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Backhaul
To haul a shipment back over part of a route that it
has already traveled; return movement of cargo, usually opposite from the
direction of its primary cargo destination.
Ballast keel
A heavy keel fitted to vessels to lower the center of
gravity and improve stability.
Ballast tanks
Compartments at the bottom of a ship that are filled
with liquids for stability and to make the ship seaworthy.
Beam
The width of a ship.
Berth
A place in which a vessel is moored or secured; place
alongside a quay where a ship loads or discharges cargo.
Berth term
Shipped under a rate that does not include the cost of
loading or unloading.
Berth dues (or quay dues or dockage)
Charges for the use of a berth. Typically assessed
based on the duration of a vessel’s stay and length overall (LOA).
Bill of lading
A document that establishes the terms of contract
between a shipper and a transportation company. It serves as a document of
title, a contract of carriage, and a receipt for goods.
Bond port
Port of a vessel’s initial customs entry to any
country; also known as first port of call.
Bonded warehouse
A warehouse authorized by customs authorities for
storage of goods on which payment of duties is deferred until the goods are
removed.
Breakbulk
Loose, noncontainerized cargo stowed directly into a
ship’s hold.
Broker
A person who arranges for transportation of loads for
a percentage of the revenue from the load.
Build-operate-transfer (BOT)
A form of concession where a private party or
consortium agrees to finance, construct, operate and maintain a facility
for a specific period and transfer the facility to the concerned government
or port authority after the term of the concession. The ownership of the
concession area (port land) remains with the government or port authority
during the entire concession period. The concessionaire bears the
commercial risk of operating the facility.
Build-own-operate-transfer (BOOT)
A form of concession where a private party or
consortium agrees to finance, construct, own, operate and maintain a
facility for a specific period and transfer the facility to the concerned
government or port authority after the term of the concession. The
ownership of the concession area (port land) vests in the private party or
consortium during the entire concession period and is transferred to the
government or port authority at the end of the concession period. As with
the BOT, the concessionaire bears the commercial risk of operating the
facility.
Bulkhead
A structure to resist water; a partition separating one part of a ship from another part.
Bulk vessel
All vessels designed to carry bulk cargo such as
grain, fertilizers, ore, and oil.
Bunkers
Fuel used aboard ships.
Cabotage
Shipments between ports of a single nation, frequently
reserved to national flag vessels of that nation.
Cargo tonnage
Ocean freight is frequently billed on the basis of
weight or measurement tons. Weight tons can be expressed in terms of short
tons of 2,000 pounds, long tons of 2,240 pounds, or metric tons of 1,000
kilograms (2,204.62 pounds). Measurement tons are usually expressed as
cargo measurements of 40 cubic feet (1.12 cubic meters) or cubic meters
(35.3 cubic feet).
Carrier
Any person or entity who, in a contract of
carriage, undertakes to perform or to procure the performance of
carriage by sea, inland waterway, rail, road, air, or by a combination of
such modes.
Cartage
Intraport or local hauling of cargo by drays or trucks
(also referred to as drayage).
Chassis
A frame with wheels and container locking devices to
secure the container for movement.
Classification yard (also commonly known as a shunting
yard)
A railroad yard with many tracks used for assembling
freight trains.
Cleaning in transit
The stopping of articles (such as farm products) for
cleaning at a point between the point of origin and destination.
Clearance
The size beyond which vessels, cars, or loads cannot
pass through, under, or over bridges, tunnels, highways, and so forth.
Cleat
A device secured on the floor of a container to
provide additional support or strength to a cargo-restraining device, or a
device attached to a wharf to secure mooring lines.
Common carrier
A transportation company that provides service to the
general public at published rates.
Concession
An arrangement whereby a private party
(concessionaire) leases assets from a authorized public entity for an
extended period and has responsibility for
financing specified new fixed investments
during the period and for providing specified services associated with the
assets; in return, the concessionaire receives specified revenues from the
operation of the assets; the assets revert to the public sector at
expiration of the contract.
