H

Hague Rules - See "Carrier’s Liability Acts (Ocean)."

Hague-Visby RULES - See "Carrier's Liability Acts (Ocean)."

Halyard

Rope, line, and tackle usually attached to the mast and used for hoisting and lowering items such as equipment or sails.

Hamburg Rules - See "Carrier's Liability Acts (Ocean)."

Harbor Master

A person who supervises berthing of yachts and other vessels in a harbor or marina.

Harter Act - See "Carrier's Liability Acts (Ocean)."

Hatch

An opening, generally rectangular, in a vessel's deck affording access to the compartment below.

Haul Days

The day a repair yard hauls a vessel out of the water (for maintenance work, repair work, or storage) and the day it hauls the vessel back into the water are both haul days. Each time the vessel is hauled, the repair yard charges the vessel owner for two haul days and as many full lay days in between as it takes to do the work. See "Haul Out" and "Lay Days."

Haul Out

To draw or lift a vessel from the water to the shore for maintenance work, repair work or storage.

HAZ MAT (Hazardous Materials)

Substances classified by the U.S. Environmental Protection Agency (EPA). Transportation of hazardous materials is strictly regulated by the U.S. Department of Transportation.

Head

A vessel’s toilet. The name is believed to have come from the fact that the toilet facilities on sailing ships were located in the bow (head) of the vessel.

Heave

1. To throw a dock line, anchor line, or life ring.

2. To pull, raise, or lift, e.g. heave in the anchor line, or heave on the capstan or a block and tackle.

3. Heave to - to bring the ship to a stop in heavy weather, e.g. reduce sails or power.

4. Also hove, e.g. the ships hove into view above the horizon or alongside.

5. Heave Ho. A command to push or pull together, e.g. on the anchor line (the slang term came from sea chanties sung while pulling up the anchor).

6. See "Vessel Movement."

Held Covered

An extension of coverage by an insurance company in certain circumstances where coverage is not already provided by the policy. To take advantage of the policy’s "held covered" clause, it is usually required that the insured give prompt notice to the insurance company of the circumstances that have taken place, and pay any reasonable additional premium required.

Helmsman

The person responsible for steering a vessel. See also "Coxswain."

High Cube Container

A container over 8 feet 6 inches in height.

Himalaya Clause

A clause in bills of lading extending to stevedores, terminal operators, etc. certain defenses available to the shipowner in the bill of lading, e.g. stevedores using the carrier’s liability limitation of $500 per package.

Hold

An enclosed space on the vessel in which cargo is carried.

Holddown Clamp

A device used to hold a container to the truck chassis during transit.

Hook Damage

Damage to breakbulk cargo caused by stevedores' hooks.

House-to-House - See "Door-To-Door."

House-To-Pier

Cargo loaded into a container by the shipper and unloaded from the container at the port of discharge.

Hull

The structural framework of a vessel, together with all decks, deckhouses, and hull plating, but exclusive of engines, masts, spars, rigging, and equipment.

Humping

The process of making up trains in a railroad yard by uncoupling the cars on a track that is slightly elevated to the train being made up on the classification tracks in the yard. The cars roll down the incline and are switched to the correct tracks, where they connect to the various trains being made up.

Hurricane

A tropical cyclone with winds of 74 mph or greater in the North Atlantic, Caribbean / West Indies, and North Pacific Oceans. The winds rotate in a counter-clockwise direction in the Northern Hemisphere and clock-wise in the Southern Hemisphere moving from east to west following the general direction of the wind and ocean current in the area. They originate over water in the tropics between 5 and 30 degrees of latitude (2/3 of them in the Northern Hemisphere). When they leave the warm waters of the tropics, they lose their power and the wind diminishes. See "Storm" and "Weather Warnings" Appendix D.

Husband / Husbanding Agent

An agent in a foreign port who takes care of the ship’s needs.

G

Galley

The place where food is prepared on a vessel; i.e. the vessel's kitchen.

Gantry Crane

A frame built across the width of a vessel from which blocks and rigging are suspended. A gantry crane is a crane on which the load is suspended from a traveling trolley.

Gas Free Certificate

Written confirmation that a tank or other confined space has been inspected and confirmed purged of all explosive and other harmful gasses.

GATT (General Agreement on Tariffs and Trade)

A multinational treaty to help reduce trade barriers between the signatory countries and to promote trade through tariff concessions. The World Trade Organization (WTO) superceded GATT in 1994.

GBL (Government Bill of Lading)

General Average (GA)

An ancient principle of equity, recognized by maritime nations, pre-dating the concept of insurance and still valid today, in which all parties involved in a sea adventure (vessel, cargo, and freight) proportionately share losses resulting from a voluntary and successful effort to save the entire venture from an imminent peril. There are two types of General Average acts:

1. Voluntary Sacrifice of a part of the vessel or a part of the cargo, e.g. jettison of property to stabilize the vessel during heavy weather.

2. Extraordinary Expense necessarily incurred for the joint benefit of vessel and cargo, e.g. towing charges incurred to assist a disabled vessel to a port of refuge.

General Average Adjuster - See "Average Adjuster."

General Average Agreement

A guarantee by the owner of the cargo (usually the consignee) to pay that proportion of the general average contribution, salvage, or special charges owed by the shipment, and to give information about its value so an Average Adjustment can be prepared. The vessel owner will not release cargo for delivery to the consignee until the cargo owner signs this average agreement or bond, which is prepared by the general average adjuster.

General Average Bond - See "General Average Agreement."

General Average Deposit

A cash deposit (usually based on the estimated percentage of General Average) which the General Average Adjuster demands from the owner of the cargo to secure the payment of its proportion of the General Average. This cash deposit is usually demanded as additional security to the General Average Bond. The deposit may be replaced by a General Average Guarantee.

General Average Expenditures - See "General Average."

General Average Guarantee

An insurance company's written guarantee to the General Average Adjuster guaranteeing to pay the legally due proportion of General Average finally assessed against the Assured’s insured cargo. This guarantee is usually accepted by the Adjuster in lieu of a cash deposit and is additional security to the bond signed by the owner of the goods.

General Average Sacrifice - See "General Average."

General Average Security

Documents presented by cargo owners to a General Average Adjuster to replace the vessel owner's maritime lien on cargo for its share of General Average and to obtain release of cargo from the steamship company. GA Security consists of a GA Bond and either a cash deposit or an insurance company's Guarantee. See "Non-separation of Interest Agreement."

General Cargo

A vessel's cargo consisting of a variety of commodities shipped by one or by many merchants.

General Maritime Law

A compilation of rules, concepts, and legal practices that evolved into common law (case law) relating to the carriage of goods and passengers by water. It is administered by special courts known as Admiralty Courts. General maritime law is the seagoing equivalent of common law and is supplemented by statutory law such as the Jones Act.

