Glossary

B

Back Haul
Routes which run against the standard flow of traffic, i.e. loading in a port situated in what is usually a discharge area, and discharging in a port situated in what is usually a loading area
Ballast
The period of time during which a ship performs a voyage without cargo on board
Baltic Dry Index or BDI
The BDI is published every London working day by the Baltic Exchange, which collates information for Handysize, Supramax, Panamax and Capesize vessels to create this lead freight market indicator
Baltic Handysize Spot Index / BHSI
The BHSI is published every London working day by the Baltic Exchange, which collates information on fixtures for a number of routes in relation to a standard “28,000 dwt” vessel with four 30-ton cranes and a maximum age of 15 years. The index is also published on the basis of a Time Charter return, and is used to determine the value of the trading routes and settlement prices for FFAs
Baltic Supramax Index / BSI
The BSI is published every London working day by the Baltic Exchange, which collates information on fixtures for a number of routes in relation to a standard 58,000 dwt vessel (52,000 dwt prior to August 2015) with four30-ton cranes and grabs and a maximum age of 10 years. The index is also published on the basis of a Time Charter return, and is used to determine the value of the trading routes and settlement prices for FFAs.
Bareboat or Bareboat Charter
Charter contract for an agreed period of time during which the ship owner provides only the ship while the charterer provides the crew together with all stores and bunkers and pays all Vessel Operating Costs
Beam
The greatest width of a vessel
Board
The board of directors of the Company
Bulk or Dry bulk
An expression for bulk commodities, or Dry Cargo, referring to everything stowed in bulk without packaging
Bunker or Bunkers
Fuel, consisting of fuel oil and diesel, burned in the vessels’ engines

C

Capesize
Dry bulk carrier with a capacity of more than 100,000 dwt (usually 130,000 to 200,000 dwt) which, due to its size, must transit the Atlantic to the Pacific via Cape Horn or the Cape of Good Hope when loaded. Such large vessels are typically employed for long haul voyages in the coal and iron ore trades
Charter
A contract for the carriage of a volume of cargo from load port to discharge port or the commercial leasing of a vessel or space on a vessel
Charter-hire
The revenue earned by a vessel under a Bareboat Charter or a Time Charter (See “freight” for revenue earned under a Voyage Charter or Contract of Affreightment)
Charterer
A person or company hiring a vessel for the carriage of goods or other purposes
Classification societies
Independent societies which certify that a vessel has been built and is maintained in accordance with the rules of such society and in compliance with the applicable rules and regulations of the vessel’s Flag State and the international conventions of which that Flag State is a signatory
Commercial management
Management of those aspects of ship owning and operation that relate to obtaining economic value from the vessel which includes ship financing, sale and purchase, chartering or vessel employment, voyage execution, insurance and claims handling, accounting and corporate administration
Contract of Affreightment or COA
Similar to a Voyage Charter, but covers two or more shipments over an agreed period of time (over a number of months or years), and no particular named vessel is specified

D

Demurrage
An agreed amount payable to the ship owner by the Charterer if the agreed time allowed for loading or unloading cargo has been exceeded through no fault of the owner
Despatch
The reverse of Demurrage, Despatch is an agreed amount payable by the ship owner to the Charterer if loading or unloading cargo takes less time than the agreed time allowed for loading or unloading cargo. The agreed amount payable for Despatch is usually half that for Demurrage.
Draft
Vertical distance between the waterline and the bottom of the vessel’s keel (i.e. the depth of the ship in the water)
Dry cargo
Transport of non-liquid cargo, usually Bulk commodities such as grain, coal, iron ore, sugar and cement, but also packaged general cargo or break bulk cargo.
Drydocking
The removal of a vessel from the water for inspection, maintenance and/or repair of parts that are normally submerged
Deadweight or DWT
Deadweight tonnes is the unit of measurement of weight capacity of vessels, which is the total weight (usually in metric tonnes) the ship can carry, including cargo, Bunkers, water, stores, spares, crew, etc. at a specified Draft

F

Flag state
The country where the vessel is registered
Forward Freight Agreements or FFAs
A derivative instrument that is a means of hedging exposure to freight market risk through the purchase or sale of specified time charter rates for forward positions. Settlement is in cash, against a daily market index published by the Baltic Exchange
Freight
The revenue earned by a vessel, usually specified in US Dollars per metric tonne carried, under a Voyage Charter or a Contract of Affreightment
Front haul
Routes which run in the direction of the standard flow of traffic, i.e. loading in a port situated in what is usually a loading area and discharging in a port situated in what is usually a discharging area (when export cargo volumes exceed import cargo volumes in a given region)