Conservancy
In some countries, this fee is levied to retain upkeep
of the approaches to waterways and canals.
Consolidation
Cargo consisting of shipments of two or more shippers
or suppliers. Container load shipments may be consolidated for one or more
consignees.
Container
Steel or aluminum frame forming a box in which cargo
can be stowed meeting International Standard Organization (ISO)-specified
measurements, fitted with special castings on the corners for securing to
lifting equipment, vessels, chassis, rail cars, or stacking on other
containers. Containers come in many forms and types, including: ventilated,
insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid,
dry bulk, or other special configurations. Typical containers may be 10
feet, 20 feet, 30 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length, 8
feet or 8.5 feet in width, and 8.5 feet or 9.5 feet in height.
Container freight station
A dedicated port or container terminal area, usually
consisting of one or more sheds or warehouses and uncovered storage areas
where cargo is loaded (“stuffed”) into or unloaded
(“stripped”) from containers and may be temporarily stored in
the sheds or warehouses.
Container pool
An agreement between parties that allows the efficient
use and supply of containers; a common supply of containers available to
the shipper as required.
Container vessel
Ship equipped with cells into which containers can be
stacked; containerships may be full or partial, depending on whether all or
only some of its holds are fitted with container cells.
Container terminal
An area designated for the handling, storage, and
possibly loading or unloading of cargo into or out of containers, and where
containers can be picked up, dropped off, maintained, stored, or loaded or
unloaded from one mode of transport to another (that is, vessel, truck,
barge, or rail).
Container yard
A container handling and storage facility either
within a port or inland.
Contraband
Cargo that is prohibited.
Contract carrier
Any person not a common carrier who, under special and
individual contracts or agreements, transports passengers or cargo for
compensation.
Controlled atmosphere
Sophisticated, computer controlled systems that manage
the mixture of gases within a container throughout an intermodal journey,
thereby reducing decay.
Customhouse
A government office where duties are paid, documents
filed, and so forth, on foreign shipments.
Customs broker
A person or firm, licensed by the customs authority of
their country when required, engaged in entering and clearing goods through
customs for a client (importer).
Cut-off time (closing time)
The latest time a container may be delivered to a
terminal for loading to a scheduled barge, vessel, train, or truck.
Daily running cost
Cost per day of operating a ship.
Deconsolidation point
Place where cargo is ungrouped for delivery.
Demurrage
A penalty charge against shippers or consignees for
delaying the carrier’s equipment beyond the allowed free time. The
free time and demurrage charges are set forth in the charter party or
freight tariff.
Dock or quay
A structure attached to land to which a vessel is
moored.
Draft (or draught)
The depth of a ship while in the water. Measured as
the vertical distance between the waterline and the lowest edge of the
keel.
Dredging
Removal of sediment to deepen access channels, provide
turning basins for ships, and maintain adequate water depth along waterside
facilities.
Dry bulk
Loose, mostly uniform cargo, such as agribulk
products, coal, fertilizer, and ores, that are transported in bulk
carriers.
Dunnage
Material used in stowing cargo either for separation
or the prevention of damage.
Electronic data interchange (EDI)
Transmission of transactional data between computer
systems.
EDIFACT
Electronic Data Interchange for Administration,
Commerce, and Trade. International data interchange standards sponsored by
the United Nations.
Eminent domain
The sovereign power to take property for a necessary
public use, with reasonable compensation.
Feeder service
Transport service whereby loaded or empty containers
in a regional area are transferred to a “mother ship” for a
long-haul ocean voyage.
Fixed costs
Costs that do not vary with the level of activity.
Some fixed costs continue even if no cargo is carried; for example,
terminal leases, rent, and property taxes.
Force majeure
The title of a common clause in contracts, exempting
the parties from nonfulfillment of their obligations as a result of
conditions beyond their control, such as earthquakes, floods, or war.