Generator Set (Gen Set)

A portable electrical generator set which can be attached to a refrigerated container to power the refrigeration unit during transit or to provide emergency or temporary electrical power.

Give-Way Vessel

When meeting another vessel, the vessel that does not have the right of way under the navigational rules and must keep out of the way of the other vessel; formerly called the "burdened vessel." See "ColRegs" and "Stand-on Vessel."

GMT (Greenwich Mean Time) - See "Time Zones" Appendix C.

Go-Down

In the Far East, a warehouse where goods are delivered and stored.

Good Faith - See "Utmost Good Faith."

Goods

Cargo shipped by water, air, or land.

Graving Dock - See "Vessel Types" Appendix F

Gravity, Center of - See "Vessel Stability."

Gross Tonnage - See "Tonnage."

Gross Weight

1. The total weight of the cargo, its packing material, and the chassis or container or railcar.

2. For vessel weight, see "Tonnage."

Grounding

A vessel striking or touching the bottom; running aground. See "Stranding."

Ground Tackle

A general term for all anchors, cables, ropes, etc. used to moor or anchor a vessel.

GRT (Gross Registered Ton ) - See "Tonnage."

Gunwale (rhymes with "funnel")

The short extension of a vessel's side above the main deck. See also "Bulwark."

F

FAK - See "Freight All Kinds."

FAS (Free Alongside Ship) - See "Cargo Terms of Sale" Appendix G.

Fathom - See "Weights and Measures" Appendix E.

FCL (Full Container Load) - See " Container Load."

FC&S (Free of Capture & Seizure)

Clause excluding war risks from the Marine Insurance Policy. War risks can be covered by issuing a separate War Policy for an additional premium.

FDA (Food and Drug Administration)

A U.S. government agency.

Federal Maritime Commission (FMC)

The U.S. Governmental regulatory body responsible for administering maritime affairs including the tariff system, freight forwarder licensing, NVOCC licensing, enforcing the shipping acts, approving carrier conference agreements, and monitoring confidential service contracts between carriers and shippers under Ocean Shipping Reform Act.

Feeder Service

A vessel which transfers cargo or containers between outlying areas and a central loading area or a larger vessel as part of a long ocean voyage.

Fender

A device fastened to or hung over the side of a vessel to prevent the vessel from rubbing or chafing against other vessels, piers, or wharves. See "Camel."

FEU (Forty-foot Equivalent Unit) - See "TEU."

FFD (Fit For Duty) - See "Seaman’s Rights and Remedies."

FIA (Full Interest Admitted)

The insurance company acknowledges the Assured's financial interest in the property and agrees to its value without proof or documentation of ownership. See "PPI ."

Fifth Wheel

The semi-circular coupling device mounted horizontally on the back of a tractor which engages and locks with a trailer allowing the trailer to pivot and turn.

FIO - See "Free In and Out."

Fire

One of the perils specified in the Perils Clause in an insurance policy. It includes not only direct damage by flames, but also indirect damage incurred from smoke, or damage from water or chemicals used to extinguish the fire. The definition does not extend to cover spontaneous combustion.

Fire Statute - See "Carrier's Liability Acts (Ocean)."

Fit For Duty (F F D) - See "Seaman’s Rights and Remedies."

Flammable / Inflammable

Easily ignitable, capable of burning. "Flammable" and "Inflammable" have the same meaning. Something that cannot be burned is "nonflammable."

Flat Rack

An open container without sides or top used for carrying odd sized cargo to facilitate loading and stowing in a containership.

Floating Dry Dock - See "Vessel Types" Appendix F.

Floor Board

Removable grating which provides a platform or "floor" over the bilge of a vessel.

Flotsam

Floating wreckage of a vessel or its cargo. See "Jetsam" and "Lagan."

FMC - See "Federal Maritime Commission."

FOB (Free on Board) - See "Cargo Terms of Sale" Appendix G.

FOB/FAS Endorsement

Supplemental insurance coverage purchased by the seller on an export shipment that is sold on FOB, FAS, C&F or similar terms of sale where the seller does not arrange the transit insurance. The buyer’s insurance may only cover the buyer’s interests after the title transfers and may not cover losses before title transfers. This supplemental coverage protects the seller’s interest in the cargo from the time goods leave the point of origin until title transfers to the buyer during transit, usually when cargo is loaded aboard the vessel.

Force Majeure

Superior Force. See "Force Majeure Clause" and "Act of God."

Force Majeure Clause

A clause in a contract exempting the parties from their obligations under the contract as a result of conditions beyond their control. See "Act of God."

Foreign Trade Zone - See "Free Trade Zone."

ForkLift

A vehicle with prongs or forks used to pick up and move cargo loaded on pallets or skids.

Fortuitous

Accidental; happening by chance.

Forward

In the direction of the bow of the vessel.

Forwarding Charges

The costs necessarily incurred to forward cargo to its intended destination in the event the carrying vessel meets with a casualty and is unable to complete the voyage.

Found

Room and board provided for work, in addition to wages. See "Seaman’s Rights and Remedies."

Founder

A vessel sinking as the result of incursion of water into the hull . (A similar word "flounder" meaning "to move clumsily and with difficulty" is probably a combination of "founder" and "blunder"). See "Sinking."

FPA (Free of Particular Average) - See ''Average Clauses."

FPIL– See "Full Premium If Lost."

Franchise

Either a percentage of insured value or a specified dollar amount in an insurance policy which must be reached before an insured loss is paid in full. It is similar to a deductible in that insured losses less than the franchise amount are not paid, but different from a deductible in that insured losses equal to, or more than, the franchise are paid in full. Also known as a "disappearing deductible." See "Average Clauses."

Free Alongside Ship (FAS) - See "Cargo Terms of Sale" Appendix G.

Freeboard

The vertical distance from the waterline to the top of the main deck, at the side of the vessel, measured amidships.

Free In and Out (FIO)

Cost of loading and unloading a vessel borne by the charterer; i.e. stevedoring expenses.

Free of Particular Average (FPA) - See "Average Clauses."

Free On Board (FOB) - See " Cargo Terms of Sale" Appendix G.

Free Out (F O)

Cost of only unloading a vessel borne by the charterer; i.e. stevedoring expenses (loading costs are borne by someone else).

Free Port - See "Free Trade Zone."

Free Surface Effect

The change in stability of a vessel caused by liquids moving about freely in a tank or hold. As a vessel rolls, liquids in tanks or breached compartments accentuate the roll by moving freely from side to side of the tank accumulating first on one side and then the other. This movement can reduce the stability of the ship. The effect can be reduced by having baffles in a tank to reduce the free movement or by either emptying the tank or filling it completely so there is no "free surface."

Free Time

The period of time cargo will be held for pick up at the port of discharge before storage charges are applied.

Free Trade Zone

A secure zone or area in a port or airport designated for duty-free entry of foreign goods or components. The goods may be stored, displayed or assembled into larger parts. Duty is paid when the finished product enters the U.S. market. If the goods are re-exported to another country, no duty is paid in the U.S. Also called a "Foreign Port" or "Foreign Trade Zone."

