MANAGEMENT OF TRANSPORTATION

1
MARITIME TRANSPORTATION
2
MARITIME TRANSPORTATION

• The first modern energy conversion in marine
  transportation was the shift from sail to
  combustion (Shift of human labor (oars) to
  wind-driven sail).
• The conversion of fleet tonnage to the preferred
  technology ships powered by coal-fired boilers
  that provided steam first to reciprocating steam
  engines and later to high-speed steam turbines
  that drove the propeller(s).
• Later, the first alternative fuel petroleum oil
  enabled the introduction of modern marine
  engines.

3
MARITIME TRANSPORTATION

• Globalization motivations to reduce the per-unit
  cost of shipping were the primary purpose for
  this conversion to alternative fuel in the
  early 1900s, rather than energy conservation or
  even fuel cost savings.
• Oil-powered commercial ships required fewer crew
  and enjoyed a greater range of operations between
  fueling.
• Oil powered ships also accelerated more quickly
  than coal-powered systems, and could achieve
  higher speeds.

4
Development of marine transport technology 5000
BC to the present
5
Maritime Transportation and the Global Economy

• The core of global freight distribution in terms
  of its unparallel physical capacity
• Ability to carry freight over long distances and
  at low costs.
• An industry that was always international in its
  character.
• Become a truly global entity with routes that
  spans across hemispheres, forwarding raw
  materials, parts and finished goods.

6

• A Greek owned vessel, built in Korea, may be
  chartered to a Danish operator, who employs
  Philippine seafarers via a Cypriot crewing agent,
  is registered in Panama, insured in the UK, and
  transports German made cargo in the name of a
  Swiss freight forwarder from a Dutch port to
  Argentina, through terminals that are
  concessioned to port operators from Hong Kong and
  Australia (Kumar and Hoffmann, 2002, p. 36)

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The Containerization of Maritime Transportation

• The maritime industry has been transformed by
  more than 50 years of containerization.
• First containerized maritime shipment set sail
  from Port Newark, New Jersey in 1956.
• Maritime transportation was the first mode to
  pursue containerization.
• Containerization permits the mechanized handling
  of cargoes of diverse types and dimensions that
  are placed into boxes of standard size.
• Labor intensive transshipment activities becomes
  standardized with time consuming and costly
  stevedoring reduced.

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The Containerization of Maritime Transportation

• Containerization has been brought about in part
  by technology and has substantially impacted
  maritime design with the creation of the
  containership.
• While the first containerships were converted
  cargo vessels, by the late 1960s the
  containerized market has grown enough to justify
  the creation of ships entirely designed for such
  a purpose.
• The construction of containerships has followed
  incremental improvements in design with economies
  of scale being the main rationale the larger the
  ship, the cheaper the transport costs per TEU.

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The Containerization of Maritime Transportation

• In a globalized economy, containerization offers
  the advantage of integrated freight
  transportation across all modes.
• Standardized the shipping package, reducing the
  per-unit cost of transporting most finished
  goods.
• Container shipping represents significant
  increase in global transport of finished and
  semi-finished products from regions with
  inexpensive skilled labor to consumer markets.

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• Intermodal transport has become a global
  phenomenon as mechanized handling and
  containerization have reduced handling costs
  between modes and promoted their efficiency.
• Ports have become elements in global commodity
  chains controlled by logistics companies,
  maritime shipping lines, freight forwarders and
  transport operators.
• Ports strategies and the allocation of their
  assets have shaped the structure of maritime
  transport networks in terms of ports of call,
  hierarchy and frequency of services.
• Post-Panamax container ships encourage pendulum
  services and the setting of high capacity inland
  corridors.

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BASIC TERMS DEFINITIONS

• Aframax. All vessels designed for the carriage of
  liquid bulk cargoes 80,000 - 119,999 dwt,
  including oil and products, chemical and other
  specialised.
• ALONGSIDE. A phrase referring to the side of a
  ship.
• Anchor Handling Tug (AHT). Tug designed for
  offshore rig anchor-handling.
• AIR DRAFT This term has various meanings the most
  common being The maximum height from the water
  line to the top-most point of a ship.
• Bareboat charter. A bareboat charter involves the
  use of a vessel usually over longer periods of
  time ranging over several years. In this case,
  all voyage related costs, mainly vessel fuel and
  port dues, as well as all vessel-operating
  expenses, such as day-to-day operations,
  maintenance, crewing and insurance, are for the
  charterers account. The owner of the vessel
  receives monthly charter hire payments on a U.S.
  dollar per day basis and is responsible only for
  the payment of capital costs related to the
  vessel. A bareboat charter is also known as a
  demise charter or a time charter by demise.

