent.
AHT (ANCHOR-HANDLING TUG)
Moves anchors and tow drilling vessels, lighters and similar.
AHTS (ANCHOR-HANDLING TUG/SUPPLY)
Combined supply and anchor-handling ship. Seismic ship: Conducts seismic surveys to map geological structures beneath the seabed.
AMIDSHIPS
Generally speaking the word amidships means in the middle portion of a vessel.
ANTI-TRUST EXEMPTION
The immunity from prosecution under the Sherman Act, granted to steamship companies in 1916, in recognition of the special services and value American Flag merchant vessels provide in the defense of the country in time of war.
ARBITRATION CLAUSE
A standard clause to be included in the contracts of exporters and importers, as suggested by the American Arbitration Association. It states that any controversy or claim will be settled by arbitration in accordance with the rules of the American Arbitration Association.
ARTICLES OF AGREEMENT
The document containing all particulars relating to the terms of agreement between the Master of the vessel and the crew. Sometimes called ship's articles, shipping articles.
ASBA
American Shipbrokers Association
ASTERN
A backward direction in the line of a vessel's fore and aft line; behind. If a vessel moves backwards it is said to move astern; opposite to ahead.
AT SEA
In marine insurance this phrase applies to a ship which is free from its moorings and ready to sail.
AUTOMATED BROKER INTERFACE
(See ABI)
AUTOMATED COMMERCIAL SYSTEM (ACS)
The electronic system of the U.S. Customs Service, encompassing a variety of industry sectors, that permits on-line access to information in selected areas.
AUTOMATED MANIFEST SYSTEM (AMS)
The electronic system allowing a manifest inventory to be transmitted to the U.S. Customs Service data center by carrier, port authority, or service center computers.
B
B/B (BREAKBULK)(See Breakbulk Cargo)
B/D
Barrels per day (measure of petroleum production)
B/L (BILL OF LADING)
(See Bill of Lading)
B/S
Bags; bales.
B/S (BUNKER SURCHARGE)
(See BAF)
BACK HAUL (1)
Part or all of the return portion of a route over which a trailer or container has traveled (2) A deviation to move cargo on the return leg of a voyage for the purpose of minimizing ballast mileage and thereby reducing transportation costs.
BACKFREIGHT
The owners of a ship are entitled to payment as freight for merchandise returned through the fault of either the consignees or the consignors. Such payment, which is over and above the normal freight, is called backfreight.
BACKLETTER
Where a seller/shipper issues a 'letter of indemnity' in favor of the carrier in exchange for a clean bill of lading. May have only a limited value. Example: P & I problems.
BAF (BUNKER ADJUSTMENT FACTOR)
An adjustment in shipping charges to offset price fluctuations in the cost of bunker fuel. Also known as a Bunker Surcharge (B/S).
BAGGED CARGO
Various kinds of commodities usually packed in sacks or in bags, such as sugar, cement, milk powder, onion, grain, flour, etc.
BALLAST
Heavy substances loaded by a vessel to improve stability, trimming, sea keeping and to increase the immersion at the propeller. Sea water ballast is commonly' loaded in most vessels in ballast tanks, positioned in compartments right at the bottom and in some cases on the sides, called wing tanks. On a tanker, ballast is seawater that is taken into the cargo tanks to submerge the vessel to a proper trim.
BALLAST BONUS
Compensation for relatively long ballast voyage
BALLAST MOVEMENT
A voyage or voyage leg made without any paying cargo in a vessel's tanks. To maintain proper stability, trim, or draft, seawater is usually carried during such movements.
BALLAST TANK
Compartments at the bottom of a ship or on the sides which are filled with liquids for stability and to make the ship seaworthy. Any shipboard tank or compartment on a tanker normally used for carrying salt-water ballast. When these compartments or tanks are not connected with the cargo system, they are called segregated ballast tanks or systems.
BAREBOAT CHARTER
(1) A charter in which the bare ship is chartered without crew; the charterer, for a stipulated sum taking over the vessel for a stated period of time, with a minimum of restrictions; the charterer appoints the master and the crew and pays all running expenses. See Demise Charter (2) Vessel contracts where charterers take over all responsibility for the operation of the vessel and expenses for a certain period.