Free Water (FW)

The layer of water that forms when water is present with immiscible liquids, such as oil. The lighter liquid forms a layer above the heavier liquid; e.g. oil usually floats above the free water.

Freight

1. The charge made by a carrier for transporting goods.

Some Different Types of Freight Are:

• Collect Freight - Freight payable at destination provided the vessel delivers the goods in specie.
• Guaranteed Freight - Freight payable whether the goods are delivered or not, provided the failure to deliver the goods resulted from causes beyond the carrier's control.
• Advance Freight - Partial payment of the bill of lading freight in advance.
• Prepaid Freight - Payment of the full bill of lading freight in advance; in other respects is the same as guaranteed freight.

2. The cargo being transported.

Freight All Kinds (FAK)

A notation on a bill of lading indicating that different kinds of cargo are being shipped.

Freight Forwarder

A party who acts as an agent of the shipper in making transportation arrangements, preparing necessary documents, and generally expediting the entire process of exporting cargo.

Frustration Clause

A clause in the War Policy stating that there has not been a loss simply because of termination (or frustration) of the voyage due to an outbreak of hostilities. There must be actual physical damage to the cargo for there to be a loss.

Full Cargo

A cargo of one kind, usually in bulk form, taking up the entire cargo space of a vessel.

Full Container Load (FCL) - See "Container Load."

Full Premium If Lost (FPIL)

A clause used on hull policies making the entire policy premium fully earned if the insurance company pays a total loss for the insured vessel. There is no return premium due the Assured if the total loss occurs before the end of the policy period.

Furniture

The fittings or fixtures which, though not actually affixed to the vessel, are for use thereon and are reasonably necessary for its safety and navigation.

E

Early Neutral Evaluation -See "Alternative Dispute Resolution."

Edge Protector

An angle piece fitted over the edge of boxes, crates, bundles, and other packages to prevent the pressure from straps or bands from cutting into the package.

EIR -See "Equipment Interchange Receipt."

Ejusdem Generis (of the same kind, class or nature) - See "Omnibus Clause."

Embargo

A governmental order restricting the hauling or movement of a particular commodity or commodities to or from a particular country.

Endorsement

• A legal signature usually placed on the reverse of a check or draft; signifies transfer of financial rights from the holder to another party.
• A legal signature placed on a negotiable bill of lading to transfer ownership of the bill of lading (and hence the cargo referred to in it) to another party.
• A legal signature placed on a negotiable certificate of insurance to transfer rights to another party.
• An amendment to an insurance policy.

Entry Documents

Customs papers required to clear an import shipment for admission into the general commerce of a country.

Equipment

Articles necessary for the safety, maintenance or navigation of the vessel on its intended voyage, which are not part of the vessel’s hull or machinery and which are not the personal property of the crew; e.g. anchors, cables, mooring lines, lifeboats, lifesaving apparatus, signal lights, radio installation, navigational instruments, cooking utensils, furniture, provisions and stores.

Equipment Interchange Receipt (EIR)

A receipt issued when a container and chassis enter or leave a port's terminal area by truck; usually noting the date and time, whether the container is full or empty, the number of any seals affixed to the container, and the condition of the container.

Estuary

The mouth of a river where it widens and runs into the sea. The fresh water becomes brackish as it meets the ebb and flow of the salty tide.

ETA (Estimated Time of Arrival)

ETD (Estimated Time of Departure)

Ethylene

A gas produced by many fruits and vegetables that accelerates the ripening and aging processes. See "Controlled Atmosphere".

EX (Point of Origin)

The point where a shipment begins transit, e.g. "Ex Factory" or "Ex Mine" or "Ex Warehouse." See "Cargo Terms of Sale" Appendix G.

Exception

A notation on a shipping document (Bill of Lading or Delivery Receipt) qualifying the condition of the merchandise to indicate damage, suspected damage, or shortage.

Excess Insurance

Some risks (commonly liability and some types of property) are written on a layered basis, in which one or more layers of excess policies are placed on top of the primary policy; stacked up much like layers of a cake to provide higher limits of coverage. Losses are paid by the primary layer first, and then, one by one, by as many excess layers as are necessary to pay the entire loss or until all of the excess layers are exhausted.

Ex Gratia Payment

An insurance company’s payment of a claim that is not clearly covered by the policy, as a commercial expedient to maintain goodwill between Assured and the insurance company.

Exhibition Cover

Insurance coverage for merchandise in transit to and while on exhibit (usually at a trade show) and the return shipment (unless the merchandise is sold) to point of origin. A cargo policy normally only covers while merchandise is in transit until arrival at destination. Only the marine policy can extend coverage on shore, not the war policy.

Export

Shipment of goods to a foreign country.

Export License

A government document permitting the "Licensee" to engage in the export of designated goods to certain destinations.

D

Deadhead 

• A vessel sailing in ballast (i.e. without cargo) to its next port for loading cargo.
• A submerged (but floating) log which can be hazardous to the vessel’s hull and propellers.
• A tractor pulling an empty container on a chassis.

Deadweight Tonnage (DWT) - See "Tonnage."

Deck

• The horizontal platforms extending from one side of the vessel’s hull to the other, forming levels of a vessel corresponding to the floors or stories of a building; e.g. main deck, 2nd deck, weather deck, etc.
• The floor structure itself of any of these levels, upon which the cargo is placed.

Deck Cargo - See "On Deck Cargo."

Deckhouse

An enclosed structure, such as a cabin or other compartment built on the deck of a ship. See "Pilothouse."

Deck Load Conditions

Insuring conditions in a cargo policy for cargo carried "on deck"; i.e. the areas of a barge or other vessel exposed to the weather. "FPAAC including JWO" means Free of Particular Average, American Conditions, including the risks of jettison and washing overboard. See "Average Clauses," "Particular Average," and "Jettison."

Declaration

An insurance form filled out by the Assured for reporting / declaring individual shipments under an Open Cargo Policy. It is usually used for declaring import shipments where evidence of insurance is not required. A multi-entry declaration is called a bordereau. See "Certificate of Insurance" and "Special Cargo Policy."

Deductible / Deductible Average (DA)

Either a percentage of the insured value of the entire vessel or the entire cargo shipment, or a specified dollar amount which is subtracted from the total amount of claim. It is applied to partial loss claims, but not usually to total loss or General Average claims, depending on the policy wording.

Delay

Late arrival of cargo at destination caused by adverse weather, mechanical breakdown, or some other reason resulting in late arrival of the vessel. See "Loss of Market."

Delay Clause

A clause in most cargo insurance policies (even under All Risks coverage) excluding claims for loss or damage arising from delay, even if the delay is caused by an insured peril. See "Marine Extension Clauses."

