COMMERCIAL MANAGEMENT IN SHIPPINGllrc.mcast.edu.mt/digitalversion/Table_of_Contents_11105.pdf7 OIL CARGO MEASUREiMENT .....222 APIIIP,ASTM tables, ullaging, cargo calculations and

THE NAUTICAL INSTITUTE

COMMERCIAL MANAGEMENT

IN SHIPPING

by Don L. Dykstra, BSc, MSc, MNI

CONTENTS

page Foreword ....................................................................................... i

... Introduction ................................................................................. 111

Chapter page 1 BASIC VESSEL CHARACTERISTICS ......................... 1

Conversion factors, vessel characteristics, classification of bulk carriers and tankers by dwt, Plimsoll mark, deadweight scale, special equipment.

........................ 2 MAXIMISING CARGO CAPACITY.. -26

Apparent densities of oil and dry bulkproducts, stowage factors, deadweight and cubic cargo, seasonal restrictions, cargo shut- out, bunker burn-off, maximum cargo for Panama Canal transit, maximising oil cargo, volume correction factors, chemical cargoes.

3 VOYAGE COSTS ESTIMATING.. ............................... .43

Worldscale explained, operating costs of steam vs. Diesel propelled tankers, Suez and Panama Canal tolls, capital, operating and voyage costs, brokerage and address commissions, comprehensive voyage cost spreadsheet,T/C equivalent, indexed hire rates, cash-

~ ~

flow statements, reverse worldscale calculation.

4 TIME CHARTER PARTIES.. ...................................... .68

Shelltime 4 analysed and amended, cancellation clause, bunker clause, approvals clause, performance criteria, BIMCO 2004 time charter war risk clause, modified arbitration clause plus 28 rider clauses.

5 VOYAGE CHARTER PARTIES .................................. 127

Amended Asbatankvoy, commissions, cargo heating, payment of freight, Notice of Readiness, laytime and demurrage clauses to protect vessel owner and charterer, transshipment areas, comprehensive pumping clause for tankers, ice clauses, issuance of Bills of Lading, early departure procedure, delivery wlo BIL, Letter of Indemnity, BIMCO 2004 war risk voyage charter clause, modified lien clause, agents, modified arbitration clause.

6 BILLS OF LADING ................................................... 169

88 B L subjects in relation to Hague-Visby Rules and to Letters of Credit.

vi THE NAUTICAL INSTITUTE

7 OIL CARGO MEASUREiMENT ................................ 222

APIIIP,ASTM tables, ullaging, cargo calculations and terminology, self-correcting ullage sheet, vessel experience factor, ROB and OBQ, determination of litre weight, errors, wedge formula, cargo claims, cargo retention clauses in a clp, unpumpable and unreacheable oil.

8 DRAFT SURVEY ....................................................... 249

Law ofArchimedes, calculation of corrections for: draft marks, hog and sag, trim, list, displacement, determination of the constant, errors.

9 FUEL MANAGEMENT ............................................... 264

Fuel consumption vs speed, reaching port with insufficient fuel with examples, determining economic speed, comprehensive selection of optimum bunker port, fuel grades and specifications, IS0 8217, testing parameters.

10 FINANCIAL PLANNING ......................................... ..288

Return on investment, payback period, capital budget factors, compound interest and present value tables explained, rule of 72, odds and probability of success, pv cash-flow analysis, annuity, mortgage payments on a new ship, setting t/c rates, depreciation methods, buy vs bareboat vs time-charter decisions, lay-up vs continue trading.

1 1 LETTERS OF CREDIT ............................................. 3 18 Minimising commercial risks with UCs, ICC and UCP rules, actual example of an U C transaction with supporting documents, 100 U C subjects explained and practical suggestions for the shipping industry.

12 ANATOMY OF AN ARBITRATION CASE ................ 357

Actual case, including copies of the awards.

Appendices ................................................................................. 37 1

Bibliography ............................................................................ 480

Index ......................................................................................... 486

COMMERCIAL MANAGEMENT IN SHIPPING vii

INDEX

A.S.T.M ..................................... 3 method ................................. 15 1

Aalborg .............. .. .................. 361 abandonment ............................. 366 abbreviations .................... 328, 373 about ................... 10, 33, 64, 115,

186, 216, 249, 296 .............. about (approx, circa) .................. 331 acceptance ................... .... 139, 363 act

of God ...................................... 96 of war ............................... 96, 221

additional war expenses .............. 100 address commission .............. 66, 133 adjuster .................................. 160 admiralty lawyer .......... 97, 172, 205

.......... advances ....................... .. 98 ................ adverse weather periods 94

advising bank ............ 323, 331, 346 AFRA ............................. 231, 373 Aframax .......................... 7, 198 agency .................... 5, 34, 165, 382

charges ............ .. ........ .. ....... 146 .......... fees ................... .. 55, 79

agents ............................ .. ....... 165 airdraft ...................... .. ............... 22

