Glossary

see also: Abbreviations & Acronyms

A   B   C   D   E   F   G   H   I   J   K   L   M   N   O   P   Q   R   S   T   U   V   W   X   Y  Z

A

Aframax:

A tanker of the largest size in the AFRA Freight Rate Assessment Scale Large One Category which includes vessels in the order of 80,000 - 100,000 DWT with typical load capacities of 600,000 barrels of crude oil.

Authorised Person:

Under section 4 of the Merchant Shipping Law (2005 Revision), the individual authorised is required to sign and make a declaration of eligibility, whether for himself or on behalf of a body corporate, that he or the body corporate is in fact qualified to be registered as owner of a Cayman Islands ship. The Authorised Person may also sign other forms and provide supporting documentation on behalf of the owner, as may be required from time to time. See also Representative Person.

B

Ballast Voyage:

A voyage that takes place between ports of discharge and loading ports where the vessel is carrying no cargo and hence takes on ballast (usually water) to make the vessel more manageable at sea.

Bareboat Charter:

A private agreement between two parties, individual or body corporate whereby the ship-owner leases an entire ship to the charterer for a particular reason (e.g. conveyance of goods). The ship-owner effectively gives the whole possession, operation and control of the ship over to the charterer. The charterer then becomes for the time the owner of the vessel allowing him to register with a flag state of his choice. Also see Demise Charter.

Bill of Sale:

A contract for the sale of a vessel which includes the vessel’s description, sales price, buyer's name, original signature of seller, and date.

BIMCO:

The Baltic and International Maritime Council is a private organisation representing members’ interests in maritime affairs and free trade. Membership consists of ship-owners, shipbrokers and P&I Clubs representing more than 65% of the world’s ocean-going dry-cargo and tanker fleet.

Builder's Certificate:

A certificate signed by the builder of a ship and containing a true account of the particulars of the ship, as estimated by him, and of the date and place where it was built, and of the name of the person, if any, for whom the ship was built, or the name of the person to whom it was delivered.

Bulk Carrier:

A vessel with no tween-deck used for bulk transport of everything stowed in bulk without packaging such as grain, coal, ore, sugar, cement, etc.

C

Capesize:

A parameter used to determine popular bulk carrier sizes and that governs the design of very large ships built to serve deepwater terminals handling raw materials, such as iron ore, particularly from Brazil. These vessels are too big for the Panama or Suez canals and, as an alternative, voyage via Cape Horn or the Cape of Good Hope.

Certificate of Good Standing:

A certificate issued by a Companies Registry attesting to the fact that a company is in good standing and that it has filed all the necessary returns and fees.

Certificate of Survey:

This Certificate is not strictly speaking a “survey” document but it contains the tonnage and other particulars of the vessel which will be entered in the Register therefore registration cannot normally proceed without it.

Charterer:

A person or firm who enters into a contract with a ship-owner for the transportation of cargo or passengers for a stipulated period of time. Also includes a bareboat or demise charterer. See also Demise Charter and Bareboat Charter.

Charterparty:

A contract or agreement by which a ship-owner agrees to lease, and a charterer agrees to hire, an entire ship, or all or part of the cargo space to carry cargo for an agreed sum under certain conditions.

CISR VOE:

A subscriber utilised web-based client service system that allows the subscriber to access survey and audit, crew compliance, registration and financial information for his vessels from a remote location. Also allows the purchase of items such as logs, flags, and Merchant Shipping Laws, and to conduct other business online. The CISR VOE is being implemented in 3 phases, the first of which will go online on June 5, 2006 with the remaining 2 phases due for implementation before December 31, 2006.

COLREG:

Convention on International Regulations for Preventing Collisions at Sea.

D

Demise Charter:

Also called a bareboat charter in which the bare ship is chartered without crew with the charterer, for a stipulated sum, taking over the vessel with a minimum of restrictions. See also Bareboat Charter.

Documentation Agency:

A firm that provides assistance to an owner or an owner’s representative in respect to the gathering and submission of all supporting documentation and necessary forms to register a vessel and to maintain its registration.

DWT:

Deadweight tonnes is a measure of the total weight that a vessel can carry when loaded down to its marks, including the weight of cargo, fuel, stores, water ballast, fresh water, crew, passengers and baggage. See also GT.

E

Encumbrance: :

A claim or liability attached to a vessel that might lessen its value, such as a mortgage or a tax lien. Once registered, encumbrances stay with a vessel even after it has transferred to another unless these have been discharged by the party that attached it in the first instance or by a Court Order.

