CHARTERING TERMS

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C.A. - Central America (Le. - WCCA or ECCA depending which side).

CABAF - Currency and bunker adjustment factor surcharge applied by some shipping lines, and set by some liner conferences on behalf of their members, which consists of a currency adjustment factor and a bunker adjustment factor combined. This surcharge is normally expressed as a percentage of the freight rate.

CAD - Cash Against Documents - Term of sale whereby the buyer receives the commercial documents, including the Bill of Lading, which is the document of title, on paying the seller for the goods. This term is also used to qualify a contract of carriage in which the carrier releases the Bill of Lading to the shipper in exchange for the goods.

CAF - Currency Adjustment Factor - Surcharge applied to freight rates by shipping lines or set by liner conferences on behalf of their members. The purpose of the currency adjustment factor is embodied in the E.S.C. (European Shippers' Councils) / C.E.N.S,A. (Council of European and Japanese national Shipowners' associations ) Code. It is to ensure that the revenue of the shipping lines is unaffected by the lines in relation to the tariff currency. The code provides formulae, adopted by many conferences, for calculating the CAF and, since the values of currencies can move upwards as well as downwards, the CAF which is normally expressed as a percentage of the freight, maybe negative as well as positive. Thus a tariff rate of $100 becomes $108 when subject to a plus 8 per cent CAF.

Calendar Month - A "month" in a time charter usually means a calendar month, which extends from the given day of the month to the day of corresponding number in next month. If that next month, being shorter, does not have a day of that number, the calendar month expires on the last day of that month. For example, if a ship is delivered on August 31st, the 1st month's hire expires September 30th; the next month's hire would be payable on October 31st, not October 30th.

Canal Transit Dues - Charge levied by a canal authority, such as that for the Suez Canal, for transiting. This charge is based on the ship's tonnage.

Cancellation (of a charter) - Repudiation of the contract, most often by the voyage charterer when the ship misses her canceling date, or by a time charterer when the ship is off hire for more than the period stipulated in the Charter-Party.

Cancellation Clause - Charter Party clause specifying the last date known, as the canceling date, on which a ship must be available to the charterer at the agreed place. If the ship arrives after the canceling date, the charterer may have the option to cancel the contract.

Canceling Date - Last date, agreed in a voyage Charter-Party or time Charter-Party, by which a ship must be available to the charterer at the agreed place at the commencement of the contract. If the ship is not available by that date, the charterer may have the option to cancel the charter under certain circumstances and clauses of the Charter Party.

Cargo Sharing - Reserving by the authorities of a country of the ocean carriage of its exports and imports to the ships of its own fleet and that of the countries with which it trades, usually in equal proportions, often allowing the ships of other countries a smaller share.

Cargoworthiness - Fitness of a ship to carry a particular cargo.

Cargoworthy - Said of a ship, being fit to carry a particular cargo.

Carrier - Party who enters into a contract of carriage with a shipper. The carrier may be the owner or charterer of a ship.

Carryings - Quantity of cargo carried over a period of time by a shipping line or by all the members of a liner conference. This quantity is a factor in determining the profitability of the service and the need, if any, to apply an increase to the freight rates.

CBR - Commodity Box Rate - Freight rate per shipping container for a particular commodity.

Centrocon - Voyage Charter-Party used for shipments of grain from the River Plate.

Cesser Clause - Clause in a voyage Charter-Party which seeks to relieve the charterer of all responsibility under the contract once the cargo has been shipped. Often this clause incorporates a provision for the shipowner to have a lien on the cargo for freight, deadfreight and demurrage.

CFR - Cost and Freight - Sales term denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge. Risk of loss and damage generally passes to the buyer when the goods pass ship's rail at the port of loading.

CFS - Container Freight Station - Place where consignments are grouped together and packed into a shipping container or where such consignments are unpacked.

Charter - The chartering or hiring of a ship. A ship which is hired out is said to be on charter and the time during which a ship is hired out is known as the period of the charter.

Charter by Demise - See bareboat chatter.

Charter in (to) - To hire a ship from a shipowner. This expression is sometimes used more specifically to denote that the ship is being chartered for a specific voyage or purpose, supplementing a shipping company s fleet whose ships are fully committed or more profitably employed elsewhere.

Charter out (to) - To hire a ship out to a charterer. This expression is sometimes used to denote, more specifically, the hiring out of a ship which is temporarily surplus to the requirements of a shipowner or shipping company.

Charterable - Said of a quantity of goods that is sufficient to fill a ship taken on charter terms.

Charterer - Person or company who hires a ship from a shipowner for a period of time (see Time charterer) or who reserves the entire cargo space of a ship for the carriage of goods from a port or ports of loading to a port or ports of discharge (see Voyage charterer).

