A tanker size range defined by Natural Mining 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.
The ship’s fuel.
Transport of goods between two ports or places located in the
same country, often restricted to domestic carriers.
Bulk ship size range defined by Natural Mining as 100,000 dwt or
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.
Cargo owner or another person/company who hires a ship.
Transport contract between shipowner and shipper of goods.
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
Clean oil
Refined oil products such as naphtha.
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
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.
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.
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.
Vessels of under 2,500 teu which distribute containers
regionally between hub ports.
A Forward Freight Agreement is a cash contract for differences
requiring no physical delivery based on freight rates on
standardised trade routes.
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.
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 Natural Mining as
10-40,000 dwt and 40-60,000 dwt.
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.
Large Gas Carrier. Vessel defined by Natural Mining as 40,000 –
60,000 cbm.
Liquified Natural Gas.
Liquified Petroleum Gas.
Memorandum of agreement.
Oil, Bulk, Ore carrier (see Combination carrier).
Oil tanker
Tanker carrying crude oil or refined oil products.
Bulk ship size range defined by Natural Mining 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
Post fixture
Operational administration of a vessel once employed.
Product tanker
Tanker that carries refined oil products.
A vessel capable of handling refrigerated cargoes such as meat,
fish and fruit.
An abbreviation for roll-on roll-off, describing vessels where
vehicles drive onto and off of the vessels.
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.
A tanker size range defined by Natural Mining as 120,000-200,000
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.
Imperial/Metric ton of 2,240 lbs/1,000 kilos (2,204 lbs).
Ultra Large Crude Carrier. Tanker of more than 320,000
Vacuum gas oil
Similar to fuel oil.
Very Large Crude Carrier. Tanker between 200,000 and 320,000
Very Large Gas Carrier. Vessel defined by Natural Mining 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