...... AIS ............................. .. 374 alcohol ............................... 84

policy ....................... .. . . . . 198 violations .............................. 12 1

all fast ......................... .. .......... 138 alterationslcorrections .......... .... 332 aluminium ................................. 286 always afloat ............... .. ...... 75, 134 ambient ............................. 229, 230

temperature ............ .. ..... 11 1, 148 ambiguity .......... .. .... ... ......... 332 amendment ............................ 332 American

Bureau of Shipping .......... 373. 480 Petroleum Institute .................. 374 Petroleum Institute (API)

......... 27. 41. 222. 226. 231.

standards .............................. 222 Societv for Testine and Materials

. . . analysis ...................................... 279 annu~ty ...................................... 292 API ...................... 281, 374. 410

apparent good order and condition ...................... 175. 186. 196

appeal ...................... 107. 207. 369 applicant ................... ..... 352. 353 applicant's bank ......................... 325 approval ....................................... 92 Arabian Gulf ................ 48 . 52 . 115 . . . . .

....................... ..... 373. 496 ........ Arab Light ....................... .. 41

arbitration ........ 107. 133. 146. 322. ............................. .346. 368

Act ..................................... 107 Act 1996 .......................... .... 167

......... clauses ....................... .. 182 ....... ..... law ................... .. .. 166

~~ ~~~ . -~

procedure ................................ 367 arbitrator .................. 107. 166. 357

.......... Archimedes ........... .. 12. 249 ............... aromatic hydrocarbons 227 ........ ARPA .................... .. .70. 374

arrest .......................... ..... 96. 123 period ........................... .. ..... 365

arrival window (Laycan) ............... 62 arrtved ship ................................ 414 ASBATANKVOY ......... 22. 60. 127.

..... 177. 182. 201. 211. 235.

............................... 245. 414 CIP form ............................... 130

ash ......................... .. ......... 285 asphalt carrier .................... .. ........ 7 assignment of proceeds ............... 333 ASTM ......... 27. 226, 374, 386, 480

tables ........................ .. ........ 227 aspresented .............. 173. 212. 341 at-the-top-of-the-tide ...... .. ....... 198 attachments ............................... 334 authenticated ............................. 327 authentication .................... ..... 332 authenticity ................ .. ......... 334 automatic

Identification System (AIS) ...................... .. ..... 125. 374 . . ....................................... auxlhary 93

average Freight Rate Assessment ..... 7. 373 rate of return service speed

award ...... 296. 470. 472. 474. 476

486 THE NAUTICAL INSTITUTE

B BIL (Bill of Lading)

accomplished ........................... 174 and freight ............................... 200 antedated ........................ ..... 178 apparent order and condition ... I74 as carrier ................................. 183 as presented .................... 177. 183 authority to sign ...................... 178 backdated .................... ............ 178 bearer ................... .. ............. 180 blank ...................................... 180 blank endorsed ........................ 18 1 breach ..................................... 182 charter parry ............................ 184

........ claused ...................... ... 185 clean ...................... 175, 185, 337

......... delivery of goods without 190 demise clause .......................... 192

....... elecuonic ................... ... 181 ........................... endorsement 197

........ ....................... format ... 199 fraudulent ............................... 196 freight due clause ..................... 205 freight fowarder ....................... 336 guidelines for signing ............... 440 house .............................. 202, 336 inaccurate ................... .. ....... 188 mulfimodal ............................ 336 non-negotiable ........... ... ........ 210

.................................... ocean 339 on-board date .................. 178, 210 order .................... .. .............. 170 .. o - ~

postdated ................................ 178 prepaid freight ......................... 201 received for shipment ............... 212 sets ....................... .. ........... 215 shipped ........................... ..... 2 12 short form ............................... 216 signing as presented ................. 216 stale ..................................... 2 16 ~~ ~ ~

straight .................................... 217 straight or named ..................... 171

....... baby Cape ......................... ... 6 Back-Haul Bulk Carriers Inc . (BBC) .