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BASIC TERMS DEFINITIONS

• BACK FREIGHT freight charged for the return of
  goods which have not been accepted at the port of
  destination. Also applied to goods discharged at
  another convenient port.
• BALE CAPACITY The cubic capacity of a ship's
  holds below deck, expressed in cubic feet or
  cubic metres, available for the carriage of
  breakbulk type of cargoes, e.g.., packages,
  bales, cartons, cartons, drums, pallets, etc.,
  which are not capable of filling the space
  between the ship's frames.
• BALLAST Heavy weight, often sea water, necessary
  for the stability and safety of a ship which is
  not carrying cargo.
• BALLAST BONUS Sum of money paid by a time
  charterer to a shipowner (in a good market) to
  compensate him for not finding a cargo near the
  place of re- delivery of the ship at the end of
  the charter. The bonus serves as an incentive for
  the ballast (empty) trip to cover up the cost of
  fuel and time. At times a shipowner pay pat the
  charterer a ballast bonus when the vessel is
  being re- delivered at the end of time charter,
  specially when market is not good for the
  shipowner.

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BASIC TERMS DEFINITIONS

• BAR DRAFT This relates to the maximum draft
  enabling a vessel to pass over a bar, e.g.,
  Martin Garcia bar in the River Plate. In case the
  vessel has too great a draft, it will have to
  discharge part of the cargo into barges and then
  reload it after passing the bar. A similar
  situation exists at Yangon (formerly Rangoon).
  Such ports are called bar-ports.
• BEFORE BREAKING BULK Refers to the time when
  freight is paid. In this case freight is to be
  paid any time before commencement of discharge.
• BELOW BRIDGES If a ship has to pass under a
  bridge across a canal to reach the port or berth
  it has to ensure that its draft permits the
  vessel to have sufficient clearance above its
  highest point to pass under the bridge with ease.
  
• BENEFICIARY BERTH The person in whose favor a
  draft is issued or a letter of credit opened. The
  specific place where ships are anchored for
  loading and/or discharging at the docks in a
  port.

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BASIC TERMS DEFINITIONS

• BERTH CHARTER If a vessel chartered for loading
  on a particular berth, the contract is called
  berth charter. The term berth charter implies
  that notice of readiness cannot be given until
  the vessel is in the designated berth as required
  by the charterers.
• BERTH TERMS Also referred to as quotliner
  termsquot. The Shipowner pays for loading and
  discharging subject to the custom of the port or
  as fast as the ship can handle the cargo or under
  customary dispatch.
• BILL OF LADING The document issued on behalf of
  the carrier describing the kind and quantity of
  goods being shipped, the shipper, the consignee,
  the ports of loading and discharge and the
  carrying vessel. It serves as a document of
  title, a contract of carriage, and a receipt for
  goods.
• BIMCO (The Baltic and International Maritime
  Council). The largest of the international
  shipping associations representing shipowners it
  controls around 65 percent of the worlds tonnage
  and it has members in more than 120 countries,
  including managers, brokers and agents.

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BASIC TERMS DEFINITIONS

• BLACK LIST List of countries published by a
  government which will not allow ships to trade at
  its ports if they have traded at ports in the
  countries on that list.
• BOTH ENDS The term means that the arrangements
  agreed upon hold true both at loading and
  discharging ports, e.g., rate of loading and
  discharging appointment of agents, etc.
• Boxship. Containership.
• BREAK BULK Loose cargo, such as cartons, stowed
  directly in the ship's hold as opposed to
  containerized or bulk cargo. See
  quotContainerization.quot
• BREAKBULK Describes loose cargo, such as cartons,
  bales, boxes, packages, etc stowed directly in
  the ship's hold as opposed to containerised or
  bulk cargo.
• BREAKING BULK The expression means quotto start
  the discharge.quot
• BROKEN STOWAGE The space wasted in a ship's holds
  when stowing general cargo which is uneven and
  packed.

