| Term | Definition |
| ballast bonus |
money payable by time charterer to shipowner at the end of the charter period to compensate for the ballast trip taken from the port of redelivery of the ship to the next port of loading; BB for short |
| bareboat charter |
a type of charter in which the shipowner provides only the ship and gives the charterer complete control, management and operation of the vessel for an agreed leasing period; the charterer has to appoint the crew and pay all operating costs including stores and bunkers; also known as demise charter |
| barratry |
an insurance term which includes every wrongful act committed intentionally by the master or crew resulting in losses to the owners or charterers, e.g. smuggling, concealing stowaways, etc. without owner's consent |
| berth terms |
used in charterparty to indicate whether shipowner or charterer pays for the loading and discharging costs of the cargoes |
| Cesser and lien clause |
clause in a voyage charterparty which stipulates that the charterer's liability ceases once the cargo has been shipped and the owners have a lien on the cargo for freight, deadfreight, demurrage and general average contributions |
| Cesser clause |
clause in a voyage charterparty which stipulates that the charterer's liability ceases once the cargo has been shipped |
| charterparty |
a written contract between shipowner and charterer whereby a ship is hired; all terms, conditions and exceptions are stated in the contract |
| customary despatch |
time allowed for the charterer to load/discharge the cargo at the loading/discharging port; CD for short; also known as customary quick despatch or CQD |
| deadfreight |
a form of compensation payable by the charterer or shipper to the shipowner when the charterer is unable to load the cargo quantity agreed in the charterparty; the amount payable is the loss of freight equivalent to the cargo unavailable |
| demurrage |
fee paid by the charterer to the shipowner when the latter's ship is detained beyond the specified date agreed in the charterparty
opposite of despatch |
| despatch |
compensation paid by shipowner to charterer as a 'reward' when the latter is able to complete the cargo operations in less time than the laytime allowed
opposite of demurrage |
| DOP |
Dropping Outward Pilot, normally used when redelivering at the end of a time charter whereby the handover occurs after sailing from the final port; this wording ensures that the time charterer pays all the expenses involved in the calling at the final port.
Occasionally modified to DLOSP (Dropping Last Outward Sea Pilot) to avoid disputes when more than one pilot is needed to take the vessel to sea, particularly at ports where river pilots take the vessel from the berth and handover to sea pilots on passage. |
| head charter |
original charter in a series of sub-charters, i.e. the charter between the shipowner and the first or head charterer |
| laycan |
a ship chartering term which stands for laydays commencement and cancelling; specifies the earliest date on which laytime can commence and the latest date, after which the charterer can opt to cancel the charterparty |
| laytime |
time allowed by the shipowner to the voyage charterer to carry out the cargo loading and/or discharging operations; laytime may be expressed as a certain number of days or number of tons of cargo loaded/unloaded per day
see average laytime, reversible laytime, non-reversible laytime, all purposes laytime |
| net charter |
charter in which all port and cargo handling charges between the first port of loading after delivery by owners and the last port of discharge before redelivery to owners, will be paid by the charterer; in this case, the freight paid to shipowners is approximately net |
| off hire |
period of time during which a vessel under time charter is unable to meet the requirements agreed between the charterer and shipowner due to some reasons within the control of the latter; in this case, e.g. machinery breakdown, the charterer is not required to pay hire money |
| protecting agent |
agent appointed by shipowners to protect their ship's interests at times when the charterers use their own agents in ports; also known as protective agent |
| reversible laytime |
laytime which allows the charterer the option of adding together the loading and discharging times; in this case, demurrage does not commence until the combined times exceed the total time specified for both operations
opposite of non-reversible laytime |
| shipbroker |
1. one whose business is selling and buying of ships, i.e. sale and purchase broker;
2. one who serves as an intermediary between a shipowner and a shipper or charterer; commission upon successful fixture or fixing of voyage charters comes from the shipowner and not from the charterer |
| slot charter |
voyage charter whereby the shipowner agrees to place a certain nember of container slot (TEU and/or FEU) at the charterer's disposal |
| time charter |
a contract for the hire of a ship or charterparty for a specified period of time; the charterer pays for the bunker fuel, fresh water, port charges, etc. in addition to charter hire |
| waybill |
document which serves as a receipt for the goods shipped and as evidence of the contract of carriage; it is issued by shipping line or shipowner to shipper or charterer |
