UNIT 1

SHIP DOCUMENTS

Introduction

The transportation of cargo by sea is a complicated matter.

Interests of all parties concerned must be matched and considered carefully.
These interests are best looked after by a proper administration that comprises the use of
many different documents. Explanations, descriptions and examples of the most important
documents are given bellow.
It is but a small part of the total bulk of documents one may come across in the mercantile
trade.
The filling out of all these documents may well be considered one of the most important
tasks on board vessels, because a careful management of both ship- and cargo-handling will
always be of great benefit for all parties concerned.
These parties are:
shipper (or consignor) the person or company who supplies or owns the cargo that will be
transported;
carrier the shipowner, usually referred to as the Owners;
consignee the person or company to whom the cargo will be delivered;
charterer the person or company who wishes to charter (hire) the vessel;
shipbroker, or agent the intermediary between shipper and carrier;
insurer the insurance company that will insure all parties from losses due to perils and
risks.

1.1 Charter Party

1.1.1 Introduction

A Charter Party is a contract between a shipowner and a person or company who wished to
charter (hire) a vessel or part of a vessel for the carriage of cargo from one port to another.

1.1.2 Chartering a ship definitions

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A Shipper is an individual or company with cargo to transport. A charterer is the individual
or company who hires a ship. A charter-party is the contract setting out the terms under
which the shipper contracts for the transportation of his cargo or the charterer contracts for
the hire of a ship. On a voyage charter, a ship earns freight per ton of cargo transported on
terms set out in the charter-party which specifies the precise nature and volume of the cargo,
the part(s) of loading and discharge and the laytime and demurrage. All costs are paid by the
shipowner. A consecutive voyage charter is where the vessel is hired to perform a series of
consecutive voyages between A and B. A Contract of Affreightment (COA) is signed when a
shipowner undertakes to carry quantities of a specific cargo on a particular route or routes
over a given period of time using ships of his choice with specific restrictions. The term
Period charter is used when the vessel is hired for a specified period of time for payment of
a daily, monthly or annual fee. There are three types of period charter, time charter, trip
charter and consecutive voyage charter. A time charter is where a ship earns hire monthly or
semi-monthly. The shipowner retains possession and mans and operates the ship under
instructions from the charterer who pays the voyage costs. A trip charter is fixed on a time
charter basis for the period of a specific voyage and for the carriage of a specific cargo. The
shipowner earns 'hire' per day for the period determined by the voyage. With a bare boat
charter the owner of the ship contracts (for a fee, usually long-term) to another party for its
operation. The ship is then operated by the second party as if he owned it.

1.1.3 Types of CP

These are basically two types of Charter Parties: demise and non-demise.

We speak of a demise- or bareboat Charter Party when the charterer charters the vessel
without its crew. The shipowner will provide the vessel the charterer will provide the crew.
Consequently, the charterer will take full responsibility for the operation of the vessel and
will pay all expenses incurred.
A non-demise Charter is used when the shipowner provides both the vessel and its crew.
A time Charter is used when the vessel is chartered for an agreed period of time, which may
extend from a few weeks to several years. A demise Charter Party is always a time Charter.
A voyage charter is a contract in which it is agreed that the vessel will be chartered for a
particular voyage. The majority of tramp cargoshipments are made on a voyage-charter
basis.
The most common terms that appear in Charter Parties are:
Bareboat Charter, Berth Charter, Clean Charter, Demise Charter, Gross Charter,
Lump sum Charter, Open Charter, Time Charter, Voyage Charter, all the terms
beginning with Free .... or Freight. , and many more.
All these terms are explained in the Glossary.

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1.1.4 Chartering a ship - A telephone conversation
BJ: Antwerpia Shipping. Bert Janssens speaking.
JM: Good afternoon. Your receptionist told me that you were the best person to talk to. Im
calling from Australia. My name is Jack McCarthy of Queensland Maritime Services. Your
company was recommended to me by a business associate.

BJ: Well, lets hope we can live up to the recommendation, Mr McCarthy. What can I do for
you?

JM: Im looking for a vessel to transport cargo.

BJ: Youve come to the right place. We can arrange for the shipment of bulk, liner, reefer or
project cargo, you name it. What type of cargo did you have in mind?

JM: Grain. 50,000 tonnes to be precise.

BJ: That wont be a problem, but Ill need to take more details from you of course. Can you
let me have the present location of the grain, and the port of destination?

JM: Well, Im looking to ship the grain from the Port of Gladstone to Tallin in Estonia.

BJ: OK, Gladstone thats in Queensland, isnt it? Yes, Im familiar with Gladstone,
although we normally ship coal from that region.

JM: That would be right. Gladstones the fourth largest coal export port in the world. This
time its grain though, and my timings pretty tight. I have a contract to get the grain to Tallin
within the month.

BJ: OK, Im just having a look at my screen here. Yes, I thought so. We have a Panamax dry
bulk carrier presently sailing from the Gulf to deliver grain in Japan. Its due to arrive in
Japan in three days time. That means that it will be open in four days time and then due to
return to Antwerp. It will be looking for a cargo such as yours to reposition into the North
Atlantic area; Ill just have to check if it ties in with our service from Antwerp to Helsinki
and on to Tallin. It should do though. That would suit your requirements, wouldnt it?

JM: Yes, indeed. Sounds just like what we need. Can you just run over the ships
characteristics to check that it fulfils our requirements? Im thinking about its speed, cargo
capacity, dimensions, handling gear and so on.

BJ: Certainly. As I said, its a Panamax bulk carrier, 69,100 dwt., built in Japan in 1994. Im
sure youre familiar with the vessel type, but basically it has a framework for the carriage of
dry solids in bulk without packaging. Grain, for example. It has a capacity of 70,000 metric
tonnes and sails at an average speed of 14 knots; thats an economical speed Im talking
about. You can visit our website for further information about the ships characteristics.