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BASIC TERMS DEFINITIONS

• BROKER (SHIP). A shipbroker acts as a middleman
  between the shipowner and the charterer and
  negotiates the terms of a C/P. He represents one
  party (say, shipowner) and negotiates with the
  other party (charterer) directly or with another
  broker who represents the charterer. (A sale and
  purchase broker negotiates for the sale of a ship
  and represents the shipowner).
• BROKERAGE. Brokerage is a commission paid to the
  shipbroker by the shipowner for the broker's
  time, effort and expenses in concluding a
  (successful) fixture, normally a certain
  percentage of the hire of freight earned by the
  shipowner.
• Bulk cargo. Oil and products tanker, bulkcarrierm
  combined ore/oil or bulk/oil carrier.
• 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, rice,
  vegetable oil, tallow, fuel oil, fertilizers, and
  similar commodities.

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BASIC TERMS DEFINITIONS

• BUNDLING. This is the assembly of pieces of
  cargo, secured into one manageable unit. This is
  relevant to items such as Structural Steel,
  Handrails, Stairways etc. Whilst this is a very
  flexible description, a rule of thumb is to
  present cargo at a size easily handled by a large
  (20 tonne) fork lift truck.
• BUNKER ADJUSTMENT FACTOR(BAF). A Fuel Surcharge
  expressed as a percentage added or subtracted
  from the freight amount, reflecting the movement
  in the market place price for bunkers.
• Bunkers. Fuel, consisting of fuel oil and diesel,
  burned in a vessels engines. (Originates from
  coal bunkers)
• Capesize. A drybulk carrier with a cargo-carrying
  capacity exceeding 100,000 dwt. These vessels
  generally operate along long-haul iron ore and
  coal trade routes.
• CARGO. Goods, merchandise or commodities of every
  description which may be carried aboard a vessel,
  in consideration of the freight charged does not
  include provisions and stores for use on board.

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BASIC TERMS DEFINITIONS

• CERTIFICATE OF INSPECTION A document often
  required with shipments of perishable or other
  goods, when certification notes the good
  condition of the merchandise immediately prior to
  shipment.
• CERTIFICATE OF MANUFACTURE A statement sometimes
  notarized by a producer, usually also the seller,
  or merchandiser that indicates the goods have
  been manufactured and are at the disposal of the
  buyer.
• CERTIFICATE OF ORIGIN A specified document,
  required by certain foreign countries for tariff
  purposes, certifying the country of origin of the
  merchandise. Sometimes requires the signature of
  the consul of the country to which it is
  destined.
• CHART DATUM Water level calculated on the lowest
  tide that can ever occur and used as a basis for
  chart measurements.
• Charter. The hire of a vessel for the
  transportation of a cargo. The contract for a
  charter is commonly called a charterparty(c/p).
• Charterer. The party that hires a vessel under
  the charterparty.

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BASIC TERMS DEFINITIONS

• Charter-in. A lease of a vessel by which the
  owners of a vessel sublet or let the entire
  vessel, or some principal part of the vessel, to
  another party that uses the vessel for its own
  account under its charge.
• Charter owner. Owners of containerships that
  charter vessels to shipping service operators,
  known as liner companies, rather than directly
  operating container shipping services for
  shippers.
• CHARTER PARTY(C/P) A written contract between
  the owner of a vessel and the one (the charterer)
  desiring to empty the vessel, setting forth the
  terms of the arrangement, i.e., freight rate and
  ports involved in the contemplated trip.
• Classification society. An independent society
  that certifies that a vessel has been built and
  maintained according to the societys rules for
  that type of vessel and complies with the
  applicable rules and regulations of the country
  of the vessels registry and the international
  conventions of which that country is a signatory.
  A vessel that receives its certification is
  referred to as being in-class. A vessel may be
  classified by more than one class at any one time.

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BASIC TERMS DEFINITIONS

• Combined carrier. Combined carriers, also known
  as Combos, are vessel which can carry either a
  full load of dry or liquid bulk (usually oil).
  Some Combos have reinforced hulls so that they
  are able to carry extremely dense iron ore.
  Theoretically, this ability to carry both liquid
  and dry cargoes enables owners to switch between
  the dry and wet markets, optimising profits when
  one market is poor.
• Compensated Gross Tonnage (CGT). This measures
  the level of shipbuilding output, taking account
  of the work content of the ship. Shipbuilding
  output was based solely on the carrying capacity
  a vessel, and therefore output was seen to be
  higher on a large tanker than a smaller passenger
  ferry. They had become unreliable, and so the
  Compensated Gross Tonnage unit was devised, a
  formula that was more accurate and reliable than
  the old, and takes into account the influence of
  both the ship type and size, as well as the
  ships' Gross Tonnage.

