Shipping Terms & Glossary
A comprehensive alphabetical glossary of shipping terms, bulk cargo terminology, and maritime definitions.
B
Bill of Lading
A carrier issues the bill of lading to the shipper as a receipt and document of title. Here are its three functions, its types and a worked coal voyage.
Bunker (Marine Fuel)
What bunkers are in shipping: the fuel types VLSFO, HSFO, MGO and LNG, the IMO 2020 sulphur cap, what bunkering means, and who pays for fuel under voyage and time charters.
D
Deadweight Tonnage
Deadweight tonnage (DWT) is the total weight a ship can carry: cargo, fuel, water and stores. See the formula, a worked example and DWT by ship class.
Demurrage
Demurrage is the daily sum a charterer pays the owner when a ship is held in port past its free time. We work through an example and show how to keep it down.
Dispatch Money
Dispatch money, or despatch, is what the owner pays the charterer when cargo loads or discharges faster than agreed. Here is the formula and a worked example.
Draught / Draft
Draught (draft) is how deep a ship sits below the waterline, down to the keel. See how to read the marks, how air draught differs and why draught limits ports.
F
FIO / FIOS / FIOST
FIO, FIOS and FIOST set who pays to load, stow, trim and discharge a bulk cargo. A side-by-side table and a worked example compare each one with liner terms.
Fixture Recap
A fixture recap is the broker's message that confirms the agreed main terms. It binds both sides once the last conditions clear. An annotated sample follows.
Freight Rate
What a freight rate is in dry bulk shipping: the price of carrying cargo on a voyage charter, quoted in USD per metric ton, and the supply, distance, fuel and port factors that move it.
L
Laycan
Laycan means laydays and cancelling: the window in which a ship must arrive ready to load. See a sample clause, how wide to set it and two worked examples.
Laytime
Laytime is the time a charterer has to load and discharge cargo without paying extra. See the formula, a worked example and how SHEX or SHINC changes the count.
LOA / Beam / Depth
Understanding vessel dimensions: Length Overall (LOA), beam, depth, and how they affect port access and cargo capacity.
Load Line / Plimsoll Mark
The load line, or Plimsoll mark, shows how deep a ship may legally load. See what each mark (S, W, T, F, TF, WNA) means and how it caps a bulk carrier's cargo.
Loading & Discharge Rates
A loading or discharge rate is the tonnes a day agreed for cargo work in port. Cargo divided by the rate gives the days allowed, as two worked examples show.