T  U  R  A  M  E  L  K

 

Glossary

 

  Banking:

• BCL - Bank Comfort Letter - issued by the buyer's bank to assure the seller   that he is financially capable to conclude a commodity purchase.

• BG - Bank Guarantee - a form of bank instrument issued by seller/buyer to assure one another of their capability.

• Def LC - Deferred Letter of Credit - payment is effected after x number of days from the date of shipment.

• DLC - Documentary Letter of Credit.

• LC - Letter of Credit.

• PB - Performance bond - issued by the seller normally 2 % of contract value to guarantee delivery as per terms of contract.

• RLC - Revolving Letter of Credit - automatically re-instated for stated amount for x number of deliveries as per contract.

• SLC - Stand-by Letter of Credit.

• USD -  United States Dollars or US$ - currency of the United States of America.

  General Business Terminology, Documents:

• ICPO - Irrevocable Confirmed Purchase Order.

• LOI - Letter of Intent.

• RWA - Ready Willing & Able.

• FCO - Full Corporate Offer.

• FCPO -  Full Corporate Proforma Offer.

• Bid bond - A guarantee by an offeror that he will sign a contract if his offer is accepted.

• Bonded Warehouse - A warehouse in which goods-subject to excise taxes / custom duties are temporarily stored without the taxes or duties being assessed.

• Broker - An independent person or firm through whose offices transactions are effected between buyer and seller.

• Brokerage  - The fee paid to a broker in compensation for his services in arranging for a transaction between buyer and seller.

• Certificate of Origin - the certificate issued / arranged for issue by Seller certifying the source of the Shipment.

• Certificate of weight - the certificate issued by the independent marine surveyor certifying the weight of each Shipment in making this interim draught surveys requested by Seller shall count as Lay time used.

• Certificate of Analysis - the certificate issued by an authorized laboratory/association/agency upon examination of commodity being shipped.

• Certificate of insurance - the certificate issued by to the 'assured' certifying that an insurance has been effected and that a policy has been issued.

• Charter Party Agreement - Contracts of affreightment prepared & signed by the vessel owners and the charterers.

• Barter commercial - An agreement for the exchange of goods especially entered into by countries suffering shortages of hard currencies, or where debit and credit balances on the books of certain countries can be resolved only by the shipment of goods.

  Delivery Terms:

• DAF - Delivered at Frontier - Title, risk and responsibility for import clearance pass to buyer when delivered to named border point by seller. Used for any mode of transportation.

• DES - Delivered Ex Ship -- Title, risk, responsibility for vessel discharge and import clearance pass to buyer when seller delivers goods on board the ship to destination port. Used for sea or inland waterway transportation.

• DEQ - Delivered Ex Quay (Duty Paid) -- Title and risk pass to buyer when delivered on board the ship at the destination point by the seller who delivers goods on dock at destination point cleared for import. Used for sea or inland waterway transportation. DDU - Delivered Duty Unpaid -- Title, risk and responsibility of import clearance pass to buyer when seller delivers goods to named destination point. Used for any mode of transportation. Buyer is obligated for import clearance.

• DDU - Delivered Duty Unpaid -- Seller fulfills his obligation when goods have been made available at the named place in the country of importation.

• DDP - Delivered Duty Paid -- Title and risk pass to buyer when seller delivers goods to named destination point cleared for import. Used for any mode of transportation.

• EXW - Ex Works - Title and risk pass to buyer including payment of all transportation and insurance cost from the seller's door. Used for any mode of transportation.

• CFR - Cost and Freight - Title, risk and insurance cost pass to buyer when delivered on board the ship by seller who pays the transportation cost to the destination port. Used for sea or inland waterway transportation.

• CIF - Cost Insurance and Freight - seller contracts to deliver the material to the buyers named destination port at an agreed price inclusive of cost of material, insurance & freight. Used mainly for marine transportation.

• CIP - Carriage and Insurance Paid To --Title and risk pass to buyer when delivered to carrier by seller who pays transportation and insurance cost to destination. Used for any mode of transportation.

• CPT - Carriage Paid To -- Title, risk and insurance cost pass to buyer when delivered to carrier by seller who pays transportation cost to destination. Used for any mode of transportation.

• CNF - Cost, Insurance and Freight - Title and risk pass to buyer when delivered on board the ship by seller who pays transportation and insurance cost to destination port. Used for sea or inland waterway transportation.

• FAS - Free Alongside Ship -Title and risk pass to buyer including payment of all transportation and insurance cost once delivered alongside ship by the seller. Used for sea or inland waterway transportation. The export clearance obligation rests with the seller.

• FCA - Free Carrier - Title and risk pass to buyer including transportation and insurance cost when the seller delivers goods cleared for export to the carrier. Seller is obligated to load the goods on the Buyer's collecting vehicle; it is the Buyer's obligation to receive the Seller's arriving vehicle unloaded.

• FOB - Free On Board and risk pass to buyer including payment of all transportation and insurance cost once delivered on board the ship by the seller. Used for sea or inland waterway transportation.

  Shipping:

• Demurrage - means the financial compensation payable in accordance With for delays in completion of loading Buyer’s Vessel beyond Lay time.

• DWT - Dead Weight Tonnes.  

• ETA - Estimated Time of Arrival. 

• GMT - Greenwich Mean Time.

• ISO - International Standards Organisation.

• Lay can - the period during which Buyer’s Vessel may be loaded.

• Lay time - the time allowed for loading of Buyer’s Vessel.

• Loading Rate - the rate at which the contracted commodity is to be loaded at the loading port for the purposes of calculating Lay time.

• Metric Tonne - 1,000 (one thousand) kilograms, which is equal to 2204.62 lbs (two thousand two hundred and four point six two pounds).

• NOR -  the Notice Of Readiness validly tendered by the master of Vessel.

• RSS - Relevant Standard Specification.

• Turn time - the grace period specified in the RSS.

• WWD - Weather Working Days in which it is possible to load a Shipment without the interference of weather.

• M/T (or MT) - Metric Tonne - a unit of weight.

• B/L (or BoL) - Bill of Loading/Lading is a document of title issued by the vessel master, generally negotiable,  serves as evidence of terms & conditions of carriage.

• Berth - place assigned to a vessel in port when anchored or lying alongside a pier / quay / wharf ..etc., where it can load or discharge

• Bulk carrier - An ocean-going single-deck dry cargo vessel of more than 10,000 tons deadweight.

• Cape Vessels (140,000 -170,000 tonnes) - used to carry Coal and iron ore.

• Panamax Vessels (60,000 - 80,000 tonnes) - used to carry Coal, iron ore, fertilizer, grain and other bulk commodities.

• HandyMax Vessels (40,000 - 52,000 tonnes) - used to carry Coal, iron ore, fertilizer, grain, steel slabs and other bulk commodities.