Glossary

Aframax: A tanker size range defined by Clarksons as between 80,000 and 120,000 dwt.
Ballast voyage: A voyage with no cargo on board to get a ship in position for the next loading port or docking. On voyage the ship is said to be in ballast.
Bareboat charter: The hire or lease of a vessel from one company to another (the charterer), which in turn provides crew, bunkers, stores and pays all operating costs.
Bulk cargo: Unpackaged cargoes such as coal, ore and grain.
Bunkers: The ship's fuel.
Cabotage: Transport of goods between two ports or places located in the same country, often restricted to domestic carriers.
Capesize: Bulk ship size range defined by Clarksons as 100,000 dwt or larger.
Cgt: Compensated gross tonnage. This unit of measurement was developed for measuring the level of shipbuilding output and is calculated by applying a conversion factor, which reflects the amount of work required to build a ship, to a vessel's gross registered tonnage.
Charterer: Cargo owner or another person/company who hires a ship.
Charter-party: Transport contract between shipowner and shipper of goods.
CIF: Cost, insurance and freight. Delivery of goods is the seller's responsibility to the port of discharge. The freight is paid for by the supplier of goods.
ClarkSea Index: A weighted average index of earnings for the main vessel types where the weighting is based on the number of vessels in each fleet sector.
Clean oil: Refined oil products such as naphtha.
COA: Contract of Affreightment. An agreement to transport a defined amount of cargo at an agreed freight rate, with the shipowner choosing the ship.
Combination carrier: Ship capable of carrying oil or dry bulk cargoes, thereby increasing the productivity of the vessel. Typically termed OBO or Ore/Oiler.
Condensate: Naturally occurring substance in oil and gasfields which can be shipped in tankers.
Crude oil: Unrefined oil.
Daily operating costs: The costs of a vessel's technical operation, crewing, insurance and maintenance, but excluding costs of financing.
Demurrage: Money paid to shipowner by charterer, shipper or receiver for failing to complete loading/discharging within time allowed according to charter-party.
Dirty oil: Less refined oil products such as fuel oil.
Dry (market): Generic term for the bulk market.
Dry cargo carrier: A ship carrying general cargoes or sometimes bulk cargo.
Dry docking: To put a vessel into a dry dock for inspection, repair and maintenance. Normally done on a regular basis.
Dwt: Deadweight ton. A measure expressed in metric tons (1,000 kg) or long tons (1,016 kg) of a ship's carrying capacity, including bunker oil, fresh water, crew and provisions. This is the most important commercial measure of the capacity.
Feeder: Vessels of under 2,500 teu which distribute containers regionally between hub ports.
FFA: A Forward Freight Agreement is a cash contract for differences requiring no physical delivery based on freight rates on standardised trade routes.
FOB: Free On Board. Cost of the delivery of goods is the seller's responsibility only up to the port of loading. The freight is paid for by the buyer of the goods.
FOB (estimate): Forward Order Book represents estimated commissions collectable over the duration of the contract as principal payments fall due. The forward order book is not discounted.
FOSVA: Forward Ship Value Agreement. An FFA based product designed specifically for the sale and purchase market.
Freight rate: The agreed charge for the carriage of cargo expressed per ton(ne) of cargo (also Worldscale in the tanker market) or as a lump sum.
Handysize/Handymax: Bulk ship size ranges of ships defined by Clarksons as 10-40,000 dwt and 40-60,000 dwt.
IMO: International Maritime Organisation: a United Nations agency devoted to shipping.
ISM code: International Safety Management code for the safe operation of ships and for pollution prevention as adopted by the IMO.
LGC: Large Gas Carrier. Vessel defined by Clarksons as 40,000 - 60,000 cbm.
LNG: Liquified Natural Gas.
LPG: Liquified Petroleum Gas.
MOA: Memorandum of agreement.
OBO: Oil, Bulk, Ore carrier (see Combination carrier).
Oil tanker: Tanker carrying crude oil or refined oil products.
Panamax: Bulk ship size range defined by Clarksons as 60-100,000 dwt. Strictly speaking the largest ship capable of navigating in the Panama Canal.
Parcel tanker: Tanker equipped to carry several types of cargo simultaneously.
Post fixture: Operational administration of a vessel once employed.
Product tanker: Tanker that carries refined oil products.
Reefer: A vessel capable of handling refrigerated cargoes such as meat, fish and fruit.
Ro-Ro: An abbreviation for roll-on roll-off, describing vessels where vehicles drive onto and off of the vessels.
Shipbroker: A person/company who on behalf of shipowner/shipper negotiates a deal for the transportation of cargo at an agreed price. Shipbrokers also act on behalf of shipping companies in negotiating the purchasing and selling of ships, both second-hand tonnage and newbuilding contracts.
Shuttle tanker: Tanker carrying oil from offshore fields to terminals.
Spot business: Broker commission negotiated and invoiced within the same business year.
Spot market: Short term contracts for voyage, trip or short term time charters, normally no longer than three months in duration.
Suezmax: A tanker size range defined by Clarksons as 120,000-200,000 dwt.
TEU: Twenty foot Equivalent Units. The unit of measurement of a standard twenty foot long container.
Time charter (t/c): An arrangement whereby a shipowner places a crewed ship at a charterer's disposal for a certain period. Freight is customarily paid periodically in advance. The charterer also pays for bunker, port and canal charges.
Time Charter Equivalent (TCE): Gross freight income less voyage costs (bunker, port and canal charges), usually expressed in US$ per day.
Ton/Tonne: Imperial/Metric ton of 2,240 lbs/1,000 kilos (2,204 lbs).
ULCC: Ultra Large Crude Carrier. Tanker of more than 320,000 dwt.
Vacuum gas oil: Similar to fuel oil.
VLCC: Very Large Crude Carrier. Tanker between 200,000 and 320,000 dwt.
VLGC: Very Large Gas Carrier. Vessel defined by Clarksons as more than 60,000 cbm.
Voyage charter: The transportation of cargo from port(s) of loading to port(s) of discharge. Payment is normally per ton(ne) of cargo, and the shipowner pays for bunker, port and canal charges.
Voyage costs: Costs directly related to a specific voyage (eg. bunker, port and canal charges).
Wet (market): Generic term for the tanker market.
Worldscale (WS): An international index of freight for tankers. Worldscale is a schedule of freight rates for a standard ship in US dollars per tonne of oil for an array of oil routes. The rates listed in the table are designated as Worldscale Flat or WS100 and are revised annually.