Delivery Receipt

A form used to acknowledge acceptance of cargo, noting the apparent condition (whether sound or damaged). It often serves as the basis for preparation of the ocean bill of lading.

Demurrage

1. A penalty or storage charge for cargo or containers held beyond the allowed number of days "free time" at a warehouse or railhead before it is picked up by the consignee.
2. A penalty that a Charterer pays the vessel owner for keeping the vessel at the port of loading or discharge longer than agreed in the voyage Charter Party. See "Detention" and "Free Time."

Density

The ratio of the weight of a substance to its volume at a given temperature and pressure; e.g. the weight of cargo in pounds per cubic foot.

Depreciation

An allowance for a decrease in value of property through wear, deterioration, obsolescence, or damage; it may be expressed as a dollar amount or a percentage of the property’s sound value.

Derrick

A large crane mounted on a barge. See "Derrick Barge" under "Vessel Types" in Appendix F.

Destination

The place to which a cargo shipment is to be delivered.

Detention

• The prevention, by governmental authority, of vessel and/or cargo leaving port, particularly during time of hostilities.
• A penalty charge against shippers or consignees for delaying carrier's equipment beyond allowed free time. See "Demurrage."

Devanning

The unloading of a cargo container.

Deviation

In Admiralty law, any unreasonable variation in the conduct of a vessel in the carriage of goods whereby the risk of damage to the shipment could be increased; e.g. a vessel straying from the customary course of the voyage to call at an unscheduled port, overcarrying the goods beyond the port of discharge stated in the bill of lading, delay in carrying the goods, or carrying cargo on deck of a vessel not designed for carriage of containers on deck. Such a deviation causes the carrier and the ship to lose their COGSA defenses and limitations for loss or damage to the cargo. Any deviation to save life or property at sea is not unreasonable and does not make the carrier liable for any resulting loss or damage to cargo.

A Marine Cargo Policy generally includes a Deviation Clause to protect the cargo owner in case of deviation or change of voyage or, in case of an error in the description of the interest, vessel or voyage.

Difference In Conditions (D.I.C.)

A supplemental form of insurance giving the Assured broader coverage than is provided in a basic policy, e.g. a contract may only require basic fire coverage, whereas the buyer wishes coverage for "All Risks" to protect his or her financial interest. This extra coverage would insure the difference in conditions between the limited policy and the broader one.

Dinghy - See "Vessel Types" Appendix F.

Discharge

To unload cargo from a vessel.

Disclosure

The duty of the Assured and its broker to tell the insurance company every

material circumstance before acceptance of the risk. See "Utmost Good Faith."

Displacement - See "Tonnage."

Divert / Diversion

To change the scheduled voyage or destination of a vessel. See "Destination."

Divided Damages

A method of apportioning damages from a vessel collision, where the total damages of both vessels were divided equally between the two vessels without regard to the degree of fault of each vessel. This method of equal division of damages was firmly established in the United States until it was replaced by the doctrine of Proportionate Fault by the U.S. Supreme Court decision in United States v. Reliable Transfer Co., 1975. See "Proportionate Fault."

Dock

• For vessels, an area of water between two piers or alongside a pier, where a vessel is moored during loading and unloading of cargo or passengers. Sometimes refers to a floating structure to which vessels are tied up. See "Pier" or "Wharf." See also "Floating Dry Dock" and "Graving Dock" under "Vessel Types" Appendix F.
• For land transportation, a loading or unloading platform (usually at the height of the truck bed for ease of loading) at a warehouse or carrier terminal.

Dogs 

• A means of securing a door or hatch aboard a ship.
• Steel teeth on the front of small tugs used for repositioning floating logs.

Dolly

A set of wheels that supports the front of a trailer when the tractor unit is disconnected.

Dolphin

A group of pilings driven into the bottom of the harbor and tied together to form a strong mooring post. It is usually located at either end of a pier and is used to moor a vessel whose length extends beyond the pier.

Donkey Engine

A small engine on deck to power winches used to hoist sails, adjust rigging and tackle, weigh anchor, or operate deck pumps.

Door-to-Door

Transportation of a container and its contents from the warehouse of the consignor to the warehouse of the consignee by various means of transport. Also known as "House-to-House." See "Multimodal" and page 104 for an illustration.

D.O.T. (Department Of Transportation)

A U.S. government agency.

Draft

1. Depth of water required for a vessel to float clear of the bottom. The vertical distance from the waterline to the lowest part of a vessel.
2. A financial instrument to transfer money:

a. The Buyer's payment for goods through a bank in a cargo sales transaction. See "Commercial Set". b. Bank Draft - A payment order to a bank. See "Bank Draft." c. Sight Draft - A payment order payable upon presentation, i.e. "sighting."

Drayage

Charge made for local hauling by dray or truck. Same as Cartage.

Dredge spoils

Material picked up from the river or sea bottom by dredges and pumped or deposited ashore or in deep water.

Dry-Bulk Container

A container constructed to carry grain, powder, and other free-flowing solids in bulk.

Dry dock - See "Floating Dry Dock" and "Graving Dock" under "Vessel Types" Appendix F.

Dual Valuation Clause

A clause in hull policies used when insuring older vessels so one value is used for total loss purposes and a higher value for all other claim and repair purposes. The lower value is the one on which all questions of total loss depend and usually represents the approximate market value of the vessel. The higher value (fixed by negotiation at a sum above the market value) applies to all other claims: particular average, general average, sue and labor, and collision claims, etc.

Due Course Of Transit

Uninterrupted movement of goods from point of origin to destination without delay or any change caused by cargo owner.

Due Diligence

Proper care and attention on the part of a vessel owner to the maintenance and welfare of the vessel and crew.

Dumping

Exporting merchandise to a country at a price less than cost or fair market value, usually through a subsidy by the government of the exporting country.

Dunnage

Loose wood or other material used in a vessel's hold or in a container to secure and support cargo during the voyage to prevent damage and movement and shifting of the cargo.

Duty

A Government tax levied on imports. In the U.S., it is collected by U.S. Bureau of Customs upon entry of the goods into the country.

C

Cabotage 

• Coastal trade and navigation between ports within the same country.
• Air transportation within the same country.

Camel

A large float (often a small barge or cluster of logs) placed between a large ship and a pier or between two ships to prevent rubbing or chafing. See "Fender."

Capstan

A rotating cylinder used for hauling in rope or line or for lifting heavy loads. See "Winch."

Captain's Protest - See "Master’s Protest."

Cargo

Goods, merchandise, or commodities of every description which may be carried aboard a vessel or other conveyance, in consideration of the freight charged. It does not include provisions, stores, or fuel (bunkers) for use on board the vessel.

Cargo Manifest - See "Manifest."

Cargo N O S

Cargo "Not Otherwise Specified" in a tariff.

Cargo Tonnage - See "Tonnage."

Carnet

An international customs document, acting as a passport for merchandise that allows goods to temporarily enter certain foreign countries and return to the United States without paying duty or posting customs bonds in either country; e.g. goods for trade shows, display, or demonstration.