JM: OK, but can I just run over a couple of points with you? Im sure I dont have to tell you
that grain is a free running cargo. Its prone to shift in heavy weather and if the ships not up
to it this could threaten the safety of the ship herself. Heavy cargoes like these have to be

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loaded and discharged in a certain sequence, otherwise were talking about serious stress to
the structure of the ship. When loading grain, care has to be taken with the sequence of filling
the hatches and the cargo distribution, so that no undue stress is put on the vessel while
loading or later when moving in a seaway. Large waves can be a deadly hazard, you know.

BJ: Dont worry Mr McCarthy. Our chartering staff is experienced in many types of cargo
vessels. Were in the business of providing quality service to our customers. You can be sure
that our contractual arrangements will meet your needs. What type of contract were you
considering, by the way? Im assuming it wont be a bare boat charter, will it? A voyage
charter would best suit your needs, I think. And if things go well, and youre in the business
of shipping grain on a regular basis, we could always move on to a time charter in the future,
perhaps.

JM: Well, indeed, that might be something for the future, but its a voyage charter Im
interested in at the moment.

BJ: OK, we can put that together for you. Why dont I work on some details for you now, and
send you a proposal. Ill include voyage estimations and calculations for you. With the
voyage charter well be looking at price per ton here it was 50,000 tonnes of grain, wasnt
it?

JM: Thats correct.

BJ: And the ship has to arrive in Tallin in May, doesnt it?
th
JM: Yes. The grain has to be there by 28 May at the latest. That should be possible with the
Panamax though, shouldnt it?

BJ: Absolutely. Ill get this proposal off to you as soon as possible, Mr McCarthy, and dont
worry all the contract details can be negotiated to ensure that the vessel is capable of
handling the cargo in a damage-free manner. Can I just take your e-mail details?

JM: Certainly. Its jmccarthy@qms.com

BJ: McCarthy thats two cs, isnt it?

JM: Thats right. Capital m, small c, capital c. Thanks for your help Mr Janssens. I look
forward to hearing from you.

BJ: Youre welcome. If theres anything else you need, just call me. Goodbye now.

JM: Thanks and goodbye.

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1.1.5 Example of CP form

EXAMPLE: how to fill in a VOYAGE CHARTER PARTY

PART A

1. Preamble:
It is hereby agreed between the Owners and the Charterers that the Vessel being in every
respect fit for the carriage of the cargo shall proceed to the loading port indicated below or
so near thereunto as she may safely get and lie always afloat, and there load the cargo, which
the Charterers bind themselves to supply, and carry it with all the possible dispatch to the port
of discharge indicated below or so near thereunto as she may safely get and lie always afloat,
and there deliver the cargo. The carriage under this Charter shall be performed against
payment of freight and in accordance with the terms contained in Parts A and B this Charter
Party, of which the typewritten provisions of Part A shall prevail over those contained in Part
B to the extent of any conflict between them.

2. Owners
represented by (agent)_________________________________________________________

3. Charterers
represented by (agent)_________________________________________________________

4. Vessel:
a name ___________________________________________________________________

b GRT _______ NRT _________DWT (All Told on Summer loadline)_______________

c present position: __________________________________________________________

d (class, cubic capacity, equipment etc.) _______________________________________

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

5. Cargo: (quantity, packing, special features etc.)

A .. (full and complete / part) cargo of

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_____________________________
of which .. may be carried on deck.
..% more or less at .. (Owners / Charterers) option to be declared
when/on .... (actual commencement of chartering of
vessel)

6. Laydays (number of days allowed for loading) not to commence before 8 a.m. on

Cancelling date and time: (when the vessel must be ready for loading) .

7. Advance Notice of Readiness to load to be sent to (Shipper and Charterer)

_____________________________________________________________________

EXAMPLE: how to fill in a VOYAGE CHARTER PARTY (continued)

PART A

8. Loading:
a port(s): _________________________________________________________________

b time: (quantity per weather working day, total time for loading) ________________

c cost: (fixed price / free in stowed / f.a.s.) ____________________________________

d dunnage paid by (Owners or Charterers) _____________________________________

e stevedores paid by (Owners or Charterers) ___________________________________

f vessels agent appointed by (Owners or Charterers) ____________________________

g max. loaded draft in (salt / fresh) water not to exceed: _________________

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h shippers: ________________________________________________________________

9. Discharging:
a port(s): _________________________________________________________________

b time: (quantity per weather working day, total time for discharging) _____________

c cost: (fixed price / free out) ________________________________________________

d stevedores paid by (Owners, Charterers or Consignee) _________________________

e vessels agent appointed by (Owners or Charterers) ____________________________

f max. loaded draft in . (salt / fresh) water not to exceed: _______________

g Consignee(s): ____________________________________________________________
10. Freight-rate (the costs of transportation of the cargo by the vessel):
per 40 ft. Container on quantity .. (delivered/taken in).
11. Demurrage (compensation-payment when loading- or discharging time has been
exceeded):

a in loading payable by .. (Charterer / Shipper)

b in discharging payable by . (Consignee / Charterers)

Brokerage: % on freight and deadfreight is due to (agent) ....

.

For the owners: For the Charterers:

.. ..

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1.2 Bill of Lading (B/L)
1.2.1 Introduction
A Bill of Lading is a receipt for cargo brought on board a vessel.
It states the condition and terms in which the cargo was delivered to and received by the
vessel.
It forms the evidence that the carrier (shipowner) has received the goods and has promised to
transport the cargo to its destination.
A Bill of Lading (B/L) is a so-called Document of Title.
This means that he who owns the B/L is the owner of the goods it describes.
A B/L is a negotiable document, which means that it can be sold.

1.2.2 Bill of Lading definitions

In order to understand a Bill of Lading, it is important to be familiar with certain definitions.

