Some More Shipping Terms!

Marine Insurance Clauses A&C:Clauses A covers most risks of losses during transit as opposed to Clauses C which is a restricted form of cover.

Mates Receipts: A document that is issued by the Mate of the vessel as the cargo is loaded on board. The Mates Receipt will usually contain remarks regarding the condition of the cargo or its packaging. Traditionally, Mate's Receipts form the basis of the bill of lading which is subsequently issued.

Mother Vessel: Typically, a large container or unitized load vessel which services the main hub (large transhipment ports) of a liner service. See feeder vessel.

Multi modal: Bill of lading, similar to through transport/combined transport bill of lading. It covers the transport of goods through different modes of transport such as rail, truck, ship, for example.

Notify Party: Is the party who needs to be notified regarding the delivery of the cargo. Usually, the bank will be the consignee and the notify party will be the bank's client i.e. the receiver of the cargo.

NVOCC - Non Vessel Owning Common Carrier: A party who takes on the liabilities of the carrier, but who does not own or operate the vessel. Sometimes described as a contractual carrier as opposed to a physical carrier.

On Deck Stowage: A clause appearing in a bill of lading or charter party, which states the cargo will be loaded on the deck of the vessel is usually carried at the cargo owner's risk. Cargoes that might get damaged because of waves washing over the decks, sea spray and other elements of the weather should not be carried on deck. Cargo owners may have difficulty exercising a claim for damage of the cargo against the carrier for an on-deck stowed cargo.

Owners Bill of Lading: A bill of lading issued by, or on behalf of, the Master or owner of the vessel. This makes the owner directly responsible for the carriage of the cargo. This is best from a cargo owner's point of view.

Panamax: A vessel of the optimum size for transiting the Panama Canal. Usually able to carry from 55,000 to 80,000 tonnes of cargo.

Part Shipment: Where the total cargo may be split into smaller parts and carried on different vessels or voyages.

P & I Club - (Protection and Indemnity Club): The ship owner's liability underwriter, which usually covers liabilities such as damage to or loss of the cargo in transit. Also the organization which will, in some cases, post financial bonds to release a vessel from arrest. Often, a Club will issue a letter of guarantee, which is generally considered as good as a bank guarantee.

Place of Receipt: The place (usually the container yard) where the cargo has been received by the carrier for shipment.

Port of Loading: The port at which the cargo is loaded on board the ship.

Port of Discharge: The port where the cargo is discharged from the vessel.

Port of Delivery: The port where the cargo is delivered by the carrier to the consignee or to the bill of lading holder. This could be an inland container terminal.

Ro-Ro: (Roll on, Roll off): A vessel that is designed for trailers to be driven off the ship through ramps on the side, bow or stern of the vessel.

Said to Contain: A clause appearing on a bill of lading stating that the shipowner does not know precisely what is inside the container. It indicates that the description of the cargo appearing on the bill of lading is what the shipper declared as being its contents. Shipowners have no liability if the contents of the container at the point of delivery are different to those described on the face of the bill of lading provided there is no evidence that the goods were stolen in transit.

Seal and Seal Numbers: The seal is usually a strip of metal or plastic which fits around the locking bars in such a way that if the container is opened the seal will have to be broken. It should therefore be a visable sign of the container being broken into. The seal number is a set of numbers or alphabets identifying the seal. This information often appears on a bill of lading. A container with its original seal intact is an indication that the container has not been breached in transit. At least that is the theory - IMB experts know of numerous ways in which a container can be breached without any sign that the original seal has been broken into or interfered with.

Shipper:The party who ships the cargo - usually, but not always, the seller or exporter.

Shippers load stow and count: Similar to "Said to Contain". With the insertion of this clause on the bill of lading, the shipowners try to avoid liability for any damge that may occur, as the loading, stowage or the number of packages inside the container is the responsibility of the shippers, provided there is no evidence the loss or damage occured in transit.

Stowage Plan: A diagram that indicates where the different cargoes are loaded on board a ship.

Suezmax: A ship designed with optimum dimensions to transit the Suez Canal, typically between 120,000 and 200,000 tonnes deadweight.

Tanker: A vessel designed to carry bulk liquid cargoes. There are different types of tankers such as chemical carriers, vegetable oil carriers, product tankers and crude carriers. Crude carriers carry crude oil. More refined oil products are carried in product carriers. Chemical tankers have specially lined tanks to carry chemicals. Vegetable oil tankers are designed to carry products such as palm oil and other vegetable oils. It is unusual to load an oil cargo on a tanker not designed for the trade. Tankers do not carry dry bulk or general cargo.

Time Charter: An agreement by which the shipowner agrees to hire his vessel to a charterer for an agreed period of time, and is paid hire by the day, usually fourteen days in advance. In many time charterparties, a charterer is authorized by the shipowner to sign and release bills of lading on his behalf.

Through Transport Bill of Lading: Similar to a Multi Modal or a Combined Transport Bill of Lading. The liability of the carrier remains for the complete chain of transport covering many different modes such as truck, rail and ship.

Transhipment: Where a cargo is discharged from one vessel and subsequently loaded on to a different ship for transport to the destination. Some letters of credit will specifically not allow for transhipment because transhipment might damage the cargo. Transhipment is a custom of the containerized trade where a container may be loaded on a feeder ship, then on to a mother ship and back to a feeder ship before it reaches its destination.

VLCC (Very large Crude Carrier): A large crude oil tanker usually capable of carrying over 200,000 tonnes od crude oil.

Voyage charter: An agreement by which the shipowner agrees to let his vessel to the charterer for a voyage, in return for which the charterer pays the shipowner freight on a lumpsum or per tonne basis. In a voyage charter party the shipowner usually retains greater control over the issue of the bill of lading.

Warehouse to Warehouse: Associated with insurance policies indicating that the insurance policy covers loss or damage to the cargo form the shippers' warehouse to the consignees' warehouse.

ULCC (Ultra large Crude Carrier): A crude carrier which is capable of carrying, usually over 300,000 tonnes of cargo.

Under Deck Stowage: Cargoes which are loaded in the holds of the vessel, under deck, protected from the sea and weather.