358 back-haul voyage .......................... 60 backdating ................................. 342 back pressure ....................... 21. 278 bale space .................................... 20 ballast

capacity .............................. 4. 20 exchange regulations ................ 114 mileage ........................... ... .... 95 tanks ....................................... 1 16 water ............................... 115. 261

COMMERC

Baltic ...................... 374. 375. 382 banker's acceptances/discounting 334 banking

charges .................................... 334 hours .......................... .. ........ 334

bare-boat charter .......................... 58 barrels (bbl) ................................. 41 basic sediment and water (BS&W)

..................... ... ........... 285 BCM ................................. 22, 374

.......................... beam .... 8, 374 Beaufort .................................... 408

................... wind scale .... 10, 94 beneficiary ................................. 325

statement ................................ 335 BERGE STAVANGER ............... 53 bills of lading ............. 82, 154, 169,

............................... 177, 335 Electronic Registry Organization

....................................... 181 .... ..................... BIMCO ... 55, 394

bunker contract confirmation note ................... ... .............. 453

CONWARTIME 1993 .............. 99 internet calculator ...................... 67

...... Standard Bunker Contract 206, ....................... ... ........ 287

standard bunker contract ......... 449 boilers ...................... ... ........... 361

.... ......................... BOLERO ... 181 both to blame .............. .. ........... 160

........................ collision clause 103 ...................... box shaped vessels 254

............................ boycott clause 108

..... brackish water 1, 14, 32, 33, 35, ....................................... 261

breach .................... ... ............. 166 .... ..................... breakdowns ... 122

British Arbitration Act of 1996 .... 108 brokerage . .

comm~ss~on ............................. 133 ....................................... houses 63

bulk cargoes ........................ ...... 6 ,20

........... . ............. carriers ... 14 373

................................... capacity 19 fuel contract ............................ 264

.................... fuel specifications 264 ...................................... nrices 275

burchase confirmation note ...... 264 ............. ..

.......................... burden of proof 183 BureauVeritas .................... 375, 480 Byrne, Prof . James E ................... 321

>IAL MANAGEMENT IN SHIPPING 487

rider clauses ................. CIF

cancellation charge ..................... 277 Capesize ................ 6. 50. 311. 313.

............................... 314, 316 capital

budgeting ................................ 290 costs ................... .. ................. 5 7 investment decisions ................ 290

captureblockade ........................ 124 carbon residue ............................ 285 cargo

calculation ....................... 226 . 229 errors in ................................ 241

capacity ...................... .......... ..... 26 computers ................................. 15 contamination ...... 8, 87, 247, 346 control room ........................... 225 control room (CCR) .................. 15 deck ................ ..... ................ 189 discrepancy claims ................... 245 dry ......................................... 29 heating .................................... 134 inspector's certificate ............... 322 loss1ROB claims ...................... 136 pumps ....................................... 2 1 retention clause ...................... 136 sample test analysis .................. 143

Caniage of Goods by Sea Acts (COGSA) ............... 169, 186

cash against documents (CAD)320, 458 in advance ............................... 3 19

cash-flow PV analysis .................. 297 CBT ................................. 21, 375 CCR ....................................... 375 Certificate ~ ~ ~

of Compcrmce ...................... 7 L of C:umplimce lnspecrlon ........ 140 uf Financial Kcsponsibiliry . . . 7 0 of Origin ......................... 327. 336 of Registry ................................. 70

cerrification ................................ 337 charges ..................................... 327 charter

dry-cargo .................................. 58 extension option ........................ 76

charterers to provide ..................... 79 charter party

bare boar ................................... 58 time ........................................... 68 voyage ..................................... 127 elements ............ 25, 68, 127, 336,

...................... 373, 394, 482 B/Ls ....................................... 336 contract ..................................... 62 instructions ............................. 414 . . negotlatlons ............................... 60

cost ....................................... 134 value ....................................... 170

Classification Soc~ety ...... 9. 71. 119. ....................................... 382

Certificates .............................. 196 clause paramount ...... 105. 158. 211

..................................... cleaning 153 clean ballast tanks (CBT) ..... 31. 116 clean bills of lading ..................... 323 closed loading .............................. 23 CMI ................... .. ................ 394 collateral .................................... 322 collection basis ........................... 337 combination carrier ............... 1, 386 . . ......... ................... comm~ss~ons .. 65 Company Security Officer (CSO) 125 compliance .................. ... ....... 338 compound interest ..................... 292 . . condluon ............................... .... 187 . . cond~uons .................................. 338 conduct of vessel's personnel ........ 84 confirmation note ....................... 287 conformity ................... ... ...... 339 conical tank bottom ...................... 19 consignee ................................... 341 consignment sale ........................ 320 consignor ................................... 341 construction ............................... 108 constructive total loss ................... 86 continuous synopsis record (CSR)

....................................... 125 contract of carriage ..................... 187 conversion factors ......... 2, 237, 242 cost

per port day .............................. 62 per sea day ................................ 62

COW .......... 4, 23, 48, 59, 65, 77, ......... 87, 93, 117, 148, 233, ............................... 237. 376

creditworthiness ......................... 320 crewing agency ........................... 367 currency ................................. ... 339 custom clearance ........................ 415

D deadweight ......... 8. 20. 37. 41. 410

calculation formula .................... 14 cargo .................................. 27, 32 scale ........................................ 12 Summer ............. ...... 389, 390 survey ..................................... 259

deckline ......................................... 9 deck cargo .................................. 342

