The vocabulary of this trade is old and unforgiving.
Here is what the words actually mean, so nobody signs something they have not understood.
What is a voyage charter?
A voyage charter is a contract to carry a specific cargo between named ports for an agreed freight, paid per tonne or as a lumpsum. The shipowner keeps control of the vessel and normally pays the voyage costs such as bunkers and port charges, unless the parties agree otherwise.
What is the difference between a voyage charter and a time charter?
In a voyage charter you buy a single carriage and pay freight for it. In a time charter you hire the vessel for a period, pay hire per day, and take on the running costs of trading her, including bunkers and port charges. Voyage charters suit one-off parcels; time charters suit a repeating flow of cargo.
What is breakbulk cargo?
Breakbulk is general cargo loaded and discharged piece by piece rather than in containers or poured in bulk. Steel bundles, bagged goods, timber packs, reels and machinery are typical. It is handled with the ship’s gear or shore cranes and needs a stowage and lashing plan.
What is project cargo?
Project cargo is oversized, overweight or indivisible cargo that cannot be split into standard units: transformers, turbines, plant sections, pressure vessels. It requires lifting studies, route surveys and often special vessels or equipment.
What is a laycan?
Laycan is short for laydays and cancelling. It is the window during which the vessel must present herself ready to load. If she arrives before the first layday the charterer need not start loading; if she has not arrived by the cancelling date the charterer may cancel the charter.
What is demurrage?
Demurrage is the amount payable to the shipowner when loading or discharging takes longer than the laytime agreed in the charter party. It is compensation for the vessel being detained, and it is calculated per day or pro rata.
What does FIOS mean?
FIOS stands for Free In and Out Stowed. It means the charterer, not the shipowner, bears the cost of loading, stowing and discharging the cargo. Variants such as FIO and FILO shift those costs differently, so the exact term matters when comparing freight quotes.
How quickly will I get a freight quote?
A straightforward enquiry is answered the same working day, with a position and a freight indication. Where the cargo needs a lifting study, a route survey or a hold inspection before a rate can be given, we say so the same day rather than quote blind.
What information is needed to quote a cargo?
The commodity and its form, the quantity, the load and discharge ports, and the laycan. For breakbulk and project cargo, add the dimensions and weight of the heaviest single piece, and whether either port has gear. If loading and discharge terms are already agreed, say which ones.
Can a small parcel be shipped as a part cargo?
Yes. A parcel too small to fill a vessel on its own can be carried as a part cargo alongside other cargo, paying a share of the voyage. It is often the cheapest way to move between 1,000 and 8,000 tonnes.
What is the difference between a shipbroker and an operator?
A shipbroker introduces cargo to tonnage and is paid a commission by the party that engages it; the contract of carriage is between the cargo owner and the shipowner. An operator takes the vessel on charter itself and then sells the carriage on, becoming the disponent owner and carrying the commercial risk between the two freights. The same company can do both, in different deals.