'Carrier' Means the party named in the Signature Box on the face of this document. 'Merchant'
Includes any Person who at any time has been or becomes the Shipper, Holder, Consignee,
Receiver of the Goods, any Person who owns or is entitled to the possession of the Goods or
of this Bill of Lading and any Person acting on behalf of any such Person.

'Holder' Means any Person for the time being in possession of (or entitled to the possession
of) this Bill of Lading.

'Person' Includes an individual, group, company or other entity.

'Sub-Contractor' Includes (but is not limited to) owners and operators of any vessels (other
than the Carrier), stevedores, terminal and groupage operators, road, rail and air transport
operators and any independent contractor employed by the Carrier in performance of the
Carriage and any sub-sub-contractors thereof.

'Indemnify' Includes defend, indemnify and hold harmless whether or not the obligation to
indemnify arises out of negligent or non-negligent acts or omissions of the Carrier, his
servants, agents or Sub-Contractors.

'Goods' Means the whole or any part of the cargo received from the Shipper and includes the
packing and any equipment or Container not supplied by or on behalf of the Carrier.

'Container' Includes any container, trailer, transportable tank, flat or pallet, or any similar
article used to consolidate goods and any ancillary equipment.

'Carriage' Means the whole or any part of the operations and services undertaken by the
Carrier in respect of the Goods covered by this Bill of Lading.

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'Port of Loading' Means any port at which the Goods are loaded on board any Vessel (which
may not necessarily be the Vessel named elsewhere in this document) for Carriage under this
Bill of Lading

'Port of Discharge' Means any port at which the Goods are discharged from any Vessel
(which may not necessarily be the Vessel named elsewhere in this document) after Carriage
under this Bill of Lading.

'Vessel' Means any waterborne craft used in the Carriage under this Bill of Lading which may
be a feeder vessel or an ocean vessel.

'Combined Transport' Arises if the Place of Receipt and/or the Place of Delivery are indicated
on the face of this document in the relevant spaces.

'Port to Port' Arises if the Carriage is not Combined Transport.

'Shipped on Board' Relates only to the Container into which the Goods are manifested.

'Freight' Includes all charges payable to the Carrier in accordance with the applicable Tariff
and this Bill of Lading.

'Hague Rules' Means the provisions of the International Convention for the Unification of
Certain Rules relating to Bills of Lading signed at Brussels on 25th August, 1924 and
includes the amendments by the Protocol signed at Brussels on 23rd February, 1968, but only
if such amendments are compulsorily applicable to this Bill of Lading. (It is expressly
provided that nothing in this Bill of Lading shall be construed as contractually applying said
Rules as amended by said Protocol).

A Bill of Lading states:

- the name of the shipper, consignee and carrying vessel, and the name and address of the
person to be notified upon arrival of the shipment;
- description of the cargo (provided that it is not bulk cargo), including any shipping
marks, package numbers in the consignment, contents, cubic measurement, gross weight
etc.)
-port of loading and port of discharge;
- full details of freight, terms of the contract of carriage and terms of payment
(Freight Prepaid or Freight Payable at Destination, sometimes referred to as
Freight Collect);
- the date that the cargo was received for shipment and loaded on board the vessel;
- number of Bills of Lading signed on behalf of the master or his agent;
- masters signature (or his agents) and the date.

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1.2.3 Types of Bs/L
There are many types of Bills of Lading. The most common are:
Alongside B/L, B/L to bearer, B/L to order, Claused B/L, Clean B/L, Foul B/L,
Stale B/L, Combicon B/L, Direct B/L, Groupage B/L, Straight B/L, Received for
Shipment B/L, Shipped B/L, Through B/L, Ocean B/L, Inland Waterway (or River-)
B/L, and more.
All these Bills of Lading are described in the Glossary (Ch. 3).

EXAMPLE: how to fill in a BILL OF LADING to be used with Charter Parties.

B/L No. 1 of 3 (2 and 3 non-negotiable)

The cargo described below has been shipped at the Port of Loading..
in apparent good order and condition by (Shipper) ...

on board the vessel for carriage to the Port of

Discharge ..or so near thereto as she may safely get the goods specified below.

Consignee: ..

Notify address:

Place of delivery by precarrier: ...

Place of delivery by oncarrier:

Forwarding agent: ...

EXAMPLE: how to fill in a BILL OF LADING (Continued)

Terms:
This Bill of Lading has been issued subject to terms, conditions, benefits and exceptions as
set out in the Charter Party dated . Governing this voyage, except

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in so far as may be indicated on the reverse of this Bill of Lading.

SHIPPERS DESCRIPTION OF CARGO (CARRIER NOT RESPONSIBLE)

Marks / number Description of goods, package and particulars

.
.
.
GROSS WEIGHT: .

Freight: . (Prepaid / Collect)

Time used for loading: . days . hours.

In Witness whereof the Master or Agent of the said vessel has signed the number of Bills of
Lading indicated below.

Place and date: . Signature: .

Number of original Bs/L:

1.3 Captains Declaration

Upon arrival in a port the captain must present a declaration to the authorities, in which all
the vessels particulars during the past voyage are stated.
A Captains declaration must contain:
vessels name, call sign and flag, owner and charterer, tonnages, dimensions, times of arrival,
embarkation of pilot, number of tugs used, draft on arrival, cargo to be loaded and/or
discharged, number of holds, hatches, decks, derricks and winches, type of engine and
propeller, service speed, bunkers on board, last port of call, next port of call or destination,
and other requested data.

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1.4 Cargo Manifest
The Cargo Manifest is a document that contains all the important information concerning the
cargo that the vessel is carrying to the destination(s).
As a rule the Manifest is made up by the agent. It contains the name of the vessel, port of
loading, port of destination, B/L-number, shipper, consignee and cargo-particulars.

EXAMPLE: THE CARGO MANIFEST

MV .
MASTER
MANIFEST OF CARGO FROM TO ..