....... ........... demise charterer .... 57

488 THE NAUTICAL INSTITUTE

demurrage .... 46. 62. 144. 179. 342 charees ............................. ...... 68 . definition ................................... 62

density ............. 3, 27, 28, 227, 230, .............. 241, 280, 283, 410

apparent ................. 3, 17, 28, 257 relative ................... .. ..... 28, 228

depreciation ............................... 307 accelerated .............................. 307

derricks ........................................ 24 description of goods ........... 326, 343 despatch clause ............................ 68 deviation .................. ... .... 8 193

clause ...................................... 164 Diesel ................. 48, 93, 272, 278,

...................... 378, 380, 384 ship ................... ... .............. 49

disbursements ....................... 86, 98 discrepancies ...................... 328, 343 displacement .......... .12, 33, 37, 41,

.............. 249, 256, 383, 384 correction ................................ 258

dissolved compounds .................... 17 dockage ....................................... 46

charges ...................................... 60 Documentarv Letter of Credit

bottom ................................... 4. 6 hull .................... .... ............ 17

draft ....................................... 344 mark ...

corrections ............................ 250 marks ......................... 11, 15, 262 restrictions ................... 11, 25. 27 Summer ....................... 33. 35. 37 survey ................................... 249

calculations ........................... 258 errors ................................... 262

transit ................... .... ........... 37 drawee ....................................... 326 drugs and alcohol abuse ................ 84 dry

bulk carriers ................................ 6 cargo bilge ............................... 362

drydocking ............. .... ............ 89 dues ....................................... 150 due diligence ........... ... ..... 73. 194 dunnage ................ 12. 20. 218. 219 DWAT .................. .... ....... 8. 378 DWCC ................................. 8. 378

E e-mail ............................... 126. 373

Early Departure Procedure (EDP) ........................ 83. 155. 196

economic speed .................. 264. 270 eductors ....................................... 21 elecuonic data interchange ......... 196 endorsement ................... .. ...... 344 end of sea passage (EoSP) .......... 415 . . ep~dennc .................................... 122 escalatine clauses ........................ 306 . escalation clauses ....................... 292 Estoppel .................................... 197 examination of documents .......... 344 exceptions .......... .. .............. 96. 197 exemption .................................. 197 expected pay-off ......................... 297 expiration date ........................... 345 export

licence ..................................... 341 . . resmct~ons .............................. 106

e m a expenses .......................... 118

Fahrenheit .............................. 3 Falcon Offshore Inc . (Falcon) ..... 358 Federal Water Pollution Control Act

final voyage ................... .... ...... 85

costs ........................ ... ........ 315 gauging instruments ................ 225 per diem rate ................... .. ...... 63 rate

dserentials ............................. 45 ................................ schedules 43

fixture negotiations ....................... 66 flag state ............................... 72. 88 flash point .......................... 151. 284 flexible hire rate ............................ 64 floating storage ............................. 98

................................ FONASBA 394 force majeure ..................... 338. 345 foreign exchange controls ........... 338 forum ....................................... 199

shopping ................................. 204 FRAMOs ..................... ..... ...... 21 Frank Mohn AS ........................... 21 fraudlforgery .............................. 200 free

laytime ....................... ... ....... 44 practique ................................. 415 water (nwi) ............................. 235

freeboard ............................. 10. 262 freight ......................... .. ........ 135

contracts ................................... 68 . . lnvolce .................................... 411

COMMERC :IAL MANAGEMENT IN SHIPPING 489

payable ................................... 345 payablelprepaid ....................... 351 rates ... 17. 27. 45. 104. 204. 272

Fresh Water Allowance (FWA) ............................ 11. 16. 18

fresh water consumption ............... 78 FRISIAN ENTERPRISE .......... 1. 4.

18. 32 33 41 50 69 ........ . . . . . . . . . . . .............................. 412, 413

fuel consumption ....... 19, 62. 65, 265.

267, 272 ............................... acmal ................................... 266 calculated ............................. 266

expenses ................................... 19 management ............ .... ........ 264 specification .................... 277, 279

full sea speed ................ .............. 270 fumigation ................................. 153 functus officio ............................ 367 fundamental breach .................... 194 FWA ............... 33, 35, 37, 39, 41

gas freeing ......................... 4, 24, 90 gearless ........................................ 6 general

average ..................... 78, 133, 160 adjustments ........................ 105 New Jason clause .................. 104

cargo ........................ .... . . . 153 exceptions clause ..................... 154

generators .................... .... ..... 361 geographical deviation ................ 193 Ge~manischer Lloyd ................... 380 gram space .............................. 4, 20 Great Barrier Reef ...................... 115 Great Lakes ........ 11, 114, 380, 382 Greenwich MeanTime ................. 80 gross

freight revenue ........................... 58 ObservedVolume (GOV) ......... 236 Registered Tons (GRT) 17, 18, 381 Standardvolume (GSV) ......... 229,

.............. 236, 282, 283, 381 voyage revenue .......................... 60

guarantee ................................... 345 guaranteed speed ................... 87, 94 Guide to Helicopter Ship Operations

....................................... 112

H S ............................. 118. 233 fevel .......................... .. .... 148

Hague-Visby Rules .............. 97. 105. ..... 159. 169. 173. 182. 187.