Carriage Of Goods By Sea Act (COGSA) - See "Carrier's Liability Acts (Ocean)."

Carrier

• A transporter of cargo or passengers; a steamship company, trucker, airline or railroad. Carriers may be either a "common carrier" (operating under a public tariff for established routes, stops, and terms of carriage for various commodities) or a "contract carrier" for individually negotiated contracts.
• An insurance company is sometimes referred to as a "carrier."

Carrier’s Liability Acts (Ocean)

Fire Statute -1851

U.S. statute that provides no vessel owner or bareboat charterer can be held liable for any loss or damage to cargo on board the vessel by reason of fire on board, unless the fire has been caused by the design or neglect of the shipowner or bareboat charterer.

Limitation Of Liability -1851

The U.S. Limitation Act, a companion to the Fire Statute, allows a shipowner or bareboat charterer of a vessel to limit its liability for any loss, damage or personal injury caused by the vessel to the value of the vessel as long as the loss or damage occurred without the privity or knowledge of the owner or bareboat charterer. Liability can be limited to the value of the vessel at the end of the voyage and the pending freight. In the case of loss of life or personal injury caused by a seagoing vessel, the minimum limitation value of the vessel is $60 per gross ton.

HARTER ACT - 1893

U.S. statute that voids clauses in ocean bills of lading which attempt to relieve the vessel owner of liability for loss or damage to cargo arising from negligence in loading, stowage, care and proper delivery or clauses that attempt to avoid or lessen the vessel owner’s obligations to exercise due diligence to provide a seaworthy vessel and crew for the carriage and delivery of cargo. It relieves a vessel owner of liability for errors in navigation or management of the vessel if the owner exercises due diligence to make the vessel in all respects seaworthy. The Harter Act still applies to carriage of goods not subject to COGSA, including the period before loading and after discharge. It applies to carriage between U.S. ports (e.g. U.S. mainland to / from Hawaii and/or Alaska) unless the bill of lading expressly makes COGSA applicable to such shipments.

Pomerene Act -1916

Also known as the U.S. Federal Bill of Lading Act of 1916, it establishes the requirements for the issuance of ocean bills of lading in the U.S.

Hague Rules - 1922

International rules based essentially on the U.S. Harter Act for the regulation of bills of lading in the carriage of goods by sea. The rules were recommended to the governments of all the maritime nations for adoption as the basis for their various carriage of goods by sea acts. The U.S. adopted the Hague Rules with some minor changes in 1936 as the "U.S. Carriage of Goods by Sea Act" (COGSA).

Carriage of Goods by Sea Act - 1936 (COGSA)

U.S. statute adopting the Hague Rules. It applies to bills of lading covering ocean carriage of goods between U.S. ports and foreign ports and sets forth the responsibilities, defenses, and immunities of carriers and vessel owners for loss of or damage to cargo. It provides for a minimum carrier / ship liability of $500 per package (or customary freight unit if applicable) and for a one year time limit from the date of delivery for filing suit against the carrier and ship.

Hague - Visby Rules - 1968

Amendment to the 1922 Hague Rules brought about by a development in transportation that could not have been foreseen in 1922 - containerization. The Visby amendment provides that when a container, pallet or similar article of transport is used to consolidate cargo, the number of packages or units enumerated in the Bill of Lading shall be deemed to be the number of packages or units shipped. It also increased the carrier’s package liability limit from 100 pounds sterling to 10,000 French Francs (or equivalent).

Hamburg Rules - 1978

Proposal by the United Nations conference on Trade and Development (in Hamburg) to amend the Hague Rules in their entirety. The proposal would make the carrier liable for all damage resulting to cargo regardless of cause and without limitation while the goods were in the care & custody of the carrier. The Hamburg Rules would come into effect among signatory countries when approved by 20 of those countries. Traditional shipowning countries such as England and the U.S. are opposed to the Rules.

Caulking

Material used to plug seams between planks of a wooden vessel to prevent water from entering.

Causa Proxima - See "Proximate Cause."

Ceiling

• In meteorology, the height at which the cloud base covers all or part of the sky.
• The inside lining or planking of a ship’s hull extending up the side of the ship to the first deck. This ceiling is therefore on the sides of the ship and what would normally be called a "ceiling" in a house is termed the "overhead" on a ship.

Cells (Container Ships)

The system of vertical steel tracks in container vessels running from the main deck to the bottom of the hold that permits containers to be stowed in a vertical line and held in position. Containers are then stacked one atop another. Also called "cell guides," much like an elevator shaft in a building.

Center of Buoyancy - See "Vessel Stability."

Center of Gravity - See "Vessel Stability."

CERCLA -See "Pollution Liability."

Certificate Of Inspection

1. A document certifying that merchandise (such as perishable cargo) was in good condition immediately prior to its shipment.
2. The document issued by the U.S. Coast Guard certifying an American flag vessel's compliance with applicable laws and regulations.

Certificate Of Insurance

1. In Marine Insurance, a document issued on behalf of an insurance company covering a specific shipment. It states the terms and conditions of the cargo insurance and is subject to the terms and conditions of the underlying open cargo policy. It is not a "stand-alone" policy. It is used when evidence of insurance is required, especially by a bank issuing a letter of credit. See "Special Cargo Policy" and "Commercial Set."
2. In general insurance, a document usually issued by an agent or broker as evidence of insurance coverage stating the type, effective dates and limits of coverage. It does not stand in place of the policy and no changes to the policy can be effected by it.

Certificate Of Origin

A certified document used in international commerce to show the country of origin of the goods.

C&F (Cost and Freight) - See "Cargo Terms of Sale" Appendix G.

CFS (Container Freight Station) - See "Container Handling Facilities."

CFS - CFS

A notation on bills of lading indicating that cargo was consolidated at one container freight station, transported to another container freight station, and then deconsolidated at that CFS.

Charterer

A person or company that rents, hires, or leases a vessel from its owner.

Charterer's legal Liability

Responsibility of the charterer to the vessel owner, and sometimes to the cargo owner or a third party for damages to vessel, cargo, or other persons or property.

Charter Party

A written contract between the owner of a vessel and the party desiring to employ the vessel (charterer); sets forth the terms of the arrangement such as duration of agreement, freight rate, and ports involved in the trip.

Major Types of Charter Parties:

• Time Charter - A contract to rent a fully-equipped vessel including crew for a certain period of time.
• Voyage Charter - A contract to rent a fully-equipped vessel including crew for a specific voyage between 2 or more designated ports.
• Space Charter - A contract for only a portion of the vessel, e.g. one hold, or space on deck. Space charters are used to have a vessel call at an out of the way or an un-scheduled port.
• Bareboat Charter - A contract to rent a vessel without equipment, crew, fuel, or stores.

Chassis

A trailer frame with wheels for carrying a cargo container on the highway.