B/L No. Shippers Consignee Marks & Description Weight Remarks

and party numbers of goods
to be
notified

1.5 Notice of Readiness

In the Notice of readiness (NOR) the master informs the shipper, the consignee (receiver)
and the authorities that the vessel is ready to load or discharge the cargo.
It states the ports of loading / discharging, the time of commencement the loading /
discharging, the type of cargo and its metric tonnage.
The reporting day is the day that the NOR must be handed over to the charterer according
to the Charter Party. If the readiness of the vessel is delayed by whatever reason, laydays will

12
be counted from the beginning of the next day after the reporting day, unless the Charter
party states otherwise.
By detention is understood any delay in the loading or discharging of the cargo.
Compensation of damages that occur due to detention is called demurrage.

EXAMPLE how to write a NOTICE OF READINESS

Messrs. Shippers, Receivers and Port Authorities.

M.T. Corrona
Voy. No. O1390 / N-leg.
Port: Rotterdam-Waalhaven.
Date: 29 08 2002.

Dear Sirs,

This is to notify you that the above vessel under my command arrived at the Port of
Rotterdam at 2300 hrs August 28 and is ready in all respects to load a cargo of 6500 metric
tons of ACETON and 350 metric tons of METHANOL in accordance with the terms and
conditions of the Charter Party dated 31 July 2002.
Please acknowledge the above.

Yours Truly,
P.C. Siebers, Master of M.T. Corrona.

Notice accepted at 1700 hrs on August 29 2002

Signature .. (Shippers / Receivers) Agent.

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1.6 Mates Receipt

After the cargo has been received by the vessel, the first mate will make up a receipt wherein
all the particulars and amounts of the cargoes that were loaded are stated, including any
shortages or damaged cargo items. This Mates Receipt is then transferred to the shipper.
When the amount of cargo received by the vessel does not agree with the amount that is
stated in the Charter Party, we speak of deadfreight (which is actually the amount of cargo
missing).
The master will now make up a Deadfreight Letter in which the shortage is stated.
Now the owners of the cargo will have the right to claim damages.
The Bill of Lading will then become foul, a term that indicates that cargo or part of it is
damaged or missing. A clean Bill of Lading is when no cargo is damaged or missing.

EXAMPLE: THE MATES RECEIPT

SHIPPER: _________________________________________________________________
CONSIGNEE ______________________________________________________________
ADDRESS TO BE NOTIFIED _________________________________________________
VESSEL ___________________________________________________________________
PORT OF LOADING ________________________________________________________
PORT OF DISCHARGE ______________________________________________________
FREIGHT _________________________ (PREPAID / PAYABLE AT DESTINATION)
Number of original B/L _______________________________________________________

CARGO

MARKS & NUMBERS DESCRIPTIONS OF GOODS & PACKAGES GROSS

WEIGHT
___________________ ______________________________________
______________

___________________ ______________________________________
______________

___________________ ______________________________________

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______________
SPECIFICATION OF FREIGHT AND CHARGES IN

TO:
___________________________________________________________________________
___
MASTER ..

EXAMPLE: how to write a DEADFREIGHT LETTER

From M.T. Corrona.

To Molina Shipping.
Date 19 07 2002.

Dear Sirs,

Please be informed that the vessel under my command has loaded light of deadweight to the
amount of 510 metric tons of Methanol.
According to the vessels ullages taken upon completion of loading at the COMCO-
Installation at Swansea the cargo totaled 7,990 metric tons of Methanol.
However, you inserted a quantity of 8,500 metric tons in the Bill of Lading, which means
that there is a difference of 510 metric tons.
We will therefore sign a foul Bill of Lading.
I herewith submit formal notice, reserving owners right to claim deadfreight as they may
consider necessary as per covering Charter Party.
Please acknowledge receipt of this letter.

Yours faithfully,
H. Wentink, Master of M.T. Corrona.

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1.7 Sea Protest and Letter of Protest

A Sea Protest, or Note of Protest, is a legal document declaring that due to circumstances
beyond control the vessel has suffered losses of cargo or damage to ship and/or cargo, or that
the Master has had to take actions that may render his owners liable to legal procedures by
other parties. This declaration is presented to all the parties concerned in the event of a claim
in order to avoid liability for losses of cargo or damage to the ship.
Protest must be made up in the event of the following:
- general average (i.e. indemnity for all parties because deliberate infliction of damage has
avoided greater damage);
- wind and/or sea conditions that have caused damage or such a delay that the vessel has not
been able to make its cancelling date;
- a breach of contract by the Charterer, the Consignee or their agents (e.g. undue delay,
failures with loading or discharging, refusal to pay freight or demurrage etc.)

The protest itself is a more or less standardized form that is made up before a Notary Public
or the Consul of the country in which the vessel is registered, in witness of the Master and
crewmembers who have knowledge of the facts. All the relevant information, such as log
entries and descriptions of circumstances, must be attached to the Protest.
Therefore a Protest is often preceded by a written Statement of Facts, made up by the
Master, to specify the circumstances that caused the damage or loss.

EXAMPLE: how to write a STATEMENT OF FACTS

I, Peter Christian Siebers, Master of The Good Ship Ocean Empress, call sign PKNN, GT
8448 tons, properly stowed, manned and equipped, of Dutch Registration, owned by
Reefer-Liners / Rotterdam Netherlands, hereby declare that my vessel, underway from
Recife to Rotterdam on July 9th, 2003, with a cargo of 2,084 containers, met with adverse
weather on the said date that caused extreme rolling and pitching of my vessel.
To protect vessel and cargo from any losses or damage I ordered to reduce speed to half
ahead. Therefore our ETA-Rotterdam was retarded, which has resulted in a delay of 18
hours.
I hereby deny all responsibilities for any damage caused by the bad weather situation.