...... 195. 198. 201. 207. 417 Hague Rules ...... 97. 105. 159. 169.

.............. 173. 201. 233. 417 Hamburg Rules .......... 97. 105. 159.

hand-over .................................. 173 summary ................................. 360

Handies ................................ 6 . 173 ~ ~~~ ~ .. ~ .

Handymax ............................ 6, 173 Hare. Prof . John E ...................... 182 Harter Act ................... .. ........ 173 hatch

coaming ................... ...... 22 . 173 .

covers ................................... 3 6 1 ......... hearine .................... .... 368 -

heat ......................................... 24 ~~~~ ~ ... - .

heating clause ................ ...... 11 1 Himalaya clause ......................... 202 bog ................ 15, 234, 250, 254 Halloman. Captain Michael ........ 263 . . . bost~hues .................... ... ........ 88 hours for loading and discharging143 hull stress calculator ..................... 70 hydrometer ............. 17. 18. 30. 257 hydrostatic

scale .................... .. ....... 250. 263 tables ...................................... 253

1.T.E compliance ....................... 123 IACS ....................................... 120 ice ................................. 76. 151 ice-bound ........... 74. 122. 380. 384 ice-free port ................ ..... ...... 151 icebergs ......................................... 4 icebreakers ......................... 122, 152 ICSIOCIMF .............................. 112

Ship to ShipTransfer Guide75, 149 identification .............................. 217

number ................................... 125 . . ldenuty .................................. 200 IF0 380 ............................. 276, 281

cSt ....................................... 275 IGS .................. 87, 93, 116, 382 immersed ................................... 249 immersion ................................. 391 immigration ............................... 415 IMO ............. 5, 71, 73, 118, 198,

............. 286, 382, 384, 389,

...................... 390, 482, 483 ................................... number 125

import ............................... 218, 219 ............. ................ licence ... 337 . .

impurltles .......................... 186, 279 in-date certificates ...................... 214 in-line drip samples .................... 283 inconsistency ............. 155, 203, 346

490 THE NAUTICAL INSTITUTE

incorporated ........................ 73. 187 INCO terms ...................... 217. 347 indemnify ................. 103. 176. 204 independent ............................. 186

cargo inspector ........................ 176 surveyor .......................... 135, 148

indexed rate ................................. 64 industrial action ........................... 87 inert

gas ............................... 116, 225 ...................... Gas System (IGS) 23

inerted .......................... 76, 77, 153 infected area ................................ 87 . . ~njured ....................................... 202

person ....................................... 87 injurious cargoes .......................... 98 innage ....................................... 223 innocent B L holder ................... 128 insolvent ................................. 322 inspection ...................... .... ...... 5 inspectionivetting ....................... 131 Inspector's Certificate of Inspection

....................................... 135 installment drawings ................... 346 Institute

of London Underwriters .... 74 . 382 ................. .~ ., ~ ~-

Warranty Trading Limits ......... 76 Warranty Limits ...... 152, 212, 382

instructions ........................ 328, 346 ........... ................... and logs .. 82

tncurance coveragc ................. 346 Interbank SWb-I' system . . . . . 323 INTERCARGO ....................... 39.1 internal rate of return (IRR) ....... 307 International

Association of Classification Societies (IACS) ..................... 70

Chamber of Commerce (ICC) ............................... 217. 321

commodity trading .................. 31 8 Council on Combustion

Engines (CIMAC) ................ 280 Group of P&I Clubs .................. 78 Load Line Convention ............... 10 Maritime Organization ....... 72. 382 Safety Management (ISM)

regulations ............................. 7 1 Ship Security Certificate (ISSC) 125 Standards Organization (ISO) .. 280 Standby Practices OSP98) ....... 321 Tonnage Certificate ................... 70

investment objective ................... 298 . . lnvolces ...................................... 347 in class .................... ... ................ 9 irrevocable

Letter of Credit ....... 83. 290. 325. ...................................... 348

Transferable Standby .... 136. 156

ISGOTT .................. 116. 118. 284 requirements ........................... 359

ISM ..... certification ............................. 363 Code ............... .... ............ 196 guidelines ................................ 360

ISPS ....................................... 125 Code ....................................... 140