EPIRB:

Through the use of satellites, an Emergency Position Indicating Radio Beacon is meant to help rescuers locate marine vessels in an emergency situation. These satellite-linked EPIRBs broadcast a unique, repeating distress signal that can be detected from virtually any point on earth. When properly registered, the signal includes a description of the vessel as well as its location. An activated EPIRB will send critical information via satellite that is routed directly to rescue units thereby reducing search time dramatically. See also MMSI.

Equasis:

A web-based information system that collates existing safety-related information on ships from both public and private sources, jointly developed by the European Commission and the French Maritime Administration.

F

Flag State:

The common legal understanding of ‘flag state’ is the administration or the government of the State whose flag a ship is entitled to fly.

FPSO:

Floating Production Storage Offshore Loading vessel.

G

GMDSS:

Global Maritime Distress and Safety System developed by the IMO and comprising a number of key elements including: Call Sign (a unique identifier of a radio station); Maritime Mobile Service Identity (MMSI) (a nine digit which is transmitted over the radio path in order to uniquely identify ship stations, ship earth stations, coast stations, coast earth stations and group calls); Selective Call Number (a unique numeric identifier of a ship or coast station in the maritime mobile service for simplex teletype over radio); Mobile Earth Station Identification Number (MESIN) (a unique numeric identifier of an INMARSAT-C, INMARSAT-M, INMARSAT-B and all new INMARSAT ship earth station); Ship Earth Station Identity Number (a unique numeric identifier of an INMARSAT-A ship earth station); Ship Station Identity (a unique numeric identifier of an INMARSAT-E EPIRB); and 406 MHZ EPIRB Unique Identifier Number (a unique alphanumeric identifier of a 406 MHZ satellite EPIRB).

GT:

Gross tonnage is the total volume of all enclosed spaces of a ship usable for carrying cargo or passengers measured in cubic metres using a standard formula under the International Tonnage Convention for vessels 24 metres and above or under national regulations for ships under 24 metres in length. See also DWT.

H

Handymax:

An inexact term, but normally taken to mean a bulk carrier of about 43,000-55,000 DWT. A super Handymax is about 50,000-60,000 DWT.

Handysize:

An inexact term, but normally taken to mean a bulk carrier of about 20,000 to 35,000 DWT.

I

IACS:

International Association of Classification Societies is an association of 11 classification societies. These Societies establish and apply technical requirements for the design, construction and survey of marine-related facilities, principally ships and offshore structures. These requirements are published as classification rules. Classification rules are developed to contribute to the structural strength and integrity of essential parts of the ship’s hull, and its appendages, and the reliability and the function of the propulsion and steering systems, power generation and those other features and auxiliary systems which have been built into the ship in order to maintain essential services on board for the purpose of safe operation of the ship. Classification surveys are carried out by qualified surveyors using mainly visual inspection and sampling techniques. Classification societies may also act as Recognised Organisations for Flag States, verifying the same vessel’s compliance with international and/or national statutory regulations.

ICCL:

The International Council of Cruise Lines is a trade organisation whose mission is to participate in the global regulatory and policy development process to ensure a safe, secure and healthy cruise ship environment.

ICS:

The International Chamber of Shipping is the international trade association for merchant ship operators and represents the collective views of the industry from different nations, sectors and trades.

ILO:

The International Labour Organisation is the United Nation’s specialised agency which formulates international labour standards in the form of Conventions and Recommendations setting minimum standards of basic labour rights.

IMO:

The International Maritime Organization is the United Nation’s specialised agency that is responsible for prescribing international standards for safety of life at sea, marine security and protection of the marine environment.

INMARSAT:

The International Maritime Satellite organisation operates a constellation of geostationary satellites that extend mobile phone, fax and data communications to every part of the world, except the poles. INMARSAT provides telephony and data services to users world-wide, via special digital radios called "terminals". An INMARSAT terminal contacts the satellite and communicates to a ground station through the satellite. Ship-owners and managers, connected to an INMARSAT satellite, can dial into the international telephone network and send data over the internet.

INTERCARGO:

The International Association of Dry Cargo Ship-owners represents the interests of owners, operators and managers of dry cargo shipping and works closely with the other international associations to promote a safe, high quality, efficient and profitable industry.

Interim Certificate of Registry:

Issued where there exists a “transfer of ownership” request with Cayman for a vessel that is not on its Register and negotiations and/or paperwork and the like are not yet concluded between the buyer and seller but the buyer (expected owner) is eligible to qualify and intends to register the vessel in Cayman.

INTERTANKO:

The International Association of Independent Tanker Owners is a forum where the industry meets, policies are discussed and statements are created to represent the interests of independent tanker owners and operators of oil and chemical tankers.

ISF:

The International Shipping Federation is an international employers' organisation dedicated to maritime manpower issues, providing advice and guidance to members on industrial relations issues.