Foreign trade zone
A free port in a country divorced from customs
authority, but under government control. Merchandise, except contraband,
may be stored in the zone without being subject to import duty regulations.
Forty-foot equivalent unit (FEU)
Unit of measurement equivalent to one forty-foot
container. Two twenty-foot containers (TEUs) equal one FEU.
Free trade zone
A zone, often within a port (but not always),
designated by the government of a country for duty-free entry of any
nonprohibited goods. Merchandise may be stored, displayed, or used for
manufacturing within the zone and reexported without duties being applied.
Also referred to as free port.
Freight, demurrage, and defense
Class of insurance provided by a protection and
indemnity (P&I) club that covers legal costs incurred by a shipowner in
connection with claims arising from the operation of the ship.
Freight forwarder
Person or company who arranges for the carriage of
goods and associated formalities on behalf of a shipper. The duties of a
forwarder include booking space on a ship, providing all the necessary
documentation, and arranging customs clearance.
Freight payable at destination
Method of paying the freight often used for shipment
of bulk cargo, the weight of which is established on discharge from the
ship.
Gantry crane
A crane fixed on a frame or structure spanning an
intervening space typically designed to traverse fixed structures such as
cargo (container) storage areas or quays and which is used to hoist
containers or other cargo in and out of vessels and place or lift from a
vessel, barge, trucks, chassis, or train.
Gateway
A point at which freight moving from one territory to
another is interchanged between transportation lines.
Good international practice
Term used in contracts, meaning the exercise of that
degree of skill, diligence, and prudence that would, in order to satisfy
internationally accepted standards of performance, reasonably be practiced
by an experienced person holding all applicable qualifications who is
engaged in the same type or similar types of activity under the same or
similar circumstances.
Grounding
Contact by a ship with the ground while the ship is
moored or anchored as a result of the water level dropping, or when
approaching the coast as a result of a navigational error.
Groupage
The grouping together of several compatible
consignments into a full container load. Also referred to as consolidation.
Harbor dues (or port dues)
Charges by a port authority to a vessel for each
harbor entry, usually on a per gross tonnage basis, to cover the costs of
basic port infrastructure and marine facilities such as buoys, beacons, and
vessel traffic management system.
Hand-over
Term used in contracts, meaning the process of
providing exclusive, unencumbered, peaceful, and vacant possession of and
access to a concession area and the existing operational port
infrastructure and also all rights, title (free of all encumbrances and
security), and interest in all the movable assets and all the facilities by
the government or the port authority on the hand-over date for the conduct
of terminal operations.
Harbormaster
An officer who is in charge of vessel movements,
safety, security, and environmental issues within a port.
Heavy lift charge
A charge typically imposed when special lifting gear
is required to handle a given piece of cargo, which may be of either heavy
weight or of large dimensions (often referred to as “out of
gauge” when dealing with container vessels).
Hold
A ship’s interior storage compartment.
In bond
Cargo moving under customs control where duty has not
yet been paid.
Inducement
Placing a port on a vessel’s itinerary because
the volume of cargo offered by that port justifies the cost of routing the
vessel.
Inland carrier
A transportation company that hauls export or import
traffic between ports and inland points.
Intermodal
Movement of cargo containers interchangeably between
transport modes where the equipment is compatible within the multiple
systems.
Jetty (or pier)
A structure that is perpendicular or at an angle to
the shoreline to which a vessel is secured for the purpose of loading and
unloading cargo.
Jumboising
Conversion of a ship to increase cargo-carrying
capacity by dividing and adding a new section.
Keel
A flat steel plate running along the center line of a
vessel.
Knot
Measure of ship speed, equal to one nautical mile
(1,852 meters) per hour.