J Jason clause ............................... 159 . . . . junsdlct~on ............................... 199

Kay. Mr . Arthur ......................... 248 keel to masthead .......................... 22 kinematic viscosity ...................... 283

scale ....................................... 284

L U C

fees ................... ..... .......... 340 revocable ................................. 351 standby ................................... 318

labour remlations ....................... 123 . laden mileape ............................... 95 . language .................................. 348 LasVegas syndrome ...................... 60 latest ship date ................... 326. 348 law and litigation ........................ 107 lay-up ....................................... 315 laycan ...................... .... ...... 131 laydays ............ .. ....... 76. 131. 138 layer correction .......................... 254 laying up ...................................... 98 laytime ....................................... 414

definition ................................ 394 interpretation rules .................. 394 total ....................................... 132 used ....................................... 143

LBP ............ 8, 16, 255, 256, 383 leading marks ............................. 208 leasing ..................................... 310 Lener - .....

of Authorisation ................. 83, 439 of Credit ....................... 318, 320 of Credit (UC) ................ 129. 179

stand-by ............................... 172 of Indemnity ( I d ) ........... 83. 129.

157. 180. 204. 318. 443 ...... of Protest ................................ 125

form ............... ... ................ 433 liability . .

limltauon of ............................. 160 lien ........................ 96. 127. 164

COMMERCIAL MANAGEMENT IN SHIPPING 491

clause ................................... 204 lightened ......................... .. ...... 34 lightening .................................... 26 ligbtering ............ .. ...... 26, 62, 1 11 Light DeadweigbtTon .................. 14 light ship ............................. 12, 259 limitation

of hability ...................... ... ....... 206 of time .................................... 208

liner (container) trade ................ 170 list 234

correction ............................... 257 litre weight (LW ....................... 239

factor .............. .. .................. 29 Lloyds Register ... 11, 481, 483, 485 LOA 8, 383 loaded on board ......................... 348 London Maritime Arbitrators'

Association (LMAA)107, 167 longitudinal centre of flotation (LCF)

....................... .. .......... 254 LOOP (Louisiana Offshore Oil Port) .

......................... 24, 52, 127 loss

of vessel .................................... 86 prevention and risk management

12R ... lump sum payment ...................... 47

M management company ................. 67 manifold samples ....................... 248 marine su~erintendent ................... 1 marks and numbers ................... 348 MARPOL

73178 .................... .. ............. 1 13 Annex N (Sewage) regulations 114 AnnexV (Garbage) repulations 114 . regulations ...................... ..... 148

Mate's Receiot ................... 196 . 208 maximum

cubic cargo ............................... 36 oil cargo ......................... .. ...... 40 recognised speed ....................... 94 venting capacity ....................... 21

McGregor survey ....................... 361 Memorandum of ParisiTokyo ..... 140 metric system ................ ... ...... 2. 3 mis-description .......................... 209 Moisture Content Certificate ...... 263 mooring

at sea terminals .......... .. .......... 149 master .............................. .... 142

negotiable bill of lading ............................ 318 . ...................... instrument 334 349

net Present Value (NPm ............... 114 ........ >- ~- ., ................. ~eg i s t e r ed~ ins (NRT) ....... 17, 18 Standardvolume (NSV) .......... 236

Nippon Kaiji Kyokai ..................... 11 non-economic decisions .............. 288 . . non-repatr~atlon ......................... 338 normal seaspeed ......................... 273 NorskeVeritas ...................... 12. 378 Nor* Sea crude oil ...................... 20 notice .......

of dishonour ............................ 343 of Protest (Nor) .............. 176, 237 of Readiness (NOR) ......... 140, 414 of Termination (Nom ................ 74

notifv address ............................. 210

analysis ......................... .. ...... 303 examples ................................. 299 method .......................... ... ... 305

NRT ....................... .. ............ 386

OBO ...................... 1. 4. 256. 386 master ..................................... 360

OCIMF

off-hire ............ .. ......................... 86 official office hours ..................... 416 oil .

canacltv ..................................... 20 . . cargo measurement .......... ........ 222 Companies International Marine

Forum Vessel Particulars Questionnaire (OCIMFWQ) ........................... ... ........ 69

Discharge Monitor (ODM) ...... 115 oollution ......................... ........ 113 stripping lines .......................... 362

on-top-of-the-tide ... ................... 32 On Board Quantity (OBQ) ......... 233 on or about ................................ 342 open account ............................. 320 operating costs ............................. 57 oppormnity cost ......................... 298 optimum bunker port ......... 264. 275 ordered meed ............... .. .......... 93 ore strengthened .................. ..... 25 original documents ..................... 349