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BASIC TERMS DEFINITIONS

• Cubic Feet (Cu. Ft). Cubic feet is the older
  version of cubic metres, and because of
  precedence, it is only really used in long
  established reefer market. The largest cargo for
  the reefer market is food, particularly fruit
  such as bananas. Such cargo has a light density,
  and therefore uses a measurement of size rather
  than weight in describing the carrying capacity
  of the vessel.
• Cubic Meters (CBM,Cu.M). Cubic metres are another
  measure of the amount of cargo that a vessel can
  carry, but in terms of the cargos volume rather
  than weight. CBM is mostly used for vessels
  carrying light density material including LPG and
  LNG, where size rather than carrying capacity
  will become the limiting factor on how much cargo
  can be carried.

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BASIC TERMS DEFINITIONS

• Deadweight ton or dwt. A unit of a vessels
  carrying capacity, including cargo, fuel, oil,
  water, stores and crew measured in metric tons
  of 1,000 kilograms.
• Dredgers. A vessel equipped for the removal of
  sand or sediment from the seabed. The main types
  of specialised dredgers are backhoe/dipper/grab,
  cutter suction/bucket wheel and trailing suction
  hopper.
• Drill Ship As semi-sub, but greater capacity and
  mobility makes drillships well suited to offshore
  drilling in remote areas (operates in depths up
  to 3,650 metres).
• Drybulk. Non-liquid cargoes of commodities
  shipped in an unpackaged state, such as coal,
  iron ore and grain, etc. that is loaded in bulk
  and not in bags, packages or containers.

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BASIC TERMS DEFINITIONS

• Drybulk carriers. Vessels designed and built to
  carry large volume bulk cargo.
• Feeder. A vessel which is part of a cargo network
  in which the larger, faster vessels only call at
  the major ports at both ends of the area being
  covered and the smaller ports are served by the
  smaller feeder vessels which transfer the cargo
  to and from the major port terminals. This
  process keeps the larger vessels filled closer to
  capacity and spares them the expense and loss of
  time loading and unloading cargo in the smaller
  ports.
• FEU.Fourty-foot Equivalent Unit
• Fixture. A shipping industry term used to denote
  the agreement of a new charter.
• Flag state. The country where a vessel is
  registered.

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BASIC TERMS DEFINITIONS

• Freight. A sum of money paid to the shipowner by
  the charterer under a voyage charter, usually
  calculated either per ton loaded or as a lump-sum
  amount.
• Fully cellular containership. A vessel
  specifically designed to carry ISO standard
  containers, with cell-guides under deck and
  necessary fittings and equipment on deck.
• Gear. On-board equipment used to load and unload
  vessels, a vessel can be geared or gearless.
• General cargo ship. This older type of cargo ship
  generally has tween decks for mixed general
  cargo, tanks for liquid cargo, and maybe some
  refrigerated capacity. Also has deep holds for
  bulk cargo. Usually the hatch openings are too
  small for below deck container stowage, but
  containers can be stacked on the deck. The
  general cargo ship often has its own cranes and
  derricks for loading and discharging cargo.

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BASIC TERMS DEFINITIONS

• Gross ton. A unit of measurement of the volume of
  all ship's enclosed spaces measured to the
  outside of the hull framing. One gross ton is
  equal to 100 cubic feet or 2.831 cubic meters.
• Handy. An Intermediate fully cellular
  containership with a TEU capacity between 1,000
  TEU and 1,999 TEU.
• Handymax. Handymax vessels are drybulk vessels
  that have a cargo carrying capacity of
  approximately 40,000 to 59,999 dwt. These vessels
  operate on a large number of geographically
  dispersed global trade routes, carrying primarily
  grains and minor bulks. Vessels below 60,000 dwt
  are usually built with on-board cranes enabling
  them to load and discharge cargo in countries and
  ports with limited infrastructure.

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BASIC TERMS DEFINITIONS

• Handysize. Handysize (drybulk) vessels have a
  cargo carrying capacity of approximately 10,000
  to 39,999 dwt. These vessels carry generally
  minor bulk cargo. Handysize vessels are well
  suited for small ports with length and draft
  restrictions that may lack the infrastructure for
  cargo loading and unloading.
• Handysize. (Tanker) All vessels designed for the
  carriage of liquid bulk cargoes 30,000 - 59,999
  dwt, including oil and products, chemical and
  other specialised.
• Hull. Shell or body of a ship.
• IMAREX. International Maritime Exchange
• IMO. International Maritime Organization, a U.N.
  agency that establishes international standards
  for shipping.