Charterer's Market - Weak market, with comparatively low freight rates.

Chopt - in Charterers' Option - Term in a Charter-Party which stipulates that the charterers have a choice in specific circumstances. For example, the contract may allow for discharge at port 'A' or port 'B' in charterers' option, with the provision that one port is to be declared to the shipowner by a certain point in the voyage.

Charterer's Agent - Ship's agent nominated by the voyage charterer in accordance with Charter-Party. Although nominated by the charterer, the agent is paid by, and is responsible to, the shipowner. Can also be applicable to agents appointed at a load or discharge port by request of the actual cargo interests.

Charterer's Bill of Ladinq - Bill of Lading issued by a charterer and signed by him or his agent. Under certain circumstances, the charterer who signs his own bills of lading may be deemed to be the carrier, thus taking on all responsibilities of a carrier.

Chartering Agent - Shipbroker that acts on behalf of a charterer in the negotiations leading to the chartering of a ship. He is the counterpart to the owner's broker, the shipowner who acts on behalf of the shipowner.

Charter Party Bill of Lading - Bill of Lading issued for a shipment of cargo on a chartered ship when it is intended that the receiver be bound by the terms and conditions of the Charter-Party. A clause to this effect incorporating the date and place of signature of the Charter-Party appears on the Bill of Lading.

Charter Party Broker - A broker that will contract at the actual market level, but he will always try to phrase every single Charter-Party clause so that it will be as advantageous as possible to his principal. It must be stressed that a Charter-Party that has not been carefully drafted may cause one of the parties considerable loses.

CIF - Cost Insurance and Freight - Sales tern denoting that the seller is responsible for arranging and paying for the carriage of the goods to the agreed port of discharge and for the insurance of the goods covering the period of carriage involved in the contract of sale. The risk of loss or damage generally passes to the buyer when the goods pass ship's rail at the port of loading.

CIP - Freight or Carriage and Insurance Paid to - This term is the same as CPT but with the addition that the seller has to procure transport insurance against the risk of loss or damage to the goods during carriage. The seller contracts with the insurer and pays the insurance premium.

Clause Paramount - Clause in a Bill of Lading or Charter-Party which stipulates that the contract of carriage is governed by the Hague Rules or Hague-Visby Rules or the enactment of these rules of the country having jurisdiction over the contract.

Claused Bill of Lading - Bill of Lading containing one, or more than one, superimposed clause which may either specify a defect to the cargo or its packing or may be any comment of the master regarding the carriage of the goods, for example that the weighs or contents of a consignment are unknown to him, or that the goods shipped on deck are at shipper's risk.

Clean Bill of Lading - Bill of Lading which contains no superimposed clause specifying any defect to the cargo or its packing; it indicates that the cargo has been received by the ship in apparent good order and condition. Clean bills of lading are often required by banks who use them as collateral security against money advanced for the purchase of the goods described therein.

Clean Receipt - Receipt given by anyone receiving cargo into his care or possession bearing no clausing or notation indicating loss or damage, thus indicating that the goods were received in apparent good order and condition.

Clear Days - Used with a number to denote the period of time excluding the first and the last days, for example ten clear days.

Closed Conference - Liner conference in which the member lines vote on the admission of a new line. The purpose of this is to restrict the number of ships in a particular trade.

Closing date - Final date for delivering cargo to a liner ship. Usually considered to be the first day of the laycan or shipping period. Can also be a cargo cutoff date.

COA - Contract of Affreightment - is usually a contract for the carriage of a specified type and quantity of cargo, covering two or several shipments and running over a long period. In the COA it is the cargo and not the vessel that has a central position.

Coasthire - Time Charter-Party, the full name of which is the Chamber of Shipping Coasting and Short Sea daily Hire Charter Party.

Coasting Broker - Shipbroker who specializes in the negotiation of charters for coastwise or short sea voyages.

Combined Transport Bill of Ladinq or Combined Transport Document - Document evidencing a contract between shipper and a shipping line for carriage of goods on a voyage involving at least two legs. Normally, the issuer of this document is responsible for the goods from the time they are received into his care until the time they are delivered at destination.

Common Carrier - Person or company advertising a service involving the carriage of goods to and from ports on a particular route. A common carrier is required by law to accept all cargo offered, except dangerous ones, and to make a reasonable charge for their carriage.

Common Short Form Bill of Ladinq - Type of Bill of Lading which may be used by any shipping line since neither the name of the line nor its conditions of carriage are printed on it: the name is typed on and a printed clause states the full terms and conditions are available on request.

Competitive Broker - A broker engaged in efforts to bring together an owner's confidential broker with the broker of a suitable charterer is engaged in competitive chartering and is called a competitive broker.