BARGE
Flat-bottomed boat designed to carry cargo on inland waterways, usually without engines or crew accommodations. Barges can be lashed together and either pushed or pulled by tugs, carrying cargo of 60,000 tons or more. Small barges for carrying cargo between ship and shore are known as lighters.
BARGE ABOARD CATAMARAN
A way of loading cargo into large barges and then in turn loading the barges into a ship.
BARGE CARRIERS
Ships designed to carry either barges or containers exclusively, or some variable number of barges and containers simultaneously. Currently this class includes two types of vessels, the LASH, and the SEABEE.
BBB
Before breaking bulk. Refers to freight payments that must be received before discharge of a vessel commences.
BEAM
The width of a ship. Also called breadth.
BELLY CARGO
Freight accommodation below the main deck.
BENEFICIAL OWNER
The actual owner of the lading who is using a consolidator
BERTH
The place beside a pier, quay, or wharf where a vessel can be loaded or discharged.
BERTH C/P
Term used in a voyage charter party, e.g. vessel shall proceed to Berth 2 at Falmouth.
BERTH CARGO
When a liner cargo vessel accepts extra cargo to fill the empty space remaining.
BERTH LINER SERVICE
A regularly scheduled steamship line with regularly published schedules (ports of call) from and to defined trade areas.
BERTH OR LINER TERMS
An expression covering assessment of ocean freight rates generally implying that loading and discharging expenses will be for the ship owner's account, and usually applying from the end of the ship's tackle in the port of loading to the end of the ship's tackle in the port of discharge.
BILL OF LADING
A document by which the Master of a ship acknowledges having received in good order and condition (or the reverse) certain specified goods consigned to him by some particular shipper, and binds himself to deliver them in similar condition, unless the perils of the sea, fire or enemies prevent him, to the consignees of the shippers at the point of destination on their paying him the stipulated freight. A bill of lading specifies the name of the master, the port and destination of the ship, the goo4s, the consignee, and the rate of freight.
BILL OF LADING
A document issued by a common carrier to a shipper that serves as:(1) A receipt for the goods delivered to the carrier for shipment. (2) A definition of the contract of carriage of the goods from the port of shipment to the port of destination listed in the bill of lading. (3) Evidence of title to the relative goods. When in order form, a bill of lading is negotiable. (See specific types of Bill of Ladings below)
BILL OF LADING, CLAUSED
A bill of lading which has exemptions to the receipt of merchandise in "apparent good order" noted.
BILL OF LADING, CLEAN
(1) A bill of lading which bears no superimposed clause or notation which expressly declares a defective condition of the goods and/or the packaging (Article 18, Uniform Customs and Practice for Documentary Credits). A bill of lading that contains a clause declaring defective goods is called a Foul Bill of Lading. (2) A bill of lading that is silent as to the place of storage, indicating that the goods have been stowed under deck. (See Bill of Lading, Unclean)
BILL OF LADING, FORWARDER'S
A bill of lading issued by a forwarder to a shipper as a receipt for merchandise that the forwarder will consolidate with cargo obtained from other exporters and ship to his agent at the port of destination. In most cases, the Forwarder's Bill of Lading has legal standing for banking purposes. Also called House Bill of Lading.
BILL OF LADING, FOUL
A receipt for goods issued by a carrier bearing a notation that the outward containers or the goods have been damaged.
BILL OF LADING, INLAND
A bill of lading used in transporting goods overland to the exporter's international carrier.
BILL OF LADING, OCEAN
A document defining the terms and conditions of carriage for transport of cargo by sea freight.
BILL OF LADING, ON BOARD
A bill of lading acknowledging that the relative goods have been received on board for shipment on a specified vessel.
BILL OF LADING, ORDER
A negotiable bill of lading. There are two types:(1) A bill drawn to the order of a foreign consignee, enabling him to endorse the bill to a third party. (2) A bill drawn to the order of the shipper and endorsed by him either "in blank" or to a named consignee. The purpose of the latter bill is to protect the shipper against the buyer's obtaining the merchandise before he has paid or accepted the relative draft. (See also Endorsement in Blank)
BILL OF LADING, RECEIVED FOR SHIPMENT
A bill of lading acknowledging the receipt of goods by a carrier for shipment on a specified vessel. This type of bill of lading is not acceptable under a letter of credit unless it is specially authorized. English law does not regard these bills as a valid tender under CIF contracts because the CIF seller is obligated to ship the goods, and a Received for Shipment Bill of Lading is not considered proof of shipment.