Signed: P.C. Siebers, Master.

In the Extending Protest the Master has the right to add more details and information to the
original Protest at a later stage when more relevant facts have come to light.

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 EXAMPLE: THE SEA PROTEST

Note of Protest
On this day, the of... in the year of the Lord two thousand and before
me, Peter S. van den Berg, Notary Public at the city of Rotterdam Netherlands, duly
admitted and sworn in, personally appeared ., Master of MV ,
GT or thereabouts, registered at .., and belonging to the port of
., sailing from to .
on the . day of in the year two thousand and ..... with
a cargo of . and arrived in the Port of .
on the . day of . in the year two thousand and
WHO NOTED AND ENTERED into my Register his Protest, to be extended if necessary,
against rough seas, wind and heavy rain, particularly against damage and loss to the said
cargo during the sea voyage.
Signed before me - P.S. van den Berg
Notary Public at . hrs on date .
Master: .. (MV ...)
Agents: Messrs

A Letter of Protest is a written declaration that is intended to record complaints concerning

any operational matter that is performed by a recipient or other party.
It is not a legal document, but simply a report of operations, contractual agreements etc. that
have gone wrong. A Letter of Protest will protect the Master from any blame in case of
mishandling of cargo, delivery of wrong fuel, violation of regulations, berths unclear,
equipment that has become inoperative, misconduct or negligence by shore gang etc., but also
when there is a discrepancy between ship and shore figures or when passing barges cause
ranging or wash-damage while the vessel is being loaded and discharged.
Copies of the Letter of Protest should be sent to other parties concerned and should always
end in a formal manner.
Like so:
The undersigned hereby declares that the Bill of Lading was signed under protest for reasons
stated above and holds you and / or Charterers responsible for any delays and consequences,
or: Please consider the above as letter of protest in due and legal form.

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 EXAMPLE: how to write a LETTER OF PROTEST

MV Lisa. Voy.: Recife Rotterdam

Lying at: Rotterdam-Botlek. Bert/Terminal: Merwedehaven 6 A
Cargo: 8,500 tons refrigerated cargo.
Date: 15 October 2002.

To: Greenwood Services.

Dear Sir,

Please be advised that there is a discrepancy between ship- and shore figures covering
8,500 tons refrigerated cargo.
During discharging at your terminal this 15 October 2002 of the above mentioned cargo
our first mate observed the following fact that was detrimental to the quantity / quality of
the cargo: inadequate stowing and transportation of 300 tons of frozen fish, resulting in
severe deterioration of quality due to thawing. In order to protect the interests of our
principals, Messr. Pronk-Seafood Rotterdam, we regret having to advise you on their
request and on their behalf, that they hold you responsible for all costs, expenses and/or
detrimental consequences which might result from the above.

For receipt, Greenwood services

Master: J. Griffioen Services
Signature: + stamp
. ..

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1.8 Glossary: IDIOMS AND EXPRESSIONS IN DOCUMENTS

Abandonment = Give up ownership of damaged vessel in favour of the insurer.

Accumulative hours = Extra hours for loading in case the vessel is not ready to be loaded yet.
Act of God = The owner of the vessel cannot be held responsible for damage sustained to the
vessel due to natural disasters.
Address commission = Commission to be paid by the charterer.
Advance freight = Advance payment.
Affreightment (Contract of -) = Charter party.
Against delivery of the documents = On production of the documents.
Agency fee = Fee to be paid to ship's agent for services rendered.
Agent = Lloyd's Agent: mainly deals with damages to cargoes
Managing Agent: mainly deals with reinsurance and claims.
Members' Agent: intermediary between insurer and Lloyd's Members.
Airway bill = Bill of Lading for cargo transported by air.
All purposes = Number of hours or/and days stated apply to both loading- and discharging-
activities.
All time saved both ends = Calculation concerning dispatch for loading or discharging.
All told = Cargo carrying capacity, bunkers and equipment have been stated.
Alongside B/L = Bill of Lading: cargo received "alongside the embankment".
Always safely afloat = Clause that ensures the allocation of a berth for the laden vessel.
Apparel = Vessel's equipment.
Apparent good order and condition = Cargo is in good condition and without any damaged
visible upon signing of charterparty.
Arrest = Act of seizing and holding a vessel under lawful authority.
As near thereto as she can safely get = Clause that ensures the allocation of a berth for the
laden vessel.
At and from = Insurance of vessel commences once the vessel is in readiness.
Audit = Annual report concerning the insurer's solvency,
Authority to pay or purchase = Authorisation to buy or negotiate.
Average = All damages suffered during a voyage, including extras.
Average (General -) = Damage to vessel and cargo.
Average adjuster = Damage-expert
Average statement = Document stating the damage and liabilities for parties concerned.
Back letter = Warranty / supplement to a contract.
Bale space = Volume of cargoholds (below-deck) for general cargo.
Bareboat charter = Vessel is chartered without crew.
Barratry = Malicious infliction of damage to vessel and/or cargo.
Bay-plan = Stowage plan for containers.
Berth charter = Charterparty concerning undefined cargo (at berth).
Bill of Health = Health Certificate.
Bill of Lading = Document containing full particulars of the cargo on board a vessel.
B/L to bearer = Bill of Lading "to bearer".
B/L to order = Bill of Lading "to order".