ISM Code:

The International Safety Management Code requires development and implementation of a safety management system which addresses all of a company’s activities onshore and on board its ships. The Code places the responsibility for the safety of ships and the prevention of pollution where it truly lies, within the company management structure. This means that the whole organisation is responsible for safety, not just the ship’s master or shore-based manager. This code is mandatory and falls under SOLAS Chapter IX.

ISPS Code:

The International Ship and Port Facility Security Code is a comprehensive set of measures designed to enhance the security of ships and port facilities, developed in response to the perceived threats to ships and port facilities in the wake of the 9/11 attacks. The ISPS Code is given force through Chapter XI-2 of SOLAS. The Code has two parts, one mandatory and one recommended. In essence, the Code takes the approach that ensuring the security of ships and port facilities is a risk management activity and that, to determine what security measures are appropriate, an assessment of the risks must be made in each particular case. The purpose of the Code is to provide a standardised, consistent framework for evaluating risk, enabling governments to offset changes in threat with changes in vulnerability for ships and port facilities through determination and implementation of appropriate security levels and corresponding security measures.

ITF:

The International Transport Workers' Federation represents transport workers worldwide and promotes their main interests (working conditions, remuneration and benefits) through global campaigning and solidarity. The ITF is one of the world's oldest and largest labour unions. Created in 1896, the federation now represents more than 5 million workers in 137 countries. For 50 years, it has campaigned against the so-labeled “flags of convenience” system.

L

Load Line:

A physical marking on a ship’s hull indicating the maximum depth to which a ship is entitled to be loaded in a particular circumstance. The international standard for determining load lines is set by the Load Line Convention 1966, as amended. This ensures a minimum of buoyancy above the water line.

M

MACI:

MACI is a statutory corporation formed as a separate legal entity under the Maritime Authority of the Cayman Islands Law (2005) which came into effect on July 1, 2005. MACI is wholly-owned by the Government of the Cayman Islands but governed by a Board of Directors

Manager (Ship):

Typically a third party that provides a complete range of integrated marine services on behalf of an owner or operator.

MARPOL:

The International Convention for the Prevention of Pollution of Ships, 1973 as modified by the 1978 Protocol is the main international convention covering prevention of pollution of the marine environment by ships from operational or accidental causes and governs the design and equipment of ships; establishes system of certificates and inspections; requires states to provide reception facilities for the disposal of oily waste and chemicals. It combines two treaties adopted in 1973 and 1978 respectively and updated by amendments through the years. MARPOL currently includes 6 technical Annexes dealing with oil, noxious liquid substances, harmful substances, sewage, garbage, and air pollution, respectively.

Memorandum and Articles of Association (or Bylaws):

These are the governing documents of a company and must be filed on incorporation with the Companies Registry. They set out in detail the rights of the members, objectives of the company, share capital of the company, voting rights, classes of shares, procedures at directors and members meetings and various other issues regards the running of the company.

MMSI:

Maritime Mobile Service Identity is a unique 9 digit number that is assigned to a ship’s radio station. This radio technology allows enhanced distress radio messages to be sent digitally. It primarily registers the ship’s information in national distress databases worldwide for use in emergency situations. See also EPIRB.

MOU on PSC:

Memorandum of Understanding between coastal states on Port State Control for compliance with international maritime Conventions. See also PSC.

Mortgagee (Ship):

A party that lends money.

Mortgagor (Ship):

A party that borrows money.

O

OECD:

The Organisation for Economic Co-operation and Development is a forum where the governments of 30 market democracies work together to address the economic, social and governance challenges of globalisation as well as to exploit its opportunities. The Organisation provides a setting where governments can compare policy experiences, seek answers to common problems, and identify good practice andco-ordinate domestic and international policies. It is a forum where peer pressure can act as a powerful incentive to improve policy and implement “soft law” – non-binding instruments such as the OECD Corporate Governance Principle– and on occasion leads to formal agreements for treaties. The various exchanges among OECD governments come from information and analysis provided by a Secretariat that is located in Paris, France. The Secretariat collects data, monitors trends, and analyses and forecasts economic developments. It also researches social changes or evolving patterns in trade, environment, agriculture, technology, taxation and more.

Operator (Ship):

An owner or operator of ships that enters into a contract with a shipper for the transportation of goods.

Owner (Ship):

The registered owner of a vessel who can charter the vessel out to others.

P

Panamax:

The largest ship size that is allowed to transit the Panama Canal. Ships' lengths are restricted to 275 metres, maximum permitted width is slightly more than 32 metres, and maximum permitted fresh water draught is 12 metres. This ship size is about 60,000-80,000 DWT.

