|Glossary of Shipping Industry Terms
The following is a set of definitions for shipping terms which are used throughout this Prospectus:
- Bulk Carrier: A single-deck ocean going vessel designed to carry dry bulk commodities such as grain, coal and iron ore.
- Bulk Cargo: Homogeneous unpacked dry cargo such as grain, iron ore or coal. Any commodity shipped in this way is said to be in bulk.
- Charter: A contract to either provide a ship (time charter) or to carry a cargo for a fixed fee (voyage charter).
- Time Charter: The hiring of a vessel from a shipowner for a period of time. Under this type of contract, the Shipowner places his ship, with crew and equipment, at the disposal of the Charterer, for which the Charterer periodically pays Hire Money. Subject to any restrictions in the contract, the Charterer decides the type and quantity of cargo to be carried and the ports of loading and discharging. The Charterer is responsible for supplying the vessel with bunkers and for the payment of cargo handling operations, canal and port charges, pilotage, towage and ships agency. The technical operation and navigation of the vessel remains the responsibility of the Shipowner. A vessel hired in this way is said to be on Time Charter. Such periods can vary from the anticipated time necessary to perform a specific voyage (e.g. two months), short term time charters; a number of voyages in succession (e.g. six to nine months), medium term time charters; or a number of years, long term time charters.
- Voyage Charter: Contract of carriage in which the Charterer pays for the use of a vessels cargo space for one, or sometimes more than one, voyage. Under this type of charter, the Shipowner pays all the operating costs of the vessel (including bunkers, canal and port charges, pilotage, towage and ships agency) while payment for payment for port and cargo handling charges are the subject of agreement between the parties. Freight is generally paid per unit of cargo, such as a ton, based on an agreed quantity, or as a lump sum irrespective of the quantity loaded. The terms and conditions of the contact are set down in a document as a Charter-Party. A ship chartered in this way is said to be on Voyage Charter.
- Contract of Affreightment: A contract between a cargo shipper and carrier for the transport of multiple cargoes over a period of time. Contracts are individually negotiated and usually include cargo description, quantities per shipment and in total, load and discharge ports, freight rates and duration of the contract.
- Deadweight Tons (DWT): The cargo carrying capacity of a vessel, including fuel oil, stores and provisions.
- Free Discharge: Expenses of discharging cargo are for the charterers account.
- Free In And Out: Expenses of loading and discharging cargo are for the charterers account.
- Handy-size Bulk Carriers: Bulk Carriers of 25.000 to 40.000 DWT.
- Panamax Bulk Carriers: Bulk Carriers of 40.000 to 80.000 DWT, of maximum width capable of passing through the Panama Canal.
- Capesize Bulk Carriers: Bulk Carriers of 100.000 to 160.000 DWT, too large to navigate the Panama Canal, a.k.a. Capers
- Classification Societies: Det Norske Veritas (DNV), American Bureau of Shipping (ABS), Nippon Kaiji Kyokai (NKK), Lloyds Register (LR), Registro Italiano Navale (RINA), Germanischer Lloyd (GL), Korean Register of Shipping (KRS), Bureau Veritas (BV), China Classification Society (CCS), Polshi Rejestr Statkow (PRS), Hellenic Register of Shipping.
- On Hire Day: Each day on which a vessel is in all respects capable of performing its functions under the relevant Time Charter.
- Spot Cargo Market: The market for immediate transportation of cargo from one port to another on a fixed fee basis.
- Spot Charter Market: The market for immediate chartering of a vessel on a Dollars-per-day basis.
- Bunker: Space in which fuel for the vessel is stored on board. The expression bunkers denotes the fuel itself.