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Booking Period = Period when charterers can book cargoes in advance according to a certain
tariff (rate).
Both-to-blame collision clause = Clause for when two vessels involved in a collision are
"both-to-blame"; extent of "blame" of each vessel will determine liabilities.
Both ends = Agreements taken over apply for both port of loading and port of discharge.
Break down clause = Clause concerning suspension of payment of rent due to damage
sustained.
Breaking bulk = Commencement of discharging the vessel.
Broken stowage = Lost stowage space.
Broker = Ship-broker / intermediary.
Brokerage = Ship-broker's fee.
Builder's certificate = Ship's certificate issued by the shipyard where she was built.
Bunker clause = Charterer agrees to buy the remaining bunkers present in the vessel at
current rates.
By first available steamer = On earliest occasion.
Cancelling date = Day on which the vessel must be ready for loading.
Captain's Protest = Vessel's declaration.
Casualty Book = Lloyds register of maritime disasters and fosses.
Central Fund = Insurers' guarantee-fund.
Certificate of quality = Certificate of survey.
Cesser clause = "Dead-freighf-clause, offering lien on the cargo to the shipowner.
Claused bill of lading = Foul Bill of Lading (cargo damaged and/or incomplete).
Clean bill of lading = Bill of Lading concerning undamaged and complete cargo.
Clean charter = Charter without unusual conditions.
Clean ship = Tanker carrying petrol or Diesel Oil.
Clear days = First and last days of loading and discharging are not counted.
Closing date = Final date when cargo can be offered to be transported by ship.
Collect freight = Payment of cargo upon delivery.
Collision clause = Clause whereby the insurer agrees to pay part of the collision-damages.
Combiconbill = Bill of Lading concerning combined transport-operations.
Commission past us = Certain percentage of commission will be paid "without the broker's
concern".
Compensation = Payment for damages sustained.
Consignment clause = Clause to determine which agent will represent the vessel in port.
Consignment note = Receipt / Bill of Lading for "cargo by rail".
Continuation clause = Clause that indicates that the insurance will be continued.
Contributory value = Additional charges in case of damage to be paid by each party involved.
Convenient speed-clause = Clause concerning safe speed of the laden vessel.
Counterfoil waybill = Duplicate Bill of Lading.
Cover note = Closing-note containing the agreements and data of an insurance.
Damages of detention = Compensation for damages caused by delays.
Days of demurrage = Unforeseen and unscheduled days on which the vessel has had to
remain in port.
Days running = Consecutive days.

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Dead freight = Missing cargo (-items).
Deadweight = Weight of all the contents the vessel is able to carry.
Deals, battens and scantlings = Distinctions made for the transportation of wood.
Deferred rebate = Postponed refund of a fraction of the amount payable.
Delivered free = Delivered free of charge.
Delivery order = Note of delivery with a Bill of Lading.
Demise charter = Bare Boat Charter (vessel is chartered without crew).
Demurrage (charges) = Delaying of a ship and consequent compensation-payment when
loading or discharge-times have been exceeded.
Despatch days = Days won while loading or discharging.
Deviation clause = Exemption of liability in case of compass error resulting in exceeded
scheduled times.
Direct Bill of Lading = Bill of Lading "from port of loading to port of discharge".
Dirty ship = Tanker carrying crude oil or residual oils.
Disbursements = All the expenses in port concerning the vessel.
Distance freight = Freight-price is raised to compensate for extra sailing-days.
Distress freight = Cargo to be stowed at reduced rates into unused stowage space.
Dreading = Charterer has claimed the right to carrv both bulkcargo and general cargo.
Due diligence = Clause that implies that 'The carrier shall properly and carefully load, handle,
stow, carry, keep, care for and discharge the goods carried".
Equitas = Insurance that will cover losses of the previous year.
Ex quay = From the quay.
Exemption clause (Exemption from Liability) = Clause in transport contract that excludes
responsibilities for certain dangers.
Excess of Loss Cover = Insurance against losses due to inadequate insurance, insurance
continuation-clause.
Expiration clause / Expiring (expiry) date = Final date of validity.
Fair wear and tear = Charterer not responsible for common wear and tear.
Fast goods = Cargo per express.
Final sailing = Vessel is outward and has passed port-limit.
Fixing letter = Confirmation of a voyage charter.
Flat rate = Tariff when destination is unknown.
Floating policy = Insurance policy with general conditions.
Foul B/L = Incomplete cargo delivered on board: cargo (items) are damaged or missing.
Franchise Fee = Amount of money to be paid by the insurant in case of damage. Post-paid.
Free alongside ship (f.a.s.) = Derricks must be able to reach the cargo on the quay.
Free in and out = Loading and discharging for account of the shipper or consignee (receiver).
Free in and out and stowed = All expenses for account of consignee, except those for loading
and discharging (for account of shipper).
Free of capture and seizure = Free of any damage.
Free of incumbrances (-encumbrances) = Vessel free of mortgage or any other liabilities.
Free of turn = Lay-days to be counted from time of arrival.
Free on board (f.o.b.) = On Board and post-paid.
Free on rail = Post-paid by rail.

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Freight at destination = Freight to be paid upon delivery at destination.
Freight, demurrage and defence = Set up and defend a legitimate claim.
Freight forward = Freight to be paid upon delivery at destination.
Freight policy = Insurance policy for loss of cargo.
Freight rate = Cost that must be paid for the transportation of cargo.
Full and complete cargo = Full cargo when the vessel is "full and down".
Full and down = Fully laden vessel is floating on her loadline.
Full interest admitted = insurance whereby the insurant's interest is difficult to define.
Full reach and burden = Total volume will be used to stow cargo.
Full terms = Percentage deducted for fees, rebates, etc.
General Average = Indemnity for all parties in case of deliberate infliction of damage in order
to avoid greater damage.
Good Ship = Vessel has been classed and was found seaworthy.
Grain cargo certificate = Certificate of proven seaworthiness for grain carrier.
Grain space = Volume of cargo holds to be used for bulk cargoes.
Gross charter = All expenses for account of shipowner.
Groupage B/L = Transportation of various cargoes to various consignees by the same vessel.
Heavy grain = Wheat, rye and corn.
Hours running = Consecutive hours.
In dispute = Disagreement concerning exact amount of cargo or number of cargo-items after
counting.
In geographical rotation = Vessel has been authorised to call at the various ports in a
geographical order.
In regular turn = Vessel must wait her turn; number of laydays to be counted from arrival at
loading or discharging berth.
Inchmaree clause = Insurance covering negligence or latent deficiencies.
Indemnity = Compensation for damage or loss to be paid to the insurant.
Inherent defect, quality or vice = Carrier is not responsible for damage or loss due to latent
deficiencies.
Inland waterway B/L = Bill of Lading for inland transportation of cargoes.
Inland waterway consignment note = Receipt of cargo transported via inland waterways.
Jason clause = Clause that gives the carrier the right to claim a contribution from the General
Average.
Jerque Note (Jerk Note) = Custom's declaration that the vessel is free from any contraband
goods.
Jettison = Putting cargo overboard to prevent greater damage to vessel or/and cargo.
Latent defects = Deficiencies that cannot be detected with the naked eye.
Lawful trade = Mentioning of types of cargoes that are usually transported from a specific
port to prevent smuggling.
Laydays = Number of days allowed (according to the charter party) for loading or
discharging the vessel.
Letter of indemnity = Policy attached to Bill of Lading for compensation for damage or loss
to be paid to the insurant.
Letter of protest = Written objection.

