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Shipping Business > Glossary > Flashcards

Glossary Flashcards

1
Q

Knot

A

1 nautical mph

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2
Q

Nautical mile

A

Travelling 1’ of latitude (e.g. if you travel 60nm north or south, your latitude will change by 1 full degree)

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3
Q

Mercator projection

A

The most common map projection, created by wrapping a cylindar of paper around a globe; this shows compass directions correctly but distorts sizing

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4
Q

Admiralty charts

A

Offical charts created by hydrographic bodies; their use is required under SOLAS

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5
Q

Neap tides

A

Least extreme tidal ranges (when the sun’s and moon’s gravitational pull is at a right angle to one another)

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6
Q

Spring tides

A

Most extreme tidal ranges (when the sun and moon’s gravity pulls together) - happens ~2x a month

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7
Q

Tide tables

A

Published times/depths of tides, used to calculate when vessels can enter ports without running aground

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8
Q

Enclosed docks

A

Basins cut into the land sealed by docks; used to control water depths avoiding tidal constraints

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9
Q

Locks

A

Short sections of waterway wirh watertight gates at each end (sluice gates); used to control the depth of water, e.g. when entering enclosed docks or lifting ships over higher ground in calal systems

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10
Q

Flights

A

A series of locks

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11
Q

Tropical storms

A

High winds/rough sea conditions frequent in tropical climates at certain times of year; hurricanes (USG/Caribs, June-Nov), typhoons (FE, May-Dec), cyclones (Indian Ocean, mid/end year)

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12
Q

Hurricane

A

Tropical storms in the USG/Caribs, seasonally June-Nov with Aug-Oct most extreme

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13
Q

Typhoons

A

Tropical storms in the FE, seasonally May-Dec with Jul-Sep most extreme

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14
Q

Cyclones

A

Tropical storms in the Indian Ocean, seasonally middle/end of year depending on location

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15
Q

Willy-willies/Williwaws

A

Tropical storms/cyclones reaching NW Aus

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16
Q

Beaufort wind scale

A

Describes the state of the sea at varying wind strengths

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17
Q

Ice breakers

A

Vessels designed to break through ice in ports, most common in northern hemisphere timber ports (Scandinavia, Russia) - may be nuclear powered

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18
Q

Comparitive advantage

A

One country can export a commodity comparitively cheaper than another; key factors are land (usually static; natural factors, such as climate, geography, physical avalibility in the case of natural resources), labour (avalibility, efficency and cost), capital (things driven by money, e.g. infrastructure developments, equipment - linked to labour as higher skilled labour can lead to greater technilogical advancements re: machinery etc) and entiprise (willingness to take risk, can also be driven by policy e.g. subsidies)

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19
Q

Absolute advantage

A

One country possesses a commodity in an exportable quantity whereas another has none

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20
Q

Liners

A

A shipping sector that trades basis a set schedule of ports/dates/times (usually a specific day of the week per port) and at a published rate of freight/rules of carriage

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21
Q

Tramps

A

Dry bulk cargo ships that trade wherever they can find cargoes (the oppisite of liners)

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22
Q

Charterer

A

Entity employing a ship; could be the actual importer or exporter, or may be a trader acting between them

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23
Q

Principles

A

The shipowner and charterer involved in a specific fixture

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24
Q

Charterer’s broker

A

Arranges fixtures, not to be confused with charterer’s agent

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25
Q

Freight forwarder

A

(AKA forwarding agent) An independent company that makes arrangements on behalf of a shipper for the movement of their goods from the shipper’s premesis to the point where the ship owner takes responsibility - see also NVOC (non vessel operating carrier) which is similar but offers door-to-door service

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26
Q

Bareboat charter

A

Lease of a vessel without any of crewing/bunkering etc provided - useful to avoid the large upfront capital outlay of buying ships

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27
Q

Dispondent owner

A

Deemed to be the owner but not actually the owner’ - take on all legal responsibilities of an owner without actual ownership, as in bareboat charters

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28
Q

Sale and purchase broking

A

One of the six diciplines - acting as an agent on behalf of buyers or sellers of marine property (AKA S&P broker). Typically extremely specialised, requires a high level of euntreprenureal skill and stress tolerance. Commision varies from 2.5-1%. Sale brokers must present the vessel to the most number of buyers to achieve the best price, purcahse brokers must intimately understand the technical requirements before sourcing the most cost efficient ship. Note the role of recycling/scrap yards