Power of Attorney:

A Power of Attorney is a document that gives someone else the authority to act on your behalf on matters that you specify. The power can be specific to a certain task or broad to cover many financial duties.

PSC:

Flag States are responsible for ensuring that ships under their flag comply with their requirements, and a number of certificates are prescribed in the SOLAS Convention and other Conventions as proof of compliance. Port State Control provisions also allow Contracting Governments to inspect the ships and equipment of other Contracting States for compliance with the requirements of the Convention - this procedure is known as Port State Control. See also MOU.

R

Red Ensign Group (REG):

Includes the 5 Category 1 British Registers (UK, Bermuda, Cayman, Gibraltar and Isle of Man) and the 8 Category 2 British Registers (Anguilla, British Virgin Islands, Falkland Islands, Guernsey, Jersey, Montserrat, St. Helena and Turks and Caicos Islands). The Category 1 Registries may register vessels of any size, type or age whilst the Category 2 Registries are restricted to registering vessels up 150 GT (the British Virgin Islands can register cargo vessels up to 150 gross tones and yachts up to 500 gross tones). The REG meets annually in one of the member countries.

Reefer:

A container carrying vessel specially constructed to carry refrigerated cargo.

Representative Person:

Under section 5 of the Merchant Shipping Law (2005 Revision) a ship owned by a non-resident individual or company may only be registered if a Representative Person is appointed locally for the purpose of receiving notices and other documents pertaining to the non-resident ship-owner. A non-resident company is defined as a company that is not incorporated locally and does not having a place of business in the Cayman Islands. See also Authorised Person.

Ro-Ro (Roll On - Roll Off):

A ship that is constructed to allow cargo to be driven directly on and off board using trucks, forklifts and other equipment.

S

Shipping Master:

The post of Shipping Master is a statutory post under the Cayman Islands Merchant Shipping Law. He has to administer the provisions of the Law relating to areas such as superintendence and facilitation of the engagement and discharge of crew, payment of wages and other emoluments to seamen, to their families, treatment of distressed seamen, enquiries into the disputes of seamen and ship-owners relating to service conditions, wages, and the recording of birth and deaths occurring on ships and, where necessary, enquiries in such matters.

SOLAS:

The International Convention for the Safety of Life at Sea, 1974 as amended specifies minimum standards for the design, construction, equipping and operation of ships, in respect of their safety.

SPC:

Segregated Portfolio Company. Section 232 of the Companies Law (2004 Revision) enables a Company, as a single legal entity, to segregate assets and liabilities between segregated portfolios (SP) established within the Company. Although each segregated portfolio must be separately identified they are not separate legal entities apart from the Company. The Cayman Islands law provides that assets and liabilities of each portfolio are legally separate from those of another SP. Therefore, creditors of an SP have recourse to the assets of that particular SP, and to any general assets of the Company (being assets not belonging to any particular SP) exceeding the Company’s minimum capital requirements, if the assets of that particular SP are insufficient to meet the creditor’s claim.

SPV:

Special Purpose Vehicles, also known as "bankruptcy-remote entity" or “special purpose entity” is a legal entity created by a firm (known as the sponsor/originator) by transferring assets to the SPV to carry out a specific purpose or circumscribed activity, or a series of such transactions. Operations are therefore limited to the acquisition and financing of specific assets. SPVs can make no substantive decisions and have no physical location. The SPV is usually a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company goes bankrupt.

STCW:

International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, 1978 as amended.

Suezmax:

Vessels of about 120,000-150,000 DWT. Typically includes vessels with load capacities of 1 million barrels of crude oil. Also the maximum ship size that is allowed to transit the Suez Canal fully loaded.

Superyachts:

Larger pleasure yachts, usually defined as in excess of 24 metres in length. Other terms that are used to describe larger pleasure yachts include mega-yacht and giga-yacht.

T

Tonnage Certificate:

A certificate stating the size of a vessel expressed in tons; not necessarily based on weight. “National Tonnage Certificates” are issued to vessels under 24 metres and “International Tonnage Certificates” are issued to vessels 24 metres and over.

U

ULCC:

“Ultra large crude carriers” of about 300,000 - 550,000 DWT. Typically used for carrying crude oil on long-haul routes from the Arabian Gulf to Europe, America and the Far East via the Cape of Good Hope, normally discharging at custom-built terminals.

V

VLCC:

“Very large crude carriers” of about 200,000 - 299,999 DWT. These ships operate on similar routes to ULCCs but with greater flexibility in discharge port options owing to their smaller size and for this reason they are also employed at ex Mediterranean, West African and even North Sea Terminals. They can be ballasted through the Suez Canal (i.e., transit the Canal without cargo).