492 THE NAUTICAL INSTITUTE

orimulsion ..................................... 6 clause ...................................... 110 outbreak of war ............................ 99 in and out ................................ 147 overtime ................... .... .......... 81 oumos ' .. ownership and operation ............. 120 deepwell ............................ 21. 245 . . ....... owners to provide ......................... 78 stripping .......... ........ 21

P&I Club ...................... 177. 185. 245

representative ................ 176. 212 coverage .................................. 19 1 insurance ........................... 78, 363

package definition ...................... 206 packing list (PL) ........................ 327 Panamax ............ ..... 6, 27, 37, 387 Panama Canal ............ 6, 11, 18, 27,

............... 34, 39, 40, 44, 54, 57, 68, 131, 387 ..................

rolls ................ ...... ................ 43 Universal Measurement System

Net Tons (PCUMSNT) .......... 55 partial

final award .............................. 366 shipment ................ 326, 340, 350

pass-through charge ..................... 61 payback period ........................... 289 Pensky-Martens closed cup (PMCC)

method ........................... 284 PEREGRINEX ................. 358, 365 performance ................................. 92 periodical drydocking ................... 89 permanent Summer ...................... 10 personal protective equipment (PPE)

....................................... I18 Petroleum

Insoector ................... .... ....... 135

quarantine .......................... 87. 153

radiographic NOR ....................... 416 reachable on arrival .................... 146 recourse ............................. 213, 351 redelivery ................................... 363 registered owner .............. .. ....... 55 Reid vapour pressure .................. 246 reimbursement ........................... 351 reimbursing bank ............... 328, 331 remaining on board (ROB) .233, 277 requisition .................................... 99 return on investment .................. 288 rule of 72 ................................... 294

safety Management Certificate (SMC) . 72 master's resoonsibilirv .............. 118

safe berthinehhiftine .................. 146 ..... . . ~~~~

sag ................ 15, 234. 250. 254 said to contain ............................ 352 sale-leaseback ..... .. .................. 311 salinity ........ 11, 14, 18. 29, 35. 39.

ratio ....................................... 258 ................ ......................................... ~e'asurement~ables 226 salvage 95

....................................... pilot ......................................... 84 value 311 ............................ charges .................................... 276 sampling thief 257

.................................... .... embarking and disembarking 118 sanctions 341 Platou ..................... .... ....... . . SBM .......... 4. 46. 48. 58. 61. 67. Plimsoll .......................... 10. 15. 18 ............................... 11 1. 389

............................ Mark .............................. 8, 10, 18 SBT 4, 20, 389 ............................... ................ political risk 338 scale 3, 12, 13, 14, 17,

DO,- t ............................... 386 . 408 ... charges .................................... 277 SCM ......................................... 22 . . comb~natlons ....... ... ........... 152 SDWT .......... 8, 18, 20. 33. 35. 37. costs ......................................... 61 ....... 39. 41. 44. 47. 58. 256 State Inspection .......... ... ..... 196 sea

.................................. pour point 285 island load and discharge ......... 141 presentation period ................... 328 trial ....................................... 362

....................... present value (PV) ...................... 294 waybills ...... 336 method ................... ... ........ 297 seasonal

................................. ....................... pro-forma invoice 319 allowances . . 10 ................................ proceedings ................ ... ....... 368 resrrlcuons 34

........................ product carriers .............................. 7 zone 9. 11. 33. 35 pumping ...................................... chart 10

COMMERCIAL MANAGEMENT IN SHIPPING 493

seaworthiness ............................. 214 second trim correction ................ 255 security ...................................... 125 segregated ballast tanks (SBT) 23. 31 service speed ......................... 90, 93 set-off claim ............................... 215 sheer snake .................................... 9 SHELLTIME

4 ............................. .......... 188 41 ................... ... .............. 68 4 cip ....................................... 100

SHELLVOY 5 ............................ 17 1 shin ....

brokers ............ ... ................ 192 inspection .................................. 9 1 records .................................... 260 security

Alert System (SSAS) ............. 125 Officer (SSO) ....................... 125 Plan (SSP) ............................ 125

to ship transfer guide .................................... 112 operations ............... .... ....... 72

Shipman 98 manning contract .... 364 Sidi Kerir ..................................... 52 sign convention .................. 253, 263 . . sll~cone ........................... ...... 286 simple interest ............................ 294 Single

Buoy Mooring (SBM) ......... 24. 72 Point Mooring (SPM) ................ 24

sloptanks ......... 21, 31, 40, 41, 115, - - . sludee ................... .. ................ 14

sublet .................... .. ............... 167 subletting ..................................... 85 Suezmax ................... .. ................. 7 Suez Canal .... 7, 18, 34, 44, 49, 53,

.......... 59, 61, 118, 131, 272 Net Tons (SCNT) .................... 50 tolls ................... .. ................. 43 Tonnage Cemficate ................... 70

sulphur ...................................... 286 SUMED pipeline ......................... 50 Summer

deadweight ................................ 12 tonnage .................................... 8

draft ............................ ............... 8 loadline ....................................... 8

supemumaries .................... ...... 85 .................................. supertankers 7

SWDT ....................................... 46

T

tank cleaning ............................ 90. 115 ovefll alarms .......................... 116

................ washiies and residues 89 . tankers

M m a x ................... ... ......... 142 chemical ....................... 8. 21. 42 clean ....................... .... ........... 7 fixture negotiations .................... 32 mammoth ........................... 7 turbine ...................................... 49

tariff svstem . formation ............................... 285 harmonised ..................... 171 . 209 . . . . . . . . . . .