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29
Q

Ship management

A

One of the six diciplines, refering to general running of the ship, covering crewing, storing, technical, insurance, operations and commercial aspects

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30
Q

Independent liner agents

A

One of the six diciplines, refering to general running of a liner; includes marketing their services, documenting cargoes, making load/disch arrangements (this may also be done by a liner operating company rather than an independent agent)

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31
Q

Dry cargo chartering

A

One of the six diciplines; finding a dry bulk ship for a cargo or visa versa

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32
Q

Tanker chartering

A

One of the six diciplines; finding a tanker for bulk liquids or visa versa

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33
Q

Port agent

A

An entity carrying out work on behalf of a principle at a port, required to exercise due dilligence is preforming their duties, apply any special skill they profess to have, to render account and to not make a secret profit (e.g. convincing a stevedore to inflate tehir bill to increase the agent’s % commision). In return the principle agrees to pay the agrent and protect them against liabilities incurred in carryong out the principle’s orders, including legal action and repaying expenses (cont. 3.35). These are paid via a tarrif, scaled depending on size of ship

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34
Q

Profession

A

A form of employment you must pass qualifying exams for and become a member of a professional body, e.g. chartered accounting

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35
Q

Trade

A

A form of employment that doesn’t require qualifying exams e.g. banking

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36
Q

Crewing

A

Providing crew for a ship; often subcontracted to offshore companies (particularly in the Philippines), especially in martitime countries which allow owners to flag their ship out to open registaries to take advantage of more relaxed regulations of the nationality of the ship’s personel (e.g. UK owners using Isle of Man, Gibraltar or Bemuda). Crewing departments are resonsible for checking certifications/references, arranging leave, carrying out crew changes without causing delays (and the associated travel arrangements for crew), correct wages and allotments

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37
Q

Allotments

A

A proportion of a seafarer’s wage which is sent directly to relitives back home

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38
Q

Storing

A

Split into two; provisions for crew and technical supplies (deck stores and engine room stores)

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39
Q

Provisions

A

Includes food/drink, cooking and cleaning supplies etc; usually provided by the ship’s command via an allocated budget to allow for cultural/religious needs to be met

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40
Q

Deck stores

A

Materials needed for cargo operations, e.g. ropes for lashing, timber for dunnage (responsibility of the technical department)

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41
Q

Engine room stores

A

Materials needed for engine maintenance, e.g. lubes, spare parts (responsibility of the technical department)

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42
Q

Dunnage

A

Material used to keep cargo in position within a ship’s hold, e.g. wood, rubber matting

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43
Q

Technical department

A

Manages the technical running of a ship

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44
Q

Marine superintendent

A

Manages the maintenance of the fabric of the ship itself, including ensuring classification surveys are up to date. Responds in person internationally in case of a physical accident involving one of their ships

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45
Q

Master mariner

A

Captain of a merchant ship

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46
Q

Engineering superintendant

A

Manages the ship’s machinery, including cargo handling equipment and electronic navigational devices. Responds in person internationally in case of a physical accident involving one of their ships

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47
Q

Chief engineer

A

Most senior engineer on board a ship

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48
Q

Marine insurance

A

Usually the second highest cost of running a vessel after crewing; split into two categories, H&M insurance and third party insurance

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49
Q

Hull and machinery insurance

A

High cost on account of the high value of vessels themselves, making small savings key; main provider is Lloyd’s of London, which is underwritten by individual underwriters grouped into sydicates which can only be accessed by Lloyd’s of London brokers. Can also be sourced directly from insurance companies

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50
Q

Lloyd’s of London

A

Insurance provider

51
Q

Third party insurance

A

Insurance for claims against the ship by a third party, e.g. a port authority’s claim against a ship for damage to a jetty, personal injury claim from a crew member, claims from cargo owners if goods do not arrive in ‘apparent good order and condition.’ Lloyd’s of London do not offer this coverage and so shipowners formed their own protection and indemnity associations. 3rd party claims against ships are very common