LASH
Abbreviation for “lighter aboard ship.” A
specially constructed vessel equipped with an overhead traveling gantry
crane for lifting specially designed barges out of the water and stowing
them into the cellular holds of the vessel (loading) and unstowing
(unloading) as well.
Loaded draught (or draft)
Depth of water to which a ship is immersed when fully
loaded.
Landlord port
An institutional structure where the port authority or
other relevant public agency retains ownership of the port land and
responsibility for port planning and development, as well as the
maintenance of basic port infrastructure and aids to navigation.
Lender’s direct agreement
Agreement between parties to a concession or BOT
agreement (government or port authority and special purpose vehicle [SPV]
or terminal operator) and the lenders (usually banks or a consortium of
banks) setting out the rights and obligations of the lenders in relation to
the government or port authority regarding the facilitation of the
financing of a port project. The lender’s direct agreement is used in
the event of a proposed termination of the concession agreement to induce
the lenders to provide the debt to the SPV or operator under the financing
documents. These rights and obligations usually comprise assignment rights
with respect to the concession and the site lease agreement, priority
rights with respect to of repayment of the debt, and step-in rights in case
of termination as a result of breach of contract by the SPV or operator.
Lighter
An open or covered barge towed or pushed by a tugboat
or a pusher tug and used primarily in harbors and on inland waterways to
carry cargo to or from the port.
Limited recourse financing
Project financing in which sponsors or governments
agree to provide contingent financial support to give lenders extra
comfort; typically provided during the construction and start-up period of
a project, which is generally the riskiest time in the life of an
infrastructure project.
Line haul
The movement of freight over the tracks of a
transportation line from one location (port or city) to another.
Liner
A vessel sailing between specified ports on a regular
basis.
Lloyds’ Registry
An organization engaged in the surveying and classing
of ships so that insurance underwriters and others may know the quality and
condition of the vessels involved.
Longshoreman (or docker, port worker, or dock worker)
Individual employed locally in a port to load and
unload ships.
Lo-lo (lift-on lift-off)
Cargo handling method by which vessels are loaded or
unloaded by either ship or shore cranes.
Malacca-max
Maximum size of container and bulk vessels (in terms
of draught) that can cross the Malacca Straits. The Malacca-max reference
is believed to be today the absolute maximum possible size for future
container vessels (approximately 18,000 TEU).
Main port
A large multipurpose port serving a number of
countries and regions.
Management contract
An arrangement whereby the operation and management of
a facility is contracted by the public authority to a specialized operator
for a specified period and under specified conditions relating to
performance criteria, economic incentives, and maintenance and
infrastructure commitments. The public authority retains ownership of the
facility and the commercial risk associated with its operation.
Mezzanine financing
A mix of financing instruments, including equity,
subordinated debt, completion guarantees, and bridge financing, the balance
of which changes as the risk profile of a project changes (that is, as a
project moves beyond construction into operation).
Mixed cargo
Two or more products carried on board one ship.
Mobile crane
General purpose crane capable of moving on its own
wheels from one part of a port to another.
Moor
To attach a ship to the shore by ropes.
Neobulk cargo
Non-, or economically not feasible, containerizable
cargo such as timber, steel, and vehicles.
Nonrecourse financing
Project financing for which no loan guarantees or
financial support is provided by the sponsors or governments to lenders for
the project.
Nonvessel operating common carrier (NVOCC)
A cargo consolidator in ocean trades who buys space
from a carrier and resells it to smaller shippers. The NVOCC issues bills
of lading, publishes tariffs, and otherwise conducts itself as an ocean
common carrier, except that it does not provide the actual ocean or
intermodal service.
On-carrier
Person or company who contracts to transport cargo
from the port or place of discharge of a sea-going or ocean-going ship to
another destination by a different means of transport, such as a feeder
vessel, truck, train, or barge.
Optional cargo
Cargo that is destined for one of the ship’s
discharge ports, the exact one not being known when the goods are loaded.