Chock

1. A block or wedge placed around wheels or barrels to prevent them from rolling or moving.
2. A fitting on the deck of a vessel through which dock or anchor lines are led and held in place.

CIF (Cost, Insurance and Freight) - See "Cargo Terms of Sale" Appendix G.

Classification Societies

Organizations which survey and classify ships according to their condition for insurance and other purposes; e.g. Lloyd’s Register of Shipping (England), American Bureau of Shipping (ABS - United States), Bureau Veritas (Norway).

Clean Bill Of Lading - See "Bill of Lading."

Clearance Limits

The height beyond which vehicles and cargo cannot clear bridges, tunnels, etc.

Cleat

A fitting on a vessel’s deck or a pier for securing lines. Also, the act of securing a line to a cleat.

Clip-On

Detachable refrigeration equipment used with an insulated container that does not have its own built-in refrigeration unit.

Coastwise

Vessels operating along the coast; also known as "Brown Water." See "Cabotage."

COFR (Certificate Of Financial Responsibility)

COGSA (Carriage Of Goods by Sea Act) - See "Carrier’s Liability Acts (Ocean)."

CoInsurers

Two or more insurance companies sharing a single risk under a subscription policy. The total participation of all coinsurers adds up to 100% of the risk, and each coinsurer has a separate contract with the Assured. Each company is a direct insurer and not a "reinsurer." See "Subscription Policy" and "Reinsurance."

Collision

In Marine Insurance, a vessel striking another vessel or floating, not stationary, object.

Collision Clause

A clause in a hull insurance policy insuring the shipowner’s legal liability for collision damage to another vessel, its freight, or cargo; a.k.a. the "Running Down Clause." See "Both to Blame Collision Clause."

ColRegs (Collision Regulations)

International Regulations for Preventing Collision at Sea, 1972 (also known as the "International Rules of the Road" and "navigation rules") is a treaty between participating maritime nations that governs the conduct of ships approaching other vessels so as to avoid the risk of collision. It applies in all international waters and to local waters of countries that do not have their own local rules. The United States has local rules for Inland Waters, and for the Great Lakes and the Western Rivers, and all other waters within the coastal headlands -- such as San Francisco Bay and Puget Sound.

Commercial Invoice - See "Invoice" and "Commercial Set."

Commercial Set (of Documents) - See individual words:

Set of four "negotiable" documents that represents and takes the place of the goods themselves in the financing of the cargo sales transaction, comprised of:

1. Commercial Sales Invoice.
2. Bill of Lading.
3. Certificate of Insurance.
4. Bank Draft.

Commodity

Any physical thing having utility and trade value.

Common Carrier

A company (vessel owner, railroad, airline or trucker) providing transportation services to the general public for the carriage of goods over a fixed route on a regular schedule with prices and terms of carriage published in a tariff. See "Contract Carrier."

Common Charges

When adjusting hull claims, an expense that would have to be incurred twice if vessel were hauled separately for regular vessel maintenance and for damage repair, but is incurred only once if maintenance and repairs are done at the same time; e.g. the haul out charge and drawing the vessel's tailshaft. These common charges are shared equally by vessel owner and the insurance company in adjusting the hull claim.

Comparative Fault / Negligence

A legal principle where damages are measured and apportioned in terms of percentage of fault to the responsible parties. The principle is most often seen in collision cases. See "Proportionate Fault."

Compromised Total Loss - See "Total Loss."

Concealed Damage

Damage to the contents of a package which is externally in apparent good condition.

Condemnation

In a War Risk insurance policy, property which has been captured by the enemy is not considered an absolute total loss until it has been condemned by a competent court of the enemy or one of its allies. Prior to condemnation there is always the remote chance that the property will be released. Prior to condemnation such seized property is a Constructive Total Loss; after condemnation, the property is an Absolute Total Loss.

Conference

An association of vessel owners operating in the same trade route who operate under collective conditions and agree on tariff rates and terms.

Connecting Carrier

A transportation company that carries cargo or passengers to a destination to which the first carrier does not go. The liability for delivery still rests with the first carrier who issues a "through Bill of Lading" and the connecting carrier operates as a sub-contractor to the primary carrier.

Connecting Conveyance

The inland or ocean transport vehicle that carries cargo before and/or after the main ocean or air transit.

Consignee

The party (usually the buyer) named in a bill of lading or air waybill who is entitled to receive cargo that is shipped by the consignor and delivered by the transporter.

Consignment

1. A shipment of goods from a shipper to a consignee.
2. Goods of others held for sale without taking title.

Consignor

The party who ships goods, the shipper; usually the seller.

Consolidation

Combining shipments of two or more shippers or suppliers for one or more consignees into one container.

Consolidation clause / Endorsement

A clause or endorsement in an open cargo policy providing coverage at an agreed premium on goods while in transit to, and while at, a common consolidation point for the purpose of preparing or consolidating the goods for export.

Constructive Total Loss - See "Total Loss."

Consular Documents

A formal statement certified by a consular official describing goods, and the value, quantity, nature, and origin of the cargo shipped.

Consumption Entry

The process of declaring the importation of foreign-made goods into the United States for use in the United States.

Container

A rectangular metal box used to transport cargo between two or more modes of transit; i.e. truck, train, vessel or airplane. The same loaded container is transferred, eliminating the intermittent handling of cargo; also called "Multimodal." Intermodal containers may be 20 feet, 40 feet, 45 feet, 48 feet, or 53 feet in length; 8’0" or 8’6" in width, and 8'6" or 9'6" in height. They may be ventilated, insulated, refrigerated, flat rack, vehicle rack, open top, bulk liquid or other configurations. Specialized containers for air shipments are called "Igloos" due to their shape. See "TEU" and "FEU." See "Cargo Packing" Appendix A.

Container Crane

A special purpose shoreside crane positioned alongside the vessel with enough reach to load / unload containers to/from the container cells on the ship.

Container Handling Facilities:

• Container Depot

A designated area where empty or off-lease containers are stored or repaired.

• Container Freight Station (CFS)

A shipping dock where container cargo is consolidated by destination. Incoming containers with multiple cargo destinations are unloaded (stripped). Cargo is sorted by destination and cargo with the same destination is either reloaded (stuffed) into one container for continued transit or sent directly to the destination without being containerized. Generally a CFS handles less than full container load (LCL) shipments.

• Container Terminal

A materials handling and storage facility for the transfer of containers between trucks, rail cars, and vessels.

• Container Yard (CY)

An open area (usually fenced with controlled access) at the carrier’s terminal where fully loaded containers are received and held awaiting further transit.

Containerization

Shipping system based on large cargo-carrying containers that can be easily interchanged between trucks, trains, and vessels without re-handling the contents. See "Container."

Container Load

A load sufficient in size to fill an entire container either by cubic measurement or by weight. Also known as "Full Container Load" (FCL).