H

Handymax
A bulk carrier of 42,000 to 64,999 dwt which carries a wide variety of dry bulk cargoes including Major Bulk and Minor Bulk cargoes. The segment comprises Handymax (42,000-50,000 dwt), Supramax (50,000-60,000 dwt) and Ultramax (60,000-64,999 dwt) ships. See “Supramax” for the definition of the modern, mid-size, standard Handymax.
Handysize
A bulk carrier of 10,000 to 41,999 dwt (of which our modern Handysize sub-segment is 25,000-40,000dwt) which is commonly equipped with cargo gear such as cranes. This type of vessel carries principally Minor Bulk and break bulk cargoes and limited quantities of Major Bulk cargoes. It is well suited for transporting cargoes to ports that may have draft restrictions or are not equipped with shore-based gear for loading or discharging cargoes

I

IMO
The International Maritime Organization is a specialised agency of the United Nations that is the global standard-setting authority for the safety, security and environmental performance of international shipping. Its main role is to create a regulatory framework for the shipping industry that is fair and effective, universally adopted and universally implemented.
ISM Code
The International Safety Management Code adopted by the International Maritime Organization to provide an international standard for the safe management and operation of ships and for pollution prevention. The Code establishes safety-management objectives and requires a safety management system (SMS) to be established by companies responsible for operating ships.

L

Listing Rules
The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited

M

Major Bulk
Dry bulk cargoes iron ore, coal and grain which are the largest traded of the dry bulk commodities in terms of volume and are mainly transported in Capesize and Panamax bulk carriers.
Minor Bulk
Dry bulk cargoes consumed and carried in smaller volumes (relative to the Major Bulks) such as metal ores and concentrates, bauxite and alumina, petcoke, salt and other minerals, agricultural products such as grains, fertiliser and sugar, and construction materials such as logs and forest products, cement, steel products and scrap.
Tonnes or Mt
Metric tonnes of 1,000kg

N

Newbuilding
A vessel under construction or on order

O

Off-Hire
Period during which a vessel is temporarily unable to operate under the terms of its Charter, resulting in a suspension of hire payments under the Charter and thus a loss of income.

P

P&I
Protection and indemnity insurance coverage purchased by a ship owner or Charterer against third party liabilities such as oil pollution, cargo damage, crew injury or loss of life, etc.
Panamax
A bulk carrier of about 65,000 to 100,000 dwt with length and Beam not exceeding 294 metres and 32.2 metres which permits it to transit the existing Panama Canal locks. The construction of new locks completed in 2014 now allows larger “New Panamax” ships of up to 336 metres length and 49 metres Beam to transit the canal. Panamax vessels are primarily used to transport Major Bulks, although they also transport certain Minor Bulks such as fertilisers, ores, petcoke and salt
Post-Panamax
A bulk carrier of about 100,000 to 140,000 dwt with Beam exceeding 32.2 metres, mainly used to transport coal and grains.

S

Spot market
The market for immediate chartering of a vessel, usually for a single cargo or short term trading
Supramax
A bulk carrier of 50,000 to 65,000 dwt which carries a wide variety of cargoes including Major and Minor Bulk cargoes. We now refer more accurately to our own Handymax ships as “Supramax” ships which are generally considered to represent the modern, standard Handymax.

T

Technical Management
Management of those aspects of ship owning and operation that relate to the physical operation of a vessel, including the provision of crew, routine maintenance, repairs, drydocking, supplies of stores and spares, compliance with all applicable international regulations, safety and quality management, environmental protection, newbuilding plan approval and newbuilding supervision, and related technical and financial reporting
Time Charter
A Charter for an agreed period of time where the shipowner is paid on a “per day” basis and is responsible for operating the vessel and paying the Vessel Operating Costs while the Charterer is responsible for paying the Voyage Costs and bears the risk of any delays at port or during the voyage except where caused by a defect of the ship
Time Charter Equivalent / TCE
A shipping industry standard measure of a vessel’s average daily revenue performance, calculated by deducting Voyage Costs from a vessel’s voyage revenue, and dividing this net freight by the number of days in the round-trip voyage.
Tonnage
A generic term referring to ocean-going cargo vessels

V

Vessel Operating Costs
These consist of crew expenses, insurance, spare parts, stores, lubricating oils, vessel repairs and surveys, commissions and other miscellaneous running costs
Voyage Charter
Charter under which a ship owner is paid Freight, usually specified in US Dollars per metric tonne transported, for transporting a cargo from a load port to a discharge port, where the ship owner is responsible for paying both Vessel Operating Costs and Voyage Costs
Voyage Costs
Bunker costs, port charges and canal dues (or tolls) incurred during the course of a voyage
N/A