~ . -~ \mall claims pn~icdure ............ 107 rdxe5 ..................................... 150 S.I.l.1 1'3rual Final Aunrd ........... 364 tax investment credits .............. 310

.. smuggling .................................... 87 technical management company 120 Society forworldwide Interbank temperature

Financial Communications correction ................................ 258 (SWIFT) ......................... 181 reduction tables ......................... 29

SOLAS ...................................... 125 terms 74 ..................................... 116 and conditions ......................... 217

spot rate ................... .. .............. 64 time-adjusted squat .................................. 36. 50 return on investment ................ 297 stale documents ......................... 353 value ....................................... 295 standard time charter .......................... 25 . 68 .....

(:nrrier&phd Cadc (SCAC) . 2 0 3 clauses .................................. 287 sizes ....................................... 4 equ~ralent (l'CE) .................... 63

stevedores .................................... 84 owner ........................................ 55 stores ......................................... 12 title ................... .... ........... 219 storm ........................ ... ........ 144 today's money method ................ 315 stowage factor .............................. 29 tons per centimetre (TPC) .......... 255 . stowaways .................................... 87 top-off ......................................... 26

494 THE NAUTICAL INSTITUTE

total ........ CalculatedVolume (TCV) 236 ObservedVolume (TOV) .......... 235 ReceivedVolume (TRV) ........... 236

........................ TOVALOP 106. 133 TPCKI'I ..................................... 16

....................... traffic separation 117 .................. transport documents 355 ... transshipment 104. 220. 326. 355

Areas (TSA) .............................. 43 .............. Pim and list corrections 260

tugboats ....................................... 84

U .......................... UCP 500 Rules 185

UK COGSA of 1971 ...................... 201

ULCC .................................. 7. 391 ullage ............................... 223. 236

............................... calculation 238 calculation spreadsheet ............ 232

......... level .......................... .. 224 opening ................................... 224 record ..................................... 168 system ..................................... 232 tape ......................... .... 116. 242 Temperature Interface (UTI)

.............................. 116. 223 ... UNCITRAL Draft Instrument 201

......... under-keel clearance (UKC) 36 uniform

Customs and Practices for Commercial Documentary Credits (UCP) ..... 175. 220. 321

United Nations Economic Commission for Europe (UN ECE) ...................... 254

............................. unpumpable 247 unreacheable .............................. 247 us

Arbitration Act of 1925 ............ 108 .... Coastguard safety inspection 140

CoastguardTanker Vessel Examination Lener (TVEL) .. 112

COGSA of 1936 ...................... 201 ............... Customs Regulations 113

Oil Pollution Act of 1990 ............. 5 ........... OPA90 liability insurance 45

Prime Interest Rate .................... 81 regulations .............................. 112

USK ......................................... 14

v vacuum ......... 2. 228. 230. 283. 410

gas oil ......................................... 7 vacuvators .................................... 26

. . valldaoon .................................. 334

.................................. vanadium 286 vapour

.................................. pressure 151 ....................... recovery system 116 .............. variable rate differentials 45

vessel ......... Experience Factor (VEF) 232 ................................... operations 2

Particulars Questionnaire (VPQ) 9 1 .............. Response Plan (VRP) 113 . . v~scoslty ............................... 44,283

VLBC 6. 392 VLCC 6. 18. 48. 52. 59.

115. 176. 272. 306. 308. 392

volume Correction Factor (VCF) ... 29. 226

...................... correction tables 227 voyage

charter 25, 68 .................................... party 129 . .

costs 57 ................. VOYWAR 1993 161. 221

war risk 99

insurance ............................. 100 water 285

........................ detecting paste 224 .................... waybills 128. 171. 355

weather ............... routeing instructions 117

.......... wedge formula 244. 260. 445 weight 356

.................................... wharfage 150 wharf rate .................................... 45 WNA 11

........................... Worldscale 43. 114 ................................ Association 43

Hours. Terms and Conditions (WSHTC) ........................ 47

Y ................... YorWAntwerp Rules 104

COMMERC XAL MANAGEMENT IN SHIPPING 495