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Lien on the cargo = The owner has the right to use the cargo as security for expenses made in
case of deadfreight or demurrage,
Light grain = Barley and oats.
Lighterage = Fee to be paid for the hiring of lighters. Percentage of insurance.
Line Liner = Vessel plying between fixed home port and port of destination, usually
according to a fixed prearranged schedule.
Lloyd's Open Form = Standard salvage-contract on a "no cure-no pay" basis.
Lloyd's Policy Signing Office = Lloyd's office that evaluates and validates applications for
insurances.
Lloyd's Standard Form of Salvage Agreement.= see "Lloyd's Open Form"
Long Tail (-Business) = Insurance-claim concerning a long-term insurance.
Loss Book = "Casualty Book".
Lumpsum charter = Charterer will pay a fixed amount of money, irrespective the amount of
cargo.
Manifest = List of cargo on board.
Maritime perils = Dangers on the high seas.
Mate's receipt = Receipt of the cargo delivered on board the vessel.
Misrepresentation = Charter Party containing incorrect data about particulars and details.
Negligence clause = Insurance against negligence or latent deficiencies.
Negotiable Bs/L = Bill of Lading that allows trading (selling) of the goods it describes.
Net capacity = Those spaces that are not used for cargo stowage deducted from the gross
tonnage.
Net charter = Charterer will pay both current disbursements and those in the next port.
No cure, no pay = Payment only after a successful completion of the operation.
Non-closure = Withholding facts and data when entering into an insurance.
Notice of readiness = Written declaration that the vessel is ready to be loaded or discharged.
Notify address = Person or company that must be informed of the arrival of the cargo.
Ocean B/L = Bill of Lading for the high seas.
Off hire clause = Clause concerning the suspension of payment of the charter due to damage.
On her beam ends = Vessel has a list due to shifting cargo.
One being accomplished, others to stand void. = Bill of Lading: "one aspect having been
fulfilled, the other of no importance or not legally binding".
Open charter = Charter in which cargo and destination hare not mentioned.
Open cover = Cargo-insurance for a certain period, whereby the maximum value per cargo-
item has been recorded.
Open year = Period (a year) will not be concluded and closed when an exact calculation of
outstanding risks cannot be made yet.
Opening bank = Credit-opening bank
Optional cargo ... or substitute. = Cargo without destination when being loaded. The
shipowner has the right to designate another vessel for the charter.
Original stamped Bs/L = The original Bills of Lading.
Out of pocket expenses = Additional expenses made by the vessel underway.
Outstanding (losses or claims) = The amount of damage sustained has not been agreed upon
yet.

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Outward clearance = Formalities for export of cargo.
Overside delivery clause = Receiver of cargo is allowed to discharge with his own lighters.
Packing list = Mailing list.
Paramount clause = Clause that indicates that the Bill of Lading is subject to other laws as
well.
Partial shipment = Transportation of cargo in parts.
Particular average loss = Part of the cargo damaged or lost due to a risk that is being covered
by the insurance.
Particular charges = Expenses made for the preservation of the vessel.
Per diem basis = Bunkers for account of the shipowner.
Perils of the sea = Damage that was caused by seawater, stranding, storm or collision.
Personal Lines = Insurance of personal risks.
Picked port = Port of call that was chosen during a voyage.
Policy proof of interest = Recognition of the insurant's interest.
Premium Advice Note = Insurance-letter from the intermediary to Lloyd's.
Prompt ship = The vessel will commence loading soon after the Charter has been signed by
the parties.
Proposal Form = Application for an insurance.
Protection & Indemnity Club (P&l) = Mutual insurance by shipowners for uncovered risks.
Proximate Clause = Approximate or immediate cause of damage.
Railage = Transport by rail.
Rebate = Refund of a fraction of the amount payable.
Received for Shipment Bill of Lading = Cargo has been handed over to the shipowner, but
may not be be on board yet.
Recta = Registered (nominal) Bill of Lading.
Regular shipping service = Liner-service.
Reinsurance = Insurance of the insurance.
Reporting day = The day on which the master hands in the "notice of readiness".
Representations = Written or oral declarations.
Restraint of rulers = Measures taken against the vessel by the authorities.
Retention = (With reinsurance) part that the insurer is prepared to insure.
Return freight = Return cargo.
Reversible lay-days = The time lost or won during the loading of the cargo can be
compensated during discharging,
Revocable credit = Credit that can be withdrawn.
Risk the run = Not joining convoy.
River B/L = Bill of Lading for inland navigation.
Rota Committee = Lloyd's balloting-committee.
Running down clause = Clause stipulating that the insurer will pay part of the damage caused
by collision.
Safe arrival insurance = Insurance covering consequences of an unsafe voyage.
Safe berth = Berth considered safe for laden (full-and-down) vessels.
Safe port = Port considered safe for laden (full-and-down) vessels.
Said to weigh = The reported weight of the cargo is doubtful.

