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Abandonment
A relinquishing of ownership of lost or damaged property by the insured to the insurer so that a total loss may be claimed. Abandonment is prohibited in most other types of property insurance.

Accessorial Service
A service rendered by a carrier in addition to a transportation service, such as assorting, packing, pre-cooling, heating, storage, substitution of tonnage, etc.

Act of God
An inevitable event occurring without the intervention of man - such as flood, tempest, or death - operating in case of certain contracts, such as those of insurers and carriers.

Actual Total Loss
The insured property is completely destroyed; or The insured is irretrievably deprived of the insured property; or Cargo changes in character so that it is no longer the thing that was insured (e.g., cement becomes concrete); or A ship is posted missing at Lloyd's, in which case both the ship and its cargo are deemed to be an actual total loss.

Ad Valorem Bill
An expression used to state that the value of the goods or interest is to be taken into account.

Admitted/Non-Admitted
"Admitted" means that in certain countries a local policy should be issued.  "Non-admitted" is the opposite situation. Most countries are non-admitted (i.e. their insurance laws and regulation do not require a local policy).

Advance
A container loaded aboard vessel that was booked to a later vessel.

Advance Freight
Same as Prepared Freight

Advance Note
A draft on a shipowner for wages, given to a seaman on signing Articles of Agreement and redeemable after the ship has sailed with the seaman on board.

Adventure
The exposure of property to risk at sea.

Affidavit
A written declaration on oath.

Affreightment
A contract to carry goods by ship. Charter-parties and bills of lading are contracts of affreightment.

Aft
At or near the stern or rear position of the vessel.

Agency Commission Clause
A clause in the standard hull clauses (1983) whereby no claim will be admitted under the policy to remunerate the assured for expense incurred, or time expended, in obtaining information or providing documents to support his claim.

Agency Tariff
A tariff issued by a publishing agent for one or more transportation lines.

Agent
A person authorized to transact business for and in the name of another.

All risks
An insurance term used in cargo insurance which means that the policy covers the insured property for loss caused by any fortuity. The policy does not cover inevitable loss. In practice, such a policy always specifies certain risks that are excluded from cover. The term is often mis-used by hull insurance practitioners to denote a "full terms" hull and machinery policy.

Allocation
Assignment of available spaces to a specific sales office for marketing requirements and/or to a shipper.

Arbitration
The submitting of matters of controversy to judgment by persons selected by all parties to the dispute.

Arrest
The detention of a vessel and/or other property until the purpose of the arrest has been fulfilled.

Arrival Notice
A notice, furnished to consignee, of the arrival of freight.

Arrival Notification Form
A document which advises a consignee or a container operator that goods or containers have arrived at the port of discharge.

Assessor
A person who officially estimates the value of goods for the purpose of apportioning the sum payable in the settlement of claims.

Assignee
One who receives rights from an assignor.

Assignment
The passing of beneficial rights from one party to another. A policy or certificate of insurance cannot be assigned after interest has passed, unless an agreement to assign was made, or implied, prior to the passing of interest. An assignee acquires no greater rights than were held by the assignor, and a breach of good faith by the assignor is deemed to be a breach on the part of the assignee. The Institute Time Clauses (Hulls) incorporate a clause which terminates the policy automatically if, amongst other things, the ship changes ownership or management unless the underwriters agree in writing to continue the insurance. This effectively restricts free assignment of a hull time policy. If underwriters do agree to the assignment an endorsement signed by the assignor, showing the date of assignment must be attached to the policy. The assignment is still subject to the restrictions above.

Assignor
One who assigns his rights to another.

Astray Freight
Freight bearing marks indicating owner and destination, but separated from the waybill.

Average
A partial loss.

Average (General)
Partial loss of the whole adventure deliberately made to prevent loss of the adventure. It may be sacrifice of property or expenditure incurred to save the adventure. Parties who benefit from a general average loss are required to make good that loss by contributing in the proportion that the saved value of the party's property bears to the saved value of all interests involved in the adventure. General average is a rule of the sea and is implied in all contracts of carriage by sea. Parties to the contract are liable to contribute in GA wether or not their property is insured.

Average (particular)
A fortuitous partial loss of insured property proximately caused by an insured peril, but which is not a general average loss.

Average Adjuster
A person appointed by a shipowner to collect data, guarantees, etc..., in relation to general average, and to calculate contributions due from the parties concerned to make good general average losses. The adjuster may also adjust claims on hull insurance policies for submission to underwriters.