Overcarriage
The carriage of cargo beyond the port for which it was
intended.
Pallet
A flat tray, generally made of wood, but occasionally
steel or other materials, on which goods can be stacked. There are two
principal sizes: the ISO pallet, which measures 1 x 1.2 meters, and the
europallet at 0.8 x 1.2 meters.
Panamax
Maximum beam that allows vessels to pass through the
locks of the Panama Canal (specifically used for dry bulk and container
vessels).
Permanent dunnage
Strips of timber fixed to the frames of a ship to keep
cargo away from the sides of the ship to avoid damage and condensation.
Pilferage
Stealing of cargo.
Pilotage
The act of assisting the master of a ship in
navigation when entering or leaving a port or in confined water.
Pilotage dues
Fee payable by the owner or operator of a ship for the
services of a pilot; the fee is normally based on the ship’s tonnage,
draft, or length.
Platform (or flat)
A shipping container without sides, ends, or a roof.
Normally 20 or 40 feet long, it is used for awkwardly shaped cargo that
cannot fit on or in any other type of container.
Plimsoll mark/load lines
A series of horizontal lines and a circle with a
horizontal line painted amidships of both sides of the hull of a ship
marking the level that must remain above the surface of the water for the
vessel’s stability.
Pontoon
Flat-bottomed floating structure with a shallow
draught.
Pooling
Sharing of cargo or the profit or loss fromfreight by
member lines of a liner conference.
Port dues (or harbor dues)
Charges levied against a shipowner or ship operator by
a port authority for the use of a port (see also harbor dues).
Port of refuge
Port, not on a ship’s itinerary, which the ship
calls at due to some unforeseen hazard at sea and where the ship may
undergo repairs, refuel, or rescue cargo.
Port of registry
Place where a ship is registered with the
authorities, thereby establishing its nationality.
Preentry
Presentation to the customs authorities of export or
import declarations prior to the clearance of goods.
Project financing
Financing wherein the lender looks to a
project’s cash flows to repay the principal and interest on
debt, and to a project’s assets for security; also known as
“structured financing” because it requires structuring the debt
andequity such that a project’s cash flows areadequate to service
the debt.
Rail-mounted gantry (RMG) or rail-mounted container
gantry crane
Rail-mounted gantry crane used for container
acceptance, delivery, and stacking operations in a container yard.
Reefer
Refrigerated container or vessel designed to transport
refrigerated or frozen cargo.
Relay
To transfer containers from one ship to another.
Ro/ro
A shortening of the term “roll-on
roll-off.” Ro/ro is a cargo handling method whereby vessels are
loaded via one or more ramps that are lowered on the quay.
Rubber-tired gantry (RTG) or rubber-tired container
gantry crane
Gantry crane on rubber tires typically used for
acceptance, delivery, and container stacking at a container yard.
Shed (also see warehouse)
Covered area for the reception, delivery,
consolidation, distribution, and storage of cargo. Note: A warehouse usually points at
longer term storage, whereas a shed usually is used for shorter term
storage.
Ship chandler
An individual or company selling equipment and
supplies for ships.
Ship’s tackle
All rigging and so forth used on a ship to load or
unload cargo.
Side loader
A lift truck fitted with lifting attachments operating
to one side for handling containers.
Spotting
Placing a container where required to be loaded or
unloaded.
Spreader
A piece of equipment designed to lift containers by
their corner castings.
Stackcar
An articulated multiple platform rail car that allows
containers to be double stacked.
Stacktrain
A rail service whereby rail cars carry containers
stacked two high on specially operated unit trains.
Stevedore
Individual or firm that employs longshoremen (or
dockers, dock workers, or port workers) to load and unload vessels.
Stevedoring charges
Fees for loading and stowing or unloading a ship.
Sto-ro
A vessel with capacity for breakbulk cargo as well as
vehicles or trailer borne cargo.
Stowage factor
The average cubic space occupied by one ton weight of
cargo as stowed aboard a ship.