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BASIC TERMS DEFINITIONS

• IMO (I,II or III) chemical tanker. Vessels
  designed to IMO Class I, II or III specifications
  respectively.
• Intermediate. Containership category of vessels
  between 1,000 TEU and 2,999 TEU, generally
  serving intermediate, northsouth and in some
  cases inter-regional trades.
• Jack Up. A self-elevating drilling platform whose
  legs rest on the sea bed when drilling. These are
  limited to shallow waters (operates in depths up
  to 150 metres).
• Lay up Temporary cessation of trading of a ship
  by a shipowner, usually during a period when
  there is a surplus of ships in relation to the
  level of available cargoes.
• Lightweight ton or LWT. The actual weight of a
  vessel without cargo, fuel or stores. A vessels
  lightweight is the physical weight of the vessel
  and represents the amount of steel recoverable in
  the vessel. The value of a vessel to a breaker is
  determined by multiplying the vessels
  lightweight by the price of scrap steel.

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BASIC TERMS DEFINITIONS

• Liner company. A company that operates ocean
  carriers that carry many different cargoes on the
  same voyage on regular schedules (generally in
  containers).
• Liquefied Natural Gas (LNG). Methane cooled to
  162 0C, at which temperature it can then be
  stored and transported in cryogenic tanks.
• Liquefied Petroleum Gas (LPG). The liquid form of
  the commercial gases propane and butane.
• MARPOL. The International Convention for the
  Prevention of Pollution from Ships.

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BASIC TERMS DEFINITIONS

• Multipurpose ship/vessel or MPV. A newer version
  of general cargo ship with holds designed for
  container stowage. The holds generally have tween
  decks and containers can be stacked and lashed
  onto the hatch covers. The MPV is still capable
  of carrying breakbulk cargoes, and bulk cargoes.
  Some are also equipped with tanks for liquid
  cargoes. It generally also has its own cranes and
  derricks, sometimes with heavy lift capability.
• Newbuilding. A new vessel under construction or
  just completed.
• Non-delivery. Non-deliveries are the vessels that
  were scheduled to be delivered according to the
  start of year orderbook, but due to delays,
  cancellation, re-negotiations of contracts and
  new market information have not yet entered the
  fleet.
• Open Hatch Bulker. Bulkers gt 10,000 dwt having a
  hatch width which is 75 or greater than the
  extreme breadth of the ship.

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BASIC TERMS DEFINITIONS

• Orderbook. A reference to outstanding orders for
  the construction of vessels.
• Panamax (Containership). A vessel 3,000 TEU and
  above, capable of transiting the Panama Canal.
• Panamax (Drybulk). Panamax vessels have a cargo
  carrying capacity of approximately 60,000 to
  99,999 dwt, and do not exceed the maximum length,
  depth and draft capable of passing fully loaded
  through the Panama Canal. Panamax drybulk
  carriers carry coal, grains, and, to a lesser
  extent, minor bulks, including steel products,
  forest products and fertilizers.
• Panamax (Tankers). All vessels designed for the
  carriage of liquid bulk cargoes 60,000 - 79,999
  dwt, including oil and products, chemical and
  other specialised cargoes.

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BASIC TERMS DEFINITIONS

• Platform Supply Vessel or PSV. Offshore supply
  vessel and/or pipe carrier generally of North Sea
  design.
• Post-Panamax. A vessel with a beam of more than
  32.3 meters that cannot transit the Panama Canal.
• Products Tanker. Pure Car Carrier or Tankers
  suitable for products trades 60,000 - 199,999
  dwt, inlcuding designated chemical tankers with
  highest IMO Grade 3 and coated product tankers.
• Pure Car Carrier or PCC. A vessel specifically
  designed for the transportation of vehicles.
• Ro-Ro (Roll-On Roll-Off vessels). These vessels
  are designed for wheeled or tracked cargo that
  can load itself onboard. Cargo generally drives
  onto the vessel through decks via ramps, rather
  than being lifted through hatches.
• Scrapping. The sale of a vessel as scrap metal.