BILL OF LADING, STRAIGHT
A non-negotiable bill of lading whereby the consignee named in the bill is the owner of the relative goods.
BILL OF LADING, THROUGH
A bill of lading that covers transportation by more than one carrier from the point of issue to the final destination (e.g., a bill from New York, via Kurabo, to Pampatar, Venezuela).
BILL OF LADING, THROUGH RAILWAY EXPORT
A bill of lading showing the place of receipt by the carrier at an inland point, with transport to the port of exit accomplished using rail/intermodal connections.
BILL OF LADING, UNCLEAN
A bill containing reservations as to the good order and condition of the goods or the packaging or both. Examples: bags torn,drums leaking, one case damaged, and rolls chafed.
BILL OF SIGHT
A written description of goods given by an importer to a customs officer in the event shipping documents have not arrived in time and the importer wishes to avoid delayed entry charges. When an importer enters goods on a bill of sight, he usually must make a cash deposit covering the estimated amount of duty. When the shipping documents are received and a correct entry is made, the exact amount of duty is levied.
BILLING CARRIER (BILL ROAD)
The carrier performing the first line haul service of the movement. This carrier is responsible for preparing the waybill document.
BLACK CARGO
Cargo banned by general cargo workers for some reason. This ban could be because the cargo is dangerous or hazardous to health.
BOGIE
A frame with wheels on which a container rides, more commonly referred to as a chassis
BONDED WAREHOUSE
A warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.
BOW THRUSTERS
A propeller at the lower sea-covered part of the bow of the ship which turns at right angles to the fore-and-aft line and thus provides transverse thrust as a maneuvering aid.
BREADTH
See Beam
BREAK BULK
The process of assimilating many small shipments into one large shipment at a central point so that economies of scale may be achieved; to commence discharge of cargo.
BREAKBULK CARGO
Cargo which is shipped as a unit (e.g., palletized cargo, boxed cargo, large machinery, trucks, and pre-slung cargo)
BREAKBULK VESSEL
(1) A vessel designed to handle palletized, pre-slung, boxed, and unitized cargo. Holds can be at the open bay or between deck type. Between deck means, the hold can be converted from multi levels to open bay. This type of vessel is usually self-sustaining. (2) A general, multipurpose, cargo ship that carriers cargoes of non-uniform sizes, often on pallets, resulting in labor-intensive loading and unloading; calls at various ports to pick up different kinds of cargoes.
BREAKPOINT
The weight at which freight charges change, e.g., 100 kilos.
BRIDGE
Used loosely to refer to the navigating section of the vessel where the wheel house and chart room are located; erected structure amidships or aft or very rarely fore over the main deck of a ship to accommodate the wheelhouse.
BROKER
A person or firm that establishes a connection between a buyer and a seller. Brokers operate in many fields: insurance, steamship transport, securities, drafts, and other phases of foreign trade. Not only do brokers bring buyers and sellers together, but they help to negotiate and close contracts and agreements between them.
BROKERAGE
Percentage of freight payable to broker (by owners in c/p's) or applicable to sale or purchase.
BULK
Cargo shipped in loose condition and of a homogeneous nature. Cargoes that are shipped unpackaged either dry, such as grain and ore, or liquid, such as petroleum products. Bulk service generally is not provided on a regularly scheduled basis, but rather as needed, on specialized ships, transporting a specific commodity.
BULK CARGO
Loose cargo that is loaded directly into a ship's hold.
BULK CARRIER
There are two types of bulk carriers, the dry-bulk carrier, and the liquid-bulk carrier, better known as a tanker. Bulk cargo is a shipment such as oil, grain, or one which is not packaged, bundled, bottled, or otherwise packed and is loaded without counting or marking.
BULK SOLIDS
Dry cargo shipped in containers, loose and in bulk, without counting or marking.
BUNKERS
Fuel consumed by the engines of a ship; compartments or tanks in a ship for fuel storage.
BUOY
A floating object employed as an aid to mariners to mark the navigable limits of channels, their fairways, sunken dangers, isolated rocks, telegraph cables, and the like; floating devices fixed in place at sea, lake or river as reference points for navigation or for other purposes.
C.