52
Q

Protection and indemnity associations

A

Clubs created by shipowners to provide third party insurance; ‘protection’ refers to legal aid provided to fight claims and ‘indemnity’ repays owners for settled claims

53
Q

Operations

A

The department that runs the ship; communicating with the commercial side, planning voyages and bunkering, appointing port agents - all the functions required to make a vessel an operating trading entitiy on the high seas. Close communication with all other departments is essential, e.g. scheduling conflicts must be avoided if the technical department has arranged a spell in dry dock or if the crewing department requires a crew change

54
Q

ISM Code

A

A section incorporated into SOLAS by the IMO requiring ship operators to comply with a code of practice, aiming to reduce vessel incidents caused by poor management. Operators must have their onland and at-sea procedures audited and approved by inspectors acting on behalf of the flag state. If approved, the company is issued a DOC (document of compliance) for the shore office and SMC (safety management certificate) for the vessel. Approval requires full compliance with SOLAS, Marpol and local laws regarding the conditions and training on board. Made mandatory for all vessel types in July 2002

55
Q

ISPS Code

A

A section of SOLAS devised in response to security concerns in the wake of 9/11, covering anti-terrorism, stowaways and piracy, which came into effect in July 2004. It covers ships of over 500gt and ports. Governments are required to appoint RSOs to audit the security arrangements of ports and onshore shipping offices. Ships/ports undergo a risk assesment after which a security plan is drawn up, which is reviewed by the RSO. If the plan passes the RSO audit the port/vsl is issued a certificate. Ports may deny entry to vessels not carrying a certificate or vessels coming from ports without certificates

56
Q

Liner agent

A

An agent working in liner trades, who’s responsibilities as defined by FONASBA are: marketing and sales; documentation; attending the ship; control of equipment; and accounting and finance (note this can be carried out in house or by an independent). Variations include agents who are only responsible for inward cargo and hinterland agents. Usually paid via commision on grass freight earnt

57
Q

Hinterland agents

A

Liner agents who are based in landlocked countries and are therefore only involved in sales and marketing

58
Q

Exclusive broker

A

(Usually in dry bulk chartering) - A broker who only works for one principle/that principle channels all of their business through one broker. May be international or by region. The most exclusive exclusive brokers are charterers working within the principle’s own organisation (e.g. BP/BP shipping). 1.25% is standard dry bulk commision

59
Q

Competitive brokers

A

(Usually re: dry bulk) Brokers who compete with one another to bring suitable business to a principle. 1.25% is standard dry bulk commision

60
Q

Intermediate broker

A

Brokers who form part of a chain linking other brokers together; this is less common now due to modernised communication methods. Intermediate brokers are also so-called when there is only one broker between two principles (common with tankers)

61
Q

Stevedore

A

Entity responsible for docking and then loading/discharging a ship

62
Q

Port agent duties

A

Representing the ship’s owner at a port, covering all husbandry before, during and after a port call. Before - confering with the port authority: including paying any port dues, arranging a berth, arranging load/disch requirements. During - meeting the vessel upon arrival, inluding arranging customs/immigration requirements, providing the captain with the budget with which they will buy provisions and handing out the ship’s mail; clearing stores/provisions back through customs once purchased; arranging service engineers as needed; other misc. tasks such as arranging for the ship’s laundry and medical/dental attention for the crew. Providing progress updates to the owner whilst at berth, arranging for turnaround in the quickest possible time. After - providing a statement of fact to principles (a minute by minute account of the vessel’s time at port); compiling accounts for disbursment (usually agents get a lump sum up front from the owner, and then will either request more money to pay outstanding fees or return the remainder)

63
Q

Charterer’s agent

A

Not to be confused with charterer’s broker. Charterers often stipulate that the owner must appoint an agent nominated by the charterer (like nominating inspectors), and they are then referred to as the charterer’s agent, however legally this is a misnomer as the agent always represents the owner/disponent owner. Charterers have the right of nomination because they need to maximise efficient use of their jetties and therefore prefer to rely on one source of trusted information from a known expert; their movements may be security sensitive (e.g. middle eastern ports) meaning access is limited, or they may be commercially sensitive. In return for consistent nomination from a charterer, port agents supply charterers with the same information the owners’ recieve; however agents are legally obliged to always represent the interests of the owner and not the charterer meaning relationships and professionalism can be tested. The exception to this is time charters, whereby the charterer is disponent owner