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BASIC TERMS DEFINITIONS

• Shuttle Tankers. Specialised ships designed to
  transport crude oil and condensates from offshore
  oil field installations to onshore terminals and
  refineries. They are equipped with sophisticated
  loading systems and dynamic positioning systems.
• Spot charter. Generally refers to a voyage
  charter or a trip charter, which generally last
  from 10 days to three months. Under both types of
  spot charters, the shipowner would pay for vessel
  operating expenses, which include crew costs,
  provisions, deck and engine stores, lubricating
  oil, insurance, maintenance and repairs, and for
  commissions on gross revenues. The shipowner
  would also be responsible for each vessels
  intermediate and special survey costs.
• Spot market. The market for a vessel for single
  voyages.
• Sub-Panamax. An Intermediate fully cellular
  containership with a TEU capacity between 2,000
  TEU and 2,999 TEU.

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BASIC TERMS DEFINITIONS

• Suexmax. All vessels designed for the carriage of
  liquid bulk cargoes 120,000 - 199,999 dwt,
  including oil and products, chemical and other
  specialised.
• TEU. Twenty-foot equivalent unit, the
  international standard measure for containers and
  containership capacity.
• Time charter equivalent rate (TCE). A shipping
  industry performance measure used primarily to
  compare daily earnings generated by vessels on
  time charters with daily earnings generated by
  vessels on voyage charters, because charter hire
  rates for vessels on voyage charters are
  generally not expressed in per day amounts while
  charter hire rates for vessels on time charters
  generally are expressed in such amounts. TCE is
  expressed as per ship per day rate and is
  calculated as voyage and time charter revenues
  less voyage expenses during a period divided by
  the number of our operating days during the
  period, which is consistent with industry
  standards

34
BASIC TERMS DEFINITIONS

• Time charter. A charter under which the vessel
  owner is paid charter hire on a per-day basis for
  a specified period of time. Typically, the
  shipowner receives semi-monthly charter hire
  payments on a U.S. dollar per day basis and is
  responsible for providing the crew and paying
  vessel operating expenses while the charterer is
  responsible for paying the voyage expenses and
  additional voyage insurance. Under time charters,
  including trip time charters, the charterer pays
  voyage expenses such as port, canal and fuel
  costs and bunkers.
• Trip charter or short time charter. A time
  charter for a trip to carry a specific cargo from
  a delivery point via load and discharge ports to
  a redelivery point at a set daily rate.
• ULCC(Ultra Large Crude Carrier). Tankers above
  320,000 tonnes dwt.
• UNCTAD.United Nations Conference on Trade and
  Development

35
BASIC TERMS DEFINITIONS

• VLCC (Very Large Crude Carrier). All vessels
  designed for the carriage of liquid bulk cargoes
  gt200,000 dwt, including oil and products,
  chemical and other specialised cargoes.
• VLGC (Very Large Gas Carrier). LPG Carriers of
  60,000cbm and above. A significant number of LPG
  carriers are also able to transport ammonia and
  petrochemical gas cargoes, such as ethylene,
  propylene and butadiene.
• VLOC (Very Large Ore Carrier). Bulkcarriers with
  a capacity of gt 220,000dwt, specifically designed
  to carry very dense iron ore on the long haul
  voyages of Brazil and Australia to China.

36
BASIC TERMS DEFINITIONS

• Voyage charter. A voyage charter involves the
  carriage of a specific amount and type of cargo
  on a load port-to-discharge port basis, subject
  to various cargo handling terms. Most of these
  charters are of a single voyage nature, as
  trading patterns do not encourage round voyage
  trading. The owner of the vessel receives one
  payment derived by multiplying the tonnage of
  cargo loaded on board by the agreed upon freight
  rate expressed on a U.S. dollar per ton basis.
  The owner is responsible for the payment of all
  voyage and operating expenses, as well as the
  capital costs of the vessel.
• VLGC (Very Large Gas Carrier). LPG Carriers of
  60,000cbm and above. A significant number of LPG
  carriers are also able to transport ammonia and
  petrochemical gas cargoes, such as ethylene,
  propylene and butadiene.
• VLOC (Very Large Ore Carrier). Bulkcarriers with
  a capacity of gt 220,000dwt, specifically designed
  to carry very dense iron ore on the long haul
  voyages of Brazil and Australia to China.

37
BASIC TERMS DEFINITIONS

• WAR RISKS. Those risks related to two (or more)
  belligerents engaging in hostilities, whether or
  not there has been a formal declaration of war.
  Such risks are excluded by the F.C.S. (Free of
  Capture and Seizure) Warranty, but may be covered
  by a separate War Risk Policy, at an additional
  premium.
• WHARFAGE. A charge assessed by a pier or dock
  owner for handling incoming or outgoing cargo.
• WORLDSCALE. Scale by which tanker freight rates
  are quoted.