BAREBOAT CHARTERER: Charterer gets the ship, its hull, and machinery, and must hire a crew or the

services of a ship management company. By contrast, a time charterer pays for a ready-to-go vessel.
CHARTER PARTY: Actual document substantiating a vessel charter. There are several standard
agreements, such as box time, or New York Produce Exchange (NYPE). Box time is favored more than
NYPE, which dates to the 1920s and contains archaic language. Larger liner companies have their own
charter parties. Most charter parties are written, though a few are oral, generally among parties whose
business is well known to each other. By law, a charter party is no less valid if it has been orally rendered.
VOYAGE CHARTER: A charterer pays for use of a vessel to carry cargo from one designated port to
another, or one port range to another. Charterer is usually responsible for stowage, discharge of cargo,
and pays freight passed on vessel capacity or cargo loaded. The greatest risk is that a voyage may last
longer than anticipated.
TIME CHARTER A charterer pay for the use of a vessel for a specified period. The charterer also provides
and pays for fuel, port charges, and pilotage. The shipowner retains responsibility for navigation and most
operations aboard the vessel.
PART CHARTER:Usually based on voyage charter party model, and occur when a shipowner cannot
locate a charterer with a full load. Part charters can work well if the cargo is too large or bulky to be carried
on a liner vessel, but too small to justify a full vessel charter.
RECAP The document transmitted when a fixture has been agreed, setting forth all of the negotiated
terms and details. This is the operative document until the charter party is drawn up.
HIRE Charterer compensates the owner for use of a vessel. "On hire" means the ship is in service as
contracted. "Off hire" means that the ship is temporarily unavailable to the charterer.
FIXTURE Conclusion of charter negotiations between owner and charterer, when an agreement has been
reached to charter a vessel.
DISPONENT OWNER: Name used to describe a charterer who acts as an owner by sub-chartering a
vessel, and assuming an owners liability to the sub-charterer.
FREIGHT: Compensation paid to the owner by the voyage charterer for use of a vessel. "This is
sometimes confusing because the same term is used to describe the payment made by a cargo shipper to
the bill of lading issuer," said Keith Heard, an admiralty attorney with the firm of Burke & Parsons in New
York.
FIOS (FREE IN, OUT, STOWED) :
It is most important to remember that the "Free" reference is viewed from the Ship Owners point of view not the Shippers. Some Shippers get caught out when they read the word "Free" as they incorrectly
believe that it refers to them.
Freight rates quoted on a FIOS basis specifically exclude all aspects relating to cargo handling operations.
The ship is only responsible for expenses arising as a result of the ship calling into the port, i.e. tugs, pilots
and light dues etc. Another very important consideration when booking cargo on FIOS terms is that the
ship does not bear any responsibility for the speed of loading or discharging. Usually the rate agreed
includes a fixed "free" period of time for loading/discharging operations, after which time a daily demurrage
is incurred. Obviously this is of paramount importance where port congestion or stevedoring performance
is uncertain. There are many overseas ports which fall into this category and particularly where vessel
demurrage rates can vary significantly, depending on the size and type of ship nominated to undertake the
particular project.
LINER TERMS - GENERAL STATEMENT :
Liner Terms is a very ambiguous statement and can be interpreted in a variety of ways in different ports of
the world and by different Ship Owners/Agents. Personally we would prefer to clearly define the extent of
responsibility when quoting on this basis.
LINER TERMS HOOK / HOOK :
Given that this is a notional point in chartering terms, this is best described as the Shipper/Receiver
arranging for delivery/receival of cargo to/from directly under ships hook and the ship paying for the labour
to stow the cargo in the vessels cargo holds, as well as on-board lashing & securing and provision of

dunnage materials, and to discharge again over the ships side. Shore based stevedoring aspects remain
the responsibility of the shipper/receiver, however, there are some Owners that may incorporate these
costs into their LTHH rate. Once again, ask Owners to clearly define this aspect.
Wharfage charges/dues/taxes can be a contentious issue but are usually considered to be for the
Shippers/Receivers account and there may also be many other statutory levies on cargo or freight that
may apply. Many Shippers/Receivers are unaware of these additional costs and do not include them into
their costing and consequently may be left with an unexpected considerable expense at the completion of
a project.
FULL LINER TERMS :
This is somewhat a vaguer term given different port practices. However, it generally implies that the freight
amount provided includes both shore based and on-board stevedoring, lashing/unlashing, dunnage
materials, securing/unsecuring and all costs of presenting to/receiving the cargo from the ships side; with
the shippers/receivers just bearing the cost of discharging from/reloading to the transport, along with the
usual port charges/levies/taxes etc.
Frequently the terms are varied at different ends of the voyage i.e. FILO (Free In/Liner Out), LIFO (Liner In
Free Out) or FIFO (Free In/Free Out) etc. To be absolutely sure of all liabilities, it is always advisable to
request that terms clearly and concisely indicate what is/isnt included in your particular contract - in
laymans terms.