Container Manifest

Document showing contents of a container.

Container Seal

A device installed through the door locking handles of a loaded container that prevents the door from being opened without breaking the seal.

• Indicator Seal – a flimsy plastic or metal strip with preprinted numbers that are recorded on the shipping documents and compared with the seal numbers on the doors when the doors are opened at destination. Missing seals or non-matching numbers provide evidence of possible tampering during the transit.
• Barrier Seal – a heavy bolt or lock that can only be removed with a special bolt or cable cutter. They will not keep out a determined thief, but they do make it more difficult to break into a container.
• Electronic Seal– Since the 9-11-01 terrorist attacks, more shippers and carriers are ordering the high-tech "electronic seals" that can store information and pinpoint exactly when the seal is broken.

Container Terminal - See "Container Handling Facilities."

Container Yard (CY) - See "Container Handling Facilities."

Contingency Insurance

Backup insurance that protects a party’s interest if certain events occur, e.g. if the Assured buys or sells cargo on terms under which the insurance is arranged by the other party, and that insurance fails to respond to a covered loss, the Contingency Insurance protects the Assured’s interest in the shipment.

Contraband

During time of war, materials carried aboard a vessel that could aid a belligerent in the process of the war, such as arms, weapons, or munitions.

Contract

A legally binding agreement (oral or written) between two or more persons or organizations creating an obligation to do or not to do a particular thing. The essentials are competent parties, legal subject matter, consideration (value), mutual understanding, and mutual obligations, e.g. an insurance policy, bill of lading, and charter party. See "Third Party."

Contract Carrier

A company (steamship, airline, railroad, or trucker) providing transportation services under individual contracts or agreements with specific parties (not the general public) to transport passengers or property to specified locations at an agreed time and charge. Not a "common carrier" (although some companies may serve in the capacity as both a common and a contract carrier). See "Common Carrier."

Contract Of Affreightment

The document evidencing the terms of carriage between a shipper and a carrier. It is usually expressed in the Bill of Lading and is subject to the Carriage of Goods by Sea Act (COGSA) if a U.S. port and a foreign port are involved, or the Harter Act if two U.S. ports are involved. See "Bill of Lading."

Contribution

The amounts to be paid by cargo owners and vessel owner for their share of a General Average loss or Salvage Award .

Contributory Negligence

A legal principle where the claimant is found partially at fault for causing its own damages or injury. The principle has been replaced by the doctrine of comparative negligence in many jurisdictions.

Contributory Values

The actual value of each cargo shipment and of the vessel at the time of arrival at the destination or termination of the voyage (even in a damaged condition) that is used to calculate each cargo owner’s and the vessel owner’s share of the General Average loss or Salvage Award. See "General Average."

Controlled Atmosphere

A system that controls the mixture of gases within a container to retard decay of perishables during a voyage.

Corner Post

Structural frame member at each corner of a container supporting the top, sides, and floor. It is the strength member by which the container is lifted by the container crane for loading / unloading aboard the vessel.

Countervailing Duty

An additional duty imposed to offset export grants, bounties or subsidies paid to foreign suppliers in certain countries by the government of that country for the purpose of promoting export.

Country Damage

Damage to baled or bagged goods (e.g. cotton, coffee and similar commodities) caused by excessive moisture from damp ground or exposure to weather, or by grit, dust, or sand forced into the cargo by windstorm or inclement weather, prior to commencement of transit.

Coxswain (pronounced "kok' sen")

A crew member who is in charge of a small boat and acts as helmsman.

Cradle

A wooden or metal framework to support a vessel upright while out of the water being built, repaired, lifted, or transported. It may have wheels for moving the vessel.

Crew

Seamen on board who operate and navigate a vessel; may include or exclude the master and officers. See "Seaman."

Cristal - See "Pollution Liability."

CRO (Cancelling Returns Only)

A phrase used in hull policies to indicate that the rate does not allow lay-up returns.

Cross Liabilities

1. In the event of a collision where both vessels are at fault, liability is apportioned between the two parties according to their degree of fault. See "Collision Clause."

2. A clause often used in contracts and in the Additional Assured Endorsement to an insurance policy stating that, even though both parties are named as an Assured for joint coverage under a policy of insurance, each will retain the rights against the other as though separate policies had been issued to each Assured. Also called a "Severability of Interest" clause, it is usually required to be shown on the Certificate of Insurance and/or Additional Assured Endorsement when the other party is to be named in the policy.

Crow's Nest

The place or position on a mast where a crew member can stand and watch for fish or other vessels.

CTL (Constructive Total Loss) - See "Total Loss."

Cure - See "Seaman’s Rights and Remedies."

Current

A flow of water or air in a definite direction. See "Tides."

Customs Bonded Warehouse - See "Bonded Warehouse."

Customs Broker (Customshouse Broker)

A person or firm licensed by the U.S. Treasury Department, who is hired by the cargo importer to expedite clearance of their cargo through U.S. Customs.

Cyclone

A tropical storm with winds of 74 mph or greater in the South Western Pacific Ocean (Philippines), South China Sea, and the Indian Ocean. See "Storm" and "Weather Warnings" Appendix D.

CY - CY

A shipment from one Container Yard to another Container Yard.

B

Ballast

Heavy material (usually water or rocks) placed in a vessel's hold to maintain proper stability, trim, or draft. A vessel "in ballast" is carrying no commercial cargo and therefore is not earning any freight or revenue for the voyage.

Bank

A ridge or shallow place in the water, e.g. Grand Banks off the coast of Newfoundland.

Bank Draft (Bill Of Exchange)

An order by a purchaser directing the bank to make a payment from the purchaser’s account, usually through an intermediary bank. Typical bank drafts are negotiable instruments and are similar in many ways to checks drawn on checking accounts in a bank. A Sight Draft is payable upon demand, i.e. "upon sighting." See "Commercial Set."

Bar

A ridge of sand or gravel silted up across the mouth of a river, estuary, or harbor forming a shoal that may hinder navigation.

Bareboat Charter

A type of charter of a vessel. See "Charter Party."

Barratry

Fraudulent, criminal, or wrongful act willfully committed by vessel's captain or crew which causes loss or damage to the vessel or cargo.

Beam

The width of a vessel at its broadest point.

Beaufort Scale

A scale of common observations to describe wind and sea conditions ranging from "0" for sea calm, to force "12" for hurricane force winds (devised by British Admiral Sir Francis Beaufort in 1806). See "Weather Warnings" Appendix D.

Below (Deck)

Under the main or weather deck of the vessel.

Benefit of Insurance Clause

A clause in the contract of carriage by which the bailee of goods claims the benefit of any insurance policy effected by the cargo owner on the goods in the care of the bailee. If the contract of carriage is subject to the U.S. Carriage of Goods by Sea Act, the clause is void.

Berth

• Mooring place for a vessel. A location for a vessel at a pier or dock.
• The place where a crew member or passenger sleeps on a vessel.