64
Q

Supervisory/protecting agent

A

Another port agent appointed by the shipowner if the shipowner is not comfortable with the agent nominated by the charterer, who oversees the work of the agent appointed by the charterer

65
Q

Liberty class

A

A class of vessel that was mass produced during WWII, eventually leading to an oversupply of vessels following the war

66
Q

The supply of shipping

A

The number of ships, the size of those ships, their speed, and how long they spend in port

67
Q

Intermodalism

A

Describes the way a container can travel on various modes of transport

68
Q

Transhipment

A

A process whereby ports with the greatest capacity become container transport hubs, and containers are ‘transhipped’ to/from smaller ports by smaller feeder ships

69
Q

Lay-up

A

Putting ships into storage (usually during times of low freight rates)

70
Q

Slow steaming

A

Operating ships at reduced speeds, usually during times of low freight rates (this reduces fuel costs and reduces overal freight supply)

71
Q

Germanischer Lloyd

A

The German Classification society

72
Q

Tonne-miles

A

A unitof freight transportation equivalent to a ton of freight moved onemile - used to measure freight demand

73
Q

Ports

A

Any sheltered place a ship can load/discharge; competition between container ports is fierce, and shipowners will consider each port’s location, geographical features/limitations, equipmant/infrastructure, and dues

74
Q

Owning ships under a national flag

A

Encouraged by governments to conserve foreign exchange, earn FX, control trade, prestige and strategic needs (e.g. war)

75
Q

Protectionism

A

Governmental sheilding its national shipping industry; through taxing foreign ships, subsidising national ship ownership, limiting the nationality of crew members, subsidising shipyards/building, income tax consessions to ship owners etc

76
Q

Ship registration

A

Ship registration is the process by which a ship is documented and given the nationality of the country to which the ship has been documented, known as its flag state. A ship is subject to the law of its flag state. A ship’s flag state exercises regulatory control over the vessel and is required to inspect it regularly, certify the ship’s equipment and crew, and issue safety and pollution prevention documents. The organization which actually registers the ship is known as its registry. Registries may be governmental or private agencies. A register that is open only to ships of its own nation is known as a traditional or national register. Registers that are open to foreign-owned ships are known as open registries and are sometimes called flags of convenience.

77
Q

Open registeries

A

Open to foreign owned ships; e.g. Panama/Liberia, which were the first to create schemes whereby owners could create shell companies through them, allowing them access to the rigister. These are sometimes known as flags of convenience. Other examples include the Marshall Islands, Bahamas, Malta, Cyprus, Bermuda, Cayman islands.

78
Q

Traditional/National registeries

A

Only open to ships owned by onshore entities (e.g. the shipowner’s offices are based in the same country)

79
Q

Port state control

A

An inspection regime for countries to inspect foreign-registered ships in port and take action against ships that are not in compliance. Inspectors for PSC are called PSC officers (PSCOs), and check compliance with international conventions, such as SOLAS/MARPOL/STCW/etc. Inspections involve checking that the vessel is manned and operated in compliance with international law, verifying the competency of the ship’s master and officers, and the ship’s condition and equipment. The findings of PSCOs are stored on a publically avalible central database aimed at pressurising poor owners, however sanctions up to complete bans on vessels docking at ports within an MoU can be levied

80
Q

STCW

A

The International Convention on Standards of Training, Certification and Watchkeeping for Seafarers sets minimum qualification standards for seafarers; STCW was adopted in 1978 by the IMO, and entered into force in 1984. The Convention was significantly amended in 1995 and 2010, which was entered into force on 1 January 2012

81
Q

Paris Memorium of Understanding

A

In 1982 several European countries came together to take joint action on PSC issues; formerly, nations only had the power to intervene in their own waters, however this was not always effective as certain situations such as a pollution incident could impact a nation despite originating in another’s waters. The Paris MoU meant that the signatories could work together to more effectively police European waters overall. Canada joined later to expand its reach across the north Atlantic. 10 years later a Latin MoU was created, followed by Pacific, Tokyo and Carribean groups; recent groups cover the Indian Ocean, the Med, WAF, Black Sea and AG