Average Bond
An agreement signed by all interested parties acknowledging their liabilities to pay a share of the loss under general average. A "general average guarantee" is sometimes referred to (particularly in the USA) as an "average bond"

Average Disbursements
Expenditure incurred by the shipowner in connection with a general average act or an act of salvage. Such expenditure, when properly incurred, is recoverable from the GA or salvage fund created by the adjuster. Hull underwriters are not liable directly for GA expenditure. The assured must recover his expenditure from the GA fund. Underwriters' liability for the GA contribution, if any, will incorporate their proportion of the GA expenditure that is included in the contribution paid by the insured.

Avoidance
The right of an underwriter to avoid a contract of marine insurance from inception. This can occur in the event of a breach of good faith by the assured or by his broker or, in the case of a voyage policy, where the voyage does not commence within a reasonable time after acceptance of the risk by the underwriter.

Award
A decision given by a court of law or by an arbitrator to conclude a dispute. The term can be used also to define the amount of damages allowed, if any, in the award.  A judge in court will often state the reasoning for the decision, whereas this is rarely the case, with an arbitrator 's award.

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B

Back Freight
Payment due to the shipowner for the carriage of goods beyond the contract port owing to circumstances beyond the control of the shipowner.

Bare Boat Charter
Charterer hires a vessel for a long period, appoints the master and crew, and pays all running expenses.

Barratry
Any wrongful act, willfully, committed, by the master, officers or crew to the detriment of the shipowner or charterer. The Institute hull clauses cover loss of or damage to the ship when it is proximately caused by barratry; except when it is excluded by the paramount exclusions in the clauses. For example, the latter would exclude barratry involving the use of an explosive or weapon of war; also barratry carried out by a seaman on strike.

Beaufort Scale
A windscale and sea disturbance table by which mariners grade the force of wind and height of waves, thus communicating the general condition of the sea to others by use of a wind force number.

Benefit of Insurance Clause
A clause in a contract between the assured and a bailee by which the bailee of goods claims the benefit of any insurance policy effected by the cargo owner on the goods in care of the bailee. Such a clause in a contract of carriage, issued in accordance with the Carriage of Goods by Sea Act, is void at law.

Bill of Exchange
An order in writing from one person or firm to another requiring them to pay a certain sum to a person named therein.

Bill of Lading
A negotiable document by which a transportation line acknowledges receipt of freight and contracts for its movement. The surrender of the original Straight of Lading is not required by transportation lines upon delivery of the freight, exept when necessary for the purpose of identifying the consignee.

Bill of Lading - General
A document issued by an overseas carrier which is a receipt for cargo received on board and is evidence of the contract between shipper and shipowner. It is also evidence of title to the holder of the bill to the goods described on it.

Bill of Lading - Order Bill of Lading
A negotiable document by which a transportation line acknowledges receipt of freight and contracts for its movement. The surrender of the original Order Bill of Lading, properly endorsed, is required by transportation lines upon delivery of the freight, in accordance with the terms of the Bill of Lading.

Bill of Lading - Straight Bill of Lading
A negotiable document by which a transportation line acknowledges receipt of freight and contracts for its movement. The surrender of the original Straight of Lading is not required by transportation lines upon delivery of the freight, exept when necessary for the purpose of identifying the consignee.

Billed Weight
The weight shown in a waybill and freight bill.

Block
A square or rectangular piece of material used to prevent freight from moving.

Blue Peter
A rectangular flag, blue with a white square in the center, which may be displayed to indicate that a ship is ready to proceed.

Bob Tail
A tractor without a trailer.

Bolsters
Chassis component which prevents container from shifting fore and aft. It also contains the hold down clamp device.

Bonded Goods
Imported goods deposited in a Government warehouse until duty is paid.

Bonded Warehouse
A warehouse owned by persons approved by the Treasury departement, and under bond or guarantee for the strict observance of the revenue laws; utilized for storing goods until duties are paid or goods are otherwise properly released.

Bonding Company
An organization that is prepared to undertake an agreement to make good a financial guarantee on behalf of another responsible for such guarantee. Owners of "arrested" vessels may obtain such a bond to satisfy a court and to obtain release of the vessel.

Booking
The act of recording arrangements for the movement of goods by vessels.

Booking Cargo
Reserving space on a vessel.

Boot Topping
A protective composition painted round the hull of a ship to prevent corrosion between the load and light waterlines.

Bottom Treatment Clause
A clause in the Institute hull clauses, whereby underwriters specify the extent to which they shall be liable for surface preparation and primer painting of plates in repairing the bottom of a ship damaged by an insured peril.