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Scale discharge = Discharging will take place according to a certain tonnage-scale.
Seasonal port = Port that is closed during winter months.
Seizure under legal process = Embargo on vessel and/or cargo.
Ship to be loaded or discharged according to custom of port = Time and duration of loading
and/or discharging depends on various circumstances.
Ship to be loaded or discharged as customary = Time and duration of loading and/or
discharging
depends on regular circumstances.
Ship to be loaded or discharged with all despatch = Loading will be carried out as quickly as
possible.
Ship to be loaded or discharged with customary despatch = Loading will be carried out at the
usual speed.
Shipbroker = Intermediary between shipper, consignee (receiver of cargo) and shipowner.
Shipment instalments = Transportation in parts.
Shipment port = Port from which the cargo is shipped.
Shipped B/L = Bill of Lading on board.
Ship's protest = Maritime declaration of the vessel.
Signing down = Insurance involving several insurers proportionally.
Sister ship clause = Insurance-clause concerning a collision between two sister ships.
Short Delivery = Part of the cargo is missing at delivery.
Short Tail = Claim concerning a short-term insurance.
Short weight = Insufficient weight.
Slack bags = Bales that have not been completely filled or that have been damaged.
Spot vessel = Vessel due to commence loading soon after the charterparty has been signed.
Stale B/L = B/L that is not presented "in time", but after the cargo has arrived.
Straddleship = Vessel whose times of arrival and departure have been planned in two
consecutive months.
Straight B/L = Registered / personal Bill of Lading.
Subject open = Charter accepted, provided the charterparty was accepted elsewhere, too.
Subject ship being free = Charter accepted, provided the charterparty was accepted
elsewhere, too.
Subject to licence being granted = Charter accepted, provided that the authorities do not
object.
Sublet = Leasing of the vessel to a third party by the charterer.
Subrogation = Clause that will allow the insurer to take over the insured party's rights.
Substituted expenses = Expenses made to replace cost for general average.
Sue and labour clause = Clause concerning measures to be taken to prevent loss or damage.
Supercargo = Supervisor during loading and discharging,
Surcharge = Additional (extra) sum of money to be paid.
Surf days = Days during which loading cargo from lighters will not be possible because of
swell in the roadstead will not be charged.
Tackle clause = The consignee (receiver of cargo) can discharge the cargo with his own
lighters.
Tally = Counting of cargo items.

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Tare = The weight of the container, box, sack or crate in which cargo has been packed.
Third Party Liability = Insurance for liability according to law.
Through Bill of Lading = Bill of Lading when several shippers are involved in the
transportation of cargo.
Timber trade certificate = Certificate concerning a cargo of timber to stowed on deck.
Time charter = Vessel will be chartered for a specific period of time.
Time policy = Insurance-policy covering a specific period of time.
Time sheet = Scheme to calculate the number of laydays.
Touch and go = When a vessel is aground for a very short period.
Trip charter = Voyage charter (vessel is chartered for a voyage).
Uberrimae Fides = "Utmost Good Faith".
Ullage = Empty space on top of a liquid to allow for expansion.
Underwriter = Insurer.
Underwriter's surveyor = Insurer's expert.
Unvalued policy = insurance policy in which the value of the insured property is not
mentioned.
Valuation clause = Clause containing the ship's value as agreed by both parties.
Voyage charter = Vessel is chartered (hired) for one or an agreed number of voyages.
Voyage policy = Insurance policy will be valid for a voyage.
Waiver clause = Clause that gives the insurer the right to enter into a salvage contract.
Warranted free from particular average = Insurance against total loss, "except in the case of
General Average"
Warranties = Shipowner's obligations.
Warranties (express -) = Shipowner's obligations expressed in contracts.
Warranties (implied -) = Shipowner's obligations not expressed as such in contracts.
Waybill = Bill of Lading for transportation by road.
Weather working days = Working-days weather permitting.
Without prejudice = All rights reserved.
Written Line = Percentage that indicates the extent of risk the insurer is prepared to insure.

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Comprehension Exercises
Ex. 1 Study the following NOR and draw up a similar one by using the following new data:
Constanta Port, 9, 000 tons timber, Oct. 1, 2014

Messrs. Shippers, Receivers and Port Authorities.

M.T. Corrona
Voy. No. O1390 / N-leg.
Port: Rotterdam-Waalhaven.
Date: 29 08 2012.
Dear Sirs,
This is to notify you that the above vessel under my command arrived at the Port of
Rotterdam at 2300 hrs August 28 and is ready in all respects to load a cargo of 6500
metric tons of ACETON and 350 metric tons of METHANOL in accordance with the
terms and conditions of the Charter Party dated 31 July 2012.
Please acknowledge the above.
Yours Truly,
P.C. Siebers, Master of M.T. Corrona.
Notice accepted at 1700 hrs on August 29 2012
Signature .. (Shippers / Receivers)
Agent.

Ex. 2 Suply the missing word(s)

The reporting day is the day that the .. must be handed .. to the charterer according to
the Charter Party. If the readiness of the vessel is delayed by .. reason, .. will be counted
from the beginning of the next day after the reporting day, .. the Charter party states
otherwise.
By detention is understood any .. in the loading or discharging of the cargo.
Compensation of damages that occur due to detention is called demurrage.

Bibliography / Webography

1. Georgescu, M. , Maritime English VII, Students Coursebook, (on www.cmu-edu.eu)

2. Georgescu, M., Glossary of Cargo-related Terms (2016), Editura Nautica, Constana,
ISBN 606 681 078 - 2;
3. Van Kluijven, P.C. The International Maritime Language Programme, Alk & Heijnen
Publishers, Alkmaar, 2005.

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