FHEX: Fridays/Holidays Excluded. Viernes/feriados excluidos. Usado en pases donde el viernes

es feriado.
FHINC: Fridays/Holidays Included. Vienes/feriados incluidos.
FI (Free in): Libre de gastos de embarque/estiba
FILO: Free In/Liner Out. Seafreight with which the shipper pays load costs and the = carrier pays
for discharge costs. Flete maritime donde el cargador paga la estiba y el navo la desestiba.
FIO: Free In/Out. Freight booked FIO includes the sea freight, but no loading/discharging costs,
i.e. the charterer pays for cost of loading and discharging cargo. Este tipo de flete no incluye ni carga
ni descarga.
FIOS: Free In/Out Stowed. As per FIO, but includes stowage costs. Idem anterior pero incluye el
estibaje a bordo.
FIOT: Free In/Out and Trimmed. As per FIOS but includes trimming the leveling of bulk cargoes.
Como el FIOS, pero en este caso incluye el trimado de la carga.
FIOSLSD: Free In/Out Stowed, Lashed, Secured and Dunnaged. As per FIO, but includes cost of
lashing securing and dunnaging cargo to Masters satisfaction. Como el FIO, pero incluye la atadura
segura de la carga y los materiales de estiba.
FIOST: Free In/Out and Trimmed. Charterer pays for cost of loading/discharging cargo, including
stowage and trimming. Como el FIOS, pero incluye adems el trimado de la carga.

EXW (Ex Works)

Seller fulfills the obligation to deliver when he or she has made the goods available at his/her premises
(i.e., works, factory, warehouse, etc.) to the buyer. In particular, the seller is not responsible for loading the
goods in the vehicle provided by the buyer or for clearing the goods for export, unless otherwise agreed.
The buyer bears all costs and risks involved in taking the goods from the seller's premises to the desired
destination. This term thus represents the minimum obligation for the seller.
FCA (Free Carrier)
Seller fulfills their obligation when he or she has handed over the goods, cleared for export, into the charge
of the carrier named by the buyer at the named place or point. If no precise point is indicated by the buyer,
the seller may choose, within the place or range stipulated, where the carrier should take the goods into
their charge.
FAS (Free Alongside Ship)
Seller fulfills his obligation to deliver when the goods have been placed alongside the vessel on the quay
or in lighters at the named port of shipment. This means that the buyer has to bear all costs and risks of
loss of or damage to the goods from that moment.
FOB (Free On Board)
Seller fulfills his or her obligation to deliver when the goods have passed over the ship's rail at the named

port of shipment. This means that the buyer has to bear all costs and risks to loss of or damage to the
goods from that point. The FOB term requires the seller to clear the goods for export.
CFR (Cost and Freight)
Seller pays the costs and freight necessary to bring the goods to the named port of destination, Terms of
Sale but the risk of loss of or damage to the goods, as (continued) well as any additional costs due to
events occurring after the time the goods have been delivered on board the vessel, is transferred from the
seller to the buyer when the goods pass the ship's rail in the port of shipment. The CFR term requires the
seller to clear the goods for export.
CIF (Cost, Insurance and Freight)
Seller has the same obligations as under the CFR but also has to procure marine insurance against the
buyer's risk of loss or damage to the goods during the carriage. The seller contracts for insurance and
pays the insurance premium. The CIF term requires the seller to clear the goods for export.
CPT (Carriage Paid To)
Seller pays the freight for the carriage of the goods to the named destination. The risk of loss of or damage
to the goods, as well as any additional costs due to events occurring after the time the goods have been
delivered to the carrier, is transferred from the seller to the buyer when the goods have been delivered into
the custody of the carrier. If subsequent carriers are used for the carriage to the agreed upon destination,
the risk passes when the goods have been delivered to the first carrier. The CPT term requires the seller to
clear the goods for export.
CIP (Carriage and Insurance Paid To)
Seller has the same obligations as under CPT, but with the addition that the seller has to procure cargo
insurance against the buyer's risk of loss of or damage to the goods during the carriage. The seller
contracts for insurance and pays the insurance premium. The buyer should note that under the CIP term
the seller is required to obtain insurance only on minimum coverage. The CIP term requires the seller to
clear the goods for export.
DAF (Delivered At Frontier)
Seller fulfill their obligation to deliver when the goods have been made available, cleared for export, at the
named point and placed at the frontier, but before the customs Terms of Sale border of the adjoining
country.
DDU (Delivered Duty Unpaid)
Seller fulfills his obligation to deliver when the goods have been made available at the named place in the
country of importation. The seller has to bear the costs and risks involved in bringing the goods thereto
(excluding duties, taxes and other official charges payable upon importation) as well as the costs and risks
of carrying out customs formalities. The buyer has to pay any additional costs and to bear any risks
caused by failure to clear the goods for in time.
DDP (Delivered Duty paid)
Seller fulfills his obligation to deliver when the goods have been made available at the named place in the
country of importation. The seller has to bear the risks and costs, including duties, taxes and other charges
of delivering the goods thereto, clear for importation. While the EXW term represents the minimum
obligation for the seller, DDP represents the maximum.
DES (Delivered Ex Ship)
Seller fulfills his/her obligation to deliver when the goods have been made available to the buyer on board
the ship, uncleared for import at the named port of destination. The seller has to bear all the costs and
risks involved in bringing the goods to the named port destination.
DEQ (Delivered Ex Quay, [Duty Paid])
When the goods have been available to the buyer on the quay (wharf) at the named port of destination,
cleared for importation. The seller has to bear all risks and costs including duties, taxes and other charges
of delivering the goods thereto.
Cash in Advance
Upfront cash to exporters before shipment.

Letter of Credit (L/C)

A letter issued by a bank authorizing the bearer to draw a stated amount of money from the issuing bank,
its branches, or other associated banks or agencies.
Open Account
An unpaid credit order.
Consignment
Payments deferred until goods sold.
Telegraphic Transfer (T/T)
Electronic transfers of funds through banks.