Bilge

The lowest part inside a vessel's hull where water, oil, and heavier than air gasses settle and collect.

Bill of Exchange - See "Bank Draft" and "Commercial Set."

Bill of Lading (B/L, Blading, and Lading)

A document issued by the carrier (or its agent) establishing the terms of carriage and acknowledging receipt of cargo. The B/L describes the kind and quantity of cargo being shipped; the name of the shipper, consignee, ports of loading and discharge, carrying vessel, and other shipping information.

The Bill of Lading serves as:

1. The carrier’s receipt given to the shipper in exchange for cargo.
2. The document of title in the hands of a lawful possessor; this is not true of a non-negotiable B/L.
3. The contract of carriage between the shipper and the carrier.
4. Evidence of the apparent condition of the cargo when received by the carrier. If the cargo shows damage, the Master will note exceptions on the B/L, e.g. "all coils rusted" or "13 bags broken and leaking." See "Commercial Set."

Some examples of bills of lading are:

• Clean B/L: a B/L without notation of damage exceptions to the cargo or the packing. A clean B/L is prima facie evidence of the apparent good order and condition of the cargo when received by and accepted for carriage by the carrier.
• House B/L: a B/L issued by a freight forwarder or consolidator (acting as an NVOCC) to the shipper, when the actual transporter of the cargo issues its "Master B/L" to the NVOCC.
• Intermodal B/L: a through B/L covering cargo moving via two or more different modes of transportation; truck, train, airplane, or vessel. Also known as a Multimodal B/L or Combined Transport B/L.
• Master B/L: a B/L issued by the actual transporter of the cargo showing the shipper to be a freight forwarder or consolidator (acting as an NVOCC), when the NVOCC issues its House B/L to the shipper.
• Through B/L: a B/L covering the entire transit of cargo from its point of origin to its final destination and applying to all of the connecting carriers even though they are not parties to the contract.

B/L or Blading - See "Bill of Lading."

Block

A device with a roller through which chain or rope is passed as a turning point to facilitate moving or pulling a load; a pulley. See "Tackle."

Blocking and Bracing

Materials (usually lumber) used to secure, immobilize and protect cargo by preventing its free movement or shifting during transit. See "Cargo Packing" Appendix A.

Blue Water

A term used to distinguish ocean-going vessels from vessels used on inland or coastal waters (referred to as "Brown Water"). Blue water vessels are generally larger and more strongly built to endure the open ocean without the benefit of shelter, unlike brown water vessels that can seek a safe harbor when a storm is forecast.

Board

To gain access to a vessel by going "onboard" or "aboard."

Board Foot

A unit of lumber measurement equal to the volume of a piece of wood one foot square by one inch thick (144 cubic inches.)

Boatswain (pronounced "Boh' sun")

The crewman in charge of the deck crew and equipment.

Bollard

a steel post or posts anchored to the pier to which ship’s mooring lines are secured. Double bollards are sometimes angled away from each other.

Bonded Cargo

Cargo moving under a bond to U.S. Customs or Internal Revenue Service warehouse, to be delivered or released only under stated conditions.

Bonded Warehouse

A warehouse authorized by Customs authorities for more secure storage of goods on which payment of duties is deferred until the goods are removed.

Booking

Arrangements with a carrier for the acceptance and carriage of cargo; i.e., a space reservation.

Boom

1. A heavy spar, usually attached to a mast, used for lifting cargo and equipment.
2. A long spar extending the length of a sail on a sailboat.

Bordereau

1. A multiple entry insurance declaration form.
2. A multiple entry list of insurance claims.
3. Any list of documents or other items.

Both-To- Blame Collision Clause

When two vessels collide, they become liable to each other proportionately for the total damage. The vessel with the lesser damage may impose upon the cargo being carried to contribute to the amount to be paid to the other vessel. The "Both to Blame Collision Clause" in the cargo policy provides that in such event, the cargo policy will cover such contribution. See "Collision Clause" and "Cross Liabilities."

Bottomry Bond

An ancient form of ship’s mortgage (now obsolete). Before the days of modern communications and banking, when ships were in foreign ports and in need of supplies or repairs, the captain could pledge the vessel (in rem) as security for a loan. Loans taken out against the cargo were called "respondentia."

Bow

The front or forward part of a vessel, opposite the stern.

Bow Thruster

A propeller mounted transversely in the forefoot (and sometimes the stern) of a vessel to push the vessel sideways. It can be used during docking maneuvers instead of a tug.

Brackish

An intermingling of sea (salt) water and fresh water.

Break Bulk

1. Non-containerized cargo such as cartons, pallets, boxes, barrels as well as pipe, lumber, or steel stowed directly in the vessel's hold as opposed to containerized or bulk cargo. See "Containerization" and "Bulk Shipments."
2. To unload and distribute a portion or all of the contents of a rail car, container, or trailer.

Bridge

Part of the vessel enclosing the steering, propulsion and other controls, and navigation instruments from which the officers control the vessel.

Brine

Water that is heavily saturated with salt, e.g. seawater.

Broken Stowage

The loss of space in the hold of a vessel caused by irregularity in the shape of packages. Any void or empty space in a container not occupied by cargo, as opposed to solid stow.

Brown Water

A term used to describe vessels, e.g. tugs and barges, working on inland rivers or coastal waters, as opposed to vessels on the ocean. See "Blue Water."

Bulk Cargo - See "Bulk Shipments."

Bulkhead

1. Vertical partitions (usually running athwartships) separating compartments in a vessel, railcar, aircraft, or truck (corresponding to walls in a building).

2. A retaining wall running along the shore at the head of a pier to resist erosion of the beach and provide deep water all along the pier with an apron to provide access to the pier from the road or parking lot.

Bulk Shipments

Shipments which are not packaged, but are loaded directly into the vessel's holds. Examples of commodities that can be shipped in bulk are ores, coal, scrap iron, grain, vegetable oil, tallow, fuel oil, fertilizers, and similar commodities.

Bulwark

An extension of a vessel's side above the main deck approximately waist-high. See also "Gunwale."

Bumbershoot

A marine insurance policy covering multiple liability coverages in excess of one or more different underlying policies (comparable to the Commercial Liability Umbrella covering liabilities on land). "Bumbershoot" is the English word for "Umbrella," i.e. "all encompassing."

Bunkers

Fuel to be used by the vessel’s engines for power during the voyage; but not fuel loaded on board the vessel as cargo.

Buoy

A floating marker or navigational device that is anchored in one spot. Different colors and shapes designate channels or mark hazards or obstructions.

Buoyancy

The resulting upward force exerted by a liquid on a floating object equal to the weight of water displaced; the ability of a vessel to float. See "Vessel Stability."

Burdened Vessel - See "Give-way Vessel."

Burnt

A vessel is considered "burnt" if there is some damage by fire to some structural part of the vessel. See "Fire."