82
Q

Maritime Labour Convention

A

Created by the ILO in 2013 to set minimum standards for crew welfare, including minimum age, condition of employment, access to medical care, safety training, food and recreational facilities

83
Q

Ship classification

A

The way a ship obtains a certificate of quality - not to be confused with ship registration (it’s nationality); the ship must meet its registary’s classification standards (however not all registaries require it). Classification is provided by classification societies. To maintain classification, a vessel must be inspected afloat and in drydock every 5 years (more frequent/rigourus as the vessel ages). Some vessels are permitted to go 7.5 years between drydock inspection if built/maintained to specific standards, however this revers back to every 5 years once its 15 years old

84
Q

Classification societies

A

Commercial organisations or government bodies which provide classification to a vessel. In the case of Russia and South Korea, these agencies are the same ones that inspect vessels flagged under them (e.g. in order to be a Russian flagged vessel, you must recieve classification certificates from the Russian Maritime Register of Shipping, which is the registary for Russia)

85
Q

Sea Web

A

The Lloyd’s Register of Ship’s online database; this includes every vessel globally over 100dwt and is used by the IMO to issue IMO numbers

86
Q

100AI

A

A ship surveyed by Lloyd’s classification agency and complies with their standards. If a Maltese cross is added to the end, this means the vessel was also built under supervision from Lloyd’s surveyors

87
Q

Classification vs Registration

A

A ship must be registered but in theory does not need to be classed (although unclassified ships are rare due to the obvious safety concerns leading to insurance/employment issues). Classification = an independent check on the condition of a vessel by classification societies. Registration = the nationality of a ship; the vessel must comply with it’s nation’s laws and appropriate international conventions

88
Q

Tons

A

A variety of meanings depending on context, but typically refers to a ‘tun,’ which meant a 252 gallon barrel typically used to transport wine; this became a measurement for the volume a ship could carry (e.g. a ship may have been able to carry 200 ‘tuns’). Now usually used to refer to 95-105 cubic feet in GT/NT

89
Q

GRT

A

Introduced after engines were added to ships to describe it’s gross registered tonnage; this is the measure of enclosed space on a ship including any space used by machinery (1 ton = 100 cubic feet, loosely based on tuns)

90
Q

NRT

A

Introduced after engines were added to ships to describe it’s gross registered tonnage; this is the measure of enclosed space on a ship excluding any space used by machinery (ton = 100 cubic feet)

91
Q

GT

A

A new system of meaurement introduced in 1994 replacing GRT, whereby 1 ton = 95-105 cubic feet depending on vessel type

92
Q

NT

A

A new system of meaurement introduced in 1994 replacing NRT, whereby 1 ton = 95-105 cubic feet depending on vessel type

93
Q

Displacement tonnage

A

The volume of water displaced by a vessel - used in warships (see also ‘loaded displacement,’ which is the volume displaced by the vessel itself plus whatever it’s carrying)

94
Q

Light Displacement

A

The actual weight of an empty ship, mostly used by ship sale/purchase brokers to show scrappage value

95
Q

Dwt

A

The difference in tonnes between light and loaded displacement tonnage, representing the total weight a ship can carry including cargo, fuel and other supplies (See also DWAT, ‘deadweight all told,’ and ‘DWCC,’ deadweight cargo capacity)

96
Q

DWCC

A

Deadweight cargo capacity; the maximum weight of cargo a vessel can carry, not including fuel, stores etc. This is usually calculated with the assumption that fuel/stores are full, therefore over shorter journeys a vessel’s actual DWCC can increase

97
Q

Loadline

A

The deepest level a ship can sit in the water and still be considered safe; this is denoted by a circular disc with a line through. This is determined by the ship’s classification society, which supervises where the line is painted and issues the loadline certificate. Note that some owners opt to have their loadline higher, meaning they can load less, which reduces the ship’s NT and therefore reduces fees based on NT (e.g. port costs)

98
Q

Freeboard

A

The distance of hull between the waterlevel and highest continuous watertight deck; this is used to calculate safe loadlines

99
Q

Draught

A

The distance between the bottom of a ship (its keel) and the waterline

100
Q

Deadweight scale

A

A scale painted onto the bow of a ship indicating the volume it’s carrying based on its draught