Conbill - Bill of Lading approved by the BIMCO for use when no Charter-Party is signed.

Conference - Two or more shipping lines operating a service in common between designated geographical areas. The lines agree a set of freight rates and any special rates for shippers and each line charges the same as the others. The ships used are of types suitable for the trade. Unlike tramp shipping where freight rates are function of daily supply and demand, conference rates are relatively stable: base rates are altered by means of a general rate increase which in many cases is once a year. Lines in a conference are governed by the rule of membership which may include rights to load or discharge at certain ports, and pooling of cargo. Also referred to as a freight conference or a shipping conference or a liner conference.

Constant - Refers to those items of a more or less permanent nature, such as crew and effects, stores, spare parts in excess of rule requirement (for example, a spare propeller and/or a spare tail shaft, neither of which are required by the rules), which have not been included in the lightweight and consequently must be deduced from the deadweight when determining the deadweight available for cargo. The word "constant" itself is a misnomer, since the constant is not forever constant but may vary from voyage to voyage depending on the amount of stores and spares on board.

CT - Conference Terms - Qualification to a freight rate which signifies that it is subject to the standard terms and conditions of the particular liner conference. These are normally set out in the conference's tariff.

Congenbill - Bill of Lading intended to be used with Gencon charter parties One of the clauses in this Bill of Lading states that it incorporates all the terms of the Charter-Party.

Congestion Surcharge - Extra charge applied by shipping lines, or set by liner conferences on behalf of their members, to reflect the cost of delay to their ships at a particular port caused by congestion.

Conlinebill - Liner Bill of Lading published by the BIMCO.

Conline Booking Note - Liner Booking Note published by BIMCO.

Consecutive Voyages - Successive voyages of a ship on charter to one party. The Charter-Party may stipulate the number of voyages or the total quantity of cargo to be carried or the total period during which the shipowner performs the maximum number of voyages. Consecutive is often abbreviated to consec.

Consignee - Person to whom goods are to be delivered by the carrier at the place of destination.

Consignor - Person who places goods in the care of a carrier for delivery to a person known as a consignee.

Consolidation - The grouping together of several compatible consignments into a full container load. Also referred to as groupage.

Contractor - Person or company having a loyalty contract with a liner conference and entitled subject to having complied with the terms of the contract, to a contractor's rebate.

COP - Custom of the Port - Established practice at a port, which becomes part of a contract of carriage unless otherwise provided for in the contract. Frequent examples are daily rate of loading and discharging, and the point where a carrier's responsibility ends in a liner terms contact.

Copy Bill of Ladinq - Reproduction of a Bill of Lading intended to be used for administrative purposes only and not for taking delivery of the goods or for transferring title to them.

Count (as laytime) (to) - To be included in the calculation of laytime in a voyage charter. Whether a period, such as during a week-end or a strike, counts as laytime is subject to the agreement of shipowner and charterer save that, once all the time allowed has been used, the remaining period until completion of loading or discharging, as the case may be, counts without exception. A typical voyage Charter-Party clause might stipulate that 'time between 1700 hours Friday and 0800 hours Monday not to count, even if used.

Counter-offer or Counter - Response to an offer which in some way varies the terms or conditions of that offer, by virtue of a party making a counter-offer, the offer itself is no longer binding. Offer and counteroffer form the basis of the negotiations involved in chartering.

CP - Charter-Party - Document containing all the terms and conditions of the contract between a shipowner and a charterer, and signed by both parties or their agents, for the hire of a ship or the space in a ship. Most Charter-Parties are standard forms with printed clauses and spaces or boxes in which details relating to the individual charter, such as freight, laytime, demurrage, the ship's construction, speed and consumption, are inserted. The printed documents may be varied and / or added to by agreement of the two parties. Sometimes spelled Charter Party.

CPT - Freight or Carriage Paid to - Means that the seller pays the freight for the carriage of the goods to the named destination. However, the risk of loss and damage to the goods, as well as of any cost increases, is transferred from the seller to the buyer when the goods have been delivered into the custody of the first carrier and not at the ship's rail. It can be used for all modes of transport including multimodal operations and container or roll-on/roll-off traffic by trailers and ferries. When the seller has to furnish a Bill of Lading, waybill or carrier's receipt, he dully fulfills his obligation by presenting such a document issued by the person with whom he has contracted for carriage to the named destination.

CQD - Customary Quick Despatch - Means that the charterer must load and / or discharge as fast as is reasonably possible in the circumstances prevailing at the time of loading or discharging. There is no provision for demurrage or despatch. From the standpoint of an owner, it gives very little assurance, if any, of a quick load and/or discharge.

Cst. - Centistokes - Measure of the viscosity of oils. The greater the number of centistokes, the higher the viscosity of a grade of oil.