Straddle carrier
Type of equipment that picks up and transports
containers between its legs for movement within a container terminal.
Stripping (unstuffing)
Unloading of a container.
Supply chain
A logistics management system that integrates the
sequence of activities from delivery of raw materials to the manufacturer
through to the delivery of the finished product to the customer in
measurable components.
Tare weight
The weight of wrapping or packing; added to the net
weight of cargo to determine its gross weight.
Terminal charge
A charge made for a service performed in a terminal
area typically referring to handling associated with receipt, delivery, or
inspection of cargo via land-based operations.
Throughput charge
The charge for moving a container through a container
yard off of or onto a ship.
Top off
To fill a ship that is already partly loaded with
cargo. Typically occurs where there is a draught restriction at the first
load port—the ship loads a quantity of cargo corresponding to the
permissive draught, then fills up at the second port where there is no
restriction.
Top stow cargo
Goods that are stowed on top of all others in a
ship’s hold because of their relatively low density and the
probability that they would be damaged if overstowed.
Toplifter
Forklift truck capable of lifting a container by means
of its spreader.
Towage
Charges for the services of tugs assisting a ship or
other vessels in ports.
Tramp line
An ocean carrier company operating vessels on other
than regular routes and schedules.
Transshipment
A distribution method whereby containers or cargo are
transferred from one vessel to another to reach their final destination,
compared to a direct service from the load port of origin to the discharge
port of destination. This method is often used to gain better vessel
utilization and thereby economies of scale by consolidating cargo onto
larger vessels while transiting in the direction of main trade routes.
Transshipment port
A port where cargo is transferred from one carrier to
another or from one vessel of a carrier to another vessel of the same
carrier without the cargo leaving the port.
Turnaround time
The time it takes between the arrival of a vessel and
its departure from port; frequently used as a measure of port efficiency.
Twenty-foot equivalent unit (TEU)
Container size standard of twenty feet. Two
twenty-foot containers (TEUs) equal one FEU. Container vessel capacity and
port throughput capacity are frequently referred to in TEUs.
Unitization
The consolidation of a quantity of individual items
into one large shipping unit for easier and faster handling through methods
such as palletizing, stripping, slinging and containerization.
Unloader
Port equipment employed to unload ships carrying dry
bulk cargo. (Note:
Small movable and hoistable unloaders are sometimes referred to as
“vacuvators.”)
Unmoor
To remove the ropes that attach a ship to the shore.
Unstuffing (or stripping)
Unloading of a container.
Variable cost
Costs that vary directly with the level of activity
within a short time. Examples include costs of moving cargo inland on
trains or trucks, stevedoring in some ports, and short-term equipment
leases.
Vessel manifest
Declarations made by international ocean carriers
relating to the ship’s crew and contents at both the port of
departure and arrival. All bills of lading are registered on the manifest.
Vessel traffic management system
Vessel control and management system (VTMS) usually
under the authority of the harbormaster, comprising equipment (such as
radars, tracking software, and radio communications), personnel (traffic
operators), and regulations. Most larger maritime ports have relatively
advanced vessel traffic management systems for maritime safety, protection
of the environment, and coordination of marine services.
Warehouse (see also shed)
Covered area for the reception, delivery,
consolidation, distribution, and storage of cargo. Note: A warehouse usually points
at longer term storage, whereas a shed usually is used for shorter term
storage.
Waybill
Document, issued by a shipping line to a shipper,
which serves as a receipt for the goods and evidence of the contract of
carriage.
Wharf
Structure built alongside the water or perpendicular
to the shore where ships berth for loading or discharging goods.
Wharfage
The charge that an owner of a facility (terminal or
port) charges for the movement of cargo through that facility.
Sources drawn on in developing definitions for this glossary include:
Brodie, Peter. 1997.
"Dictionary of Shipping Terms,
Third Edition"