101
Q

Grain cubic

A

Measurement of all total cargo space, based on materials such as loose grain which can flow into any small spaces in holds, around supporting columns etc

102
Q

Bale cubic

A

Measures the space in a cargo hold around any beams etc, based on bales of material which cannot flow into awkward spaces; usually 10% smaller than grain cubic

103
Q

Stowage factor

A

A measure of density of a cargo in cubic feet/tonne

104
Q

Deadweight cargo

A

Cargoes with a stowage factor of less than 40 cu ft/tn, meaning they are typically more limited by a vessel’s weight limit than hold space, e.g. iron ore. Note this can vary between the same commodity, e.g. British coal is usually deep mined/very dense and is therefore typically a deadweight cargo, whereas American coal is shallow mined/less dense and is typically a measurement cargo

105
Q

Measurement cargo

A

Cargoes with a stowage factor of more than 40 cu ft/tn; so called as they are more limited by the space they take up inside a hold than the weight capacity of the ship (e.g. lumber)

106
Q

Full up and down

A

A term used when cargo maxes out both the space inside a hold and the weight the vessel can carry

107
Q

Bulk carrier

A

Simplest design of ship, designed to carry a single cargo in bulk. They have a single deck with clear holds and large hatches. Double hulls have been mandatory since 2006

108
Q

Capesize

A

Vessels too large to fit through the Suez or Panama canals, usually over 75,500 DWAT (although the widened Panama can now accomodate up to 130,000 DWAT). These are mainly used for grain, coal and iron ore. They do not have gear. They usually have 9 holds of equal size and a raised forecastle for weather protection

109
Q

Panamax

A

The largest ships able to pass through the Panama; for dry bulk, this was 75,500 DWAT max, but has increased to 130,000 DWAT since the widening project. Many vessels that were considered capesize can now transit the Panama if part laden. Typically 7 holds, and some can be equipped with gear

110
Q

Handysize/handymax

A

20-35,000 DWAT; 5/6 cargo holds, likely to heave gear. Typically employed in steel or lumber trades, and therefore have square holds rather than hopper shaped

111
Q

Tweendecker

A

Multipurpose ships with two decks, used for containers/general cargo services and to transport items which are not easily containerised (e.g. things that are very long, such as steel or timber). Usually equipped with gear (may be heavy lifting gear) and a stern ramp. 2-5 holds; typically ships with fewer holds will have one very large hold to carry oversized items.

112
Q

Container ship

A

Used in regular liner trades; fully cellular (no need to lash containers). Usually 8-10,000 TEU but the largest is 18,300 TEU

113
Q

Ro-ro

A

AKA “roll on-roll off.’ Used for wheeled cargo, e.g. cars, machinery. Typically single hulled with ramps to drive on and off

114
Q

Cargo handling gear

A

Equipment that loads/discharges cargo on a ship; for bigger, specalised vessels this is usually done via on shore equipment

115
Q

Pumps

A

Used to load/discharge tankers; tankers will be fitted with their own pumps to discharge and rely on onshore pumps to load

116
Q

Slop tanks

A

A tank specifically designated for the collection of tank drainings, tank washings and other oily mixtures

117
Q

Wing tanks

A

Tanks either side of the main centre tanks on a tanker specifically for carrying water ballast; these are fully segregated to prevent them from becoming contaminated with oil

118
Q

Trimming

A

Applies to bulk cargoes like grain, where the top surface needs to be levelled out to make best use of the space avalible and to minimise the risk of cargo shifting

119
Q

Tallying

A

The proceadure of checking the number of packages as they’re loaded

120
Q

The Lein Clause

A

Designed to protect owners from non-payment of freight/demurrage etc; this gives the shipowner the right to retain possesion of the cargo until payment is made

121
Q

General Average

A

the proceadure whereby if a ship is involved in extrodinary expenditure to avoid damage to the ship or it’s cargo (e.g. diverting due to weather, war), both the cargo owner and the shipowner contribute to that expenditure

122
Q

Dispatch

A

In dry bulk chartering, the bonus paid to the charterer by the shipowner for early return of a vessel (the opposite of demurrage)

123
Q
A

Shipping Business (6 decks)

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