Bottomry Bill or Bond
The pledge of a ship, or of her cargo, as security for repayment of money advanced to the master in an emergency, and of no avail if the ship be lost.

Bow Thruster
A propeller used to provide a transverse thrust to the bow of the ship and to assist movement in confined spaces.

Boycott
An unfair trade practice which occurs when someone in the insurance business refuses to have business dealings with another until he or she complies with certain conditions or concessions.

Breach of Warranty
The Marine Insurance Act (1906) demands that the assured comply literally with any warranty in the policy, whether it be a express warranty or a implied warranty. Non compliance where not excused, is term "Breach of Warranty", and discharges the underwriter from all liability under the policy, whether or not it relates to the breach, as from the date of the breach; but without prejudice to any valid claims arising from accidents occurring prior to the date of the breach. Breach of warranty is excused where circumstances have changed so that the warranty has become unnecessary; or where it would be illegal to comply with the warranty; or where the policy conditions waive breach of warranty.

Breach of Warranty Clause
A clause in a policy whereby underwriters waive breach of certain specified warranties. In hull policies, the clause relates only to warranties as to cargo, trade, locality, towage, salvage services or date of sailing, and requires prompt notice, and amended conditions and an additional premium if underwriters so desire. There is no similar clause in cargo policies as a standard, but cargo underwriters usually waive breach of the implied warranties of seaworthiness and cargoworthiness of the overseas carrying vessel, provided the assured are not privy thereto.

Break Bulk
Applies to goods that have been stripped from container (or other form of bulk carriage) for forwarding to final destination.

Break-up Voyage
A voyage where the ship's final destination is a break-up yard, for the purpose of breaking up the ship. The 1983 I.T.C. provide that where the insured ship undertakes such a voyage during the currency of the policy, any claim occurring subsequent to sailing on the break up voyage shall be limited to the scrap value of the ship. This does not apply if prior arrangements have been made with the underwriters regarding the break-up voyage. The break-up voyage clause does not affect claims recoverable under the three fourths collision clause, nor under the GA and salvage charge clause.

Breaking Bulk
The initial opening of hatches on entering port and the commencement of discharge of cargo.

Breasthook
A place bracket joining the starboard and port stringers at the bow of a ship.

Broker
An agent representing a principal to buy or sell goods, merchandise or marketable securities, or to negotiate insurance, freight rates or others matters, for a principal; the sales or transactions being negotiated not in his own name but in that of the principal.

Bulkhead (Barrier) Front -Rear
Made of wood or other material to secure cargo from movement within a container.

Bull rings
Cargo securing device mounted into floor of containers which provides for the lashing and securing of cargo.

Bung
A threaded cap, cork or other stopper for the opening (bulk hole) in a barrel, keg or drum. Can be located on lid or side.

Bung hole
The hole in a barrel, keg or drum through which liquid can be poured in or drawn out. Can be located on lid or side.

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C

C.F.S
Container Freight Station.

C.L.
Container Load.

C.O.F.C.
Container on Flat Car (No Chassis)

C.Y.
Container Yard.

Cam - Door Lock
Locking bar which secures container doors when closed.

Car carrier
A unit equipped with wheels used to transport automobiles aboard a vessel and can be moved to any in-land point.

Cargo Shift
A term used to describe the shifting or moving of freight within a container and/or highway trailer.

Cargo Tonnage
(Weight or Measurement). The weight ton in the United States is 2,000 pounds. A short ton or 2,240 pounds. A long ton and in British countries it is the English long or gross ton of 2,240 pounds. In France and other countries having the metric system, the weight ton is 2,204.64 pounds. The measurement ton is usually cubic feet, but in some instances a larger number of cubic feet is taken as weight ton. Most ocean freight is taken at weight or measurement (W/M), whichever provides greater revenue.

Carrier
Usually a commercial insurer contracted by the Department of Health and Human Services to process Medicare Part B claims payments.

Carrier's Lien
The right to retain possession of goods pending payment of overdue freight charges. The term may refer, also, to the right of a carrier to retain cargo pending payment for a GA contribution; but may be discharged in such cases by the payment of a GA deposit or provision of an acceptable GA guarantee.

Cartainer
A car container used in transportation of automobiles from port to port.

Causa Causans
The cause of a cause of loss.

Causa Proxima
Proximate cause.

Cell guide
A structure which guides the container into the cell of a vessel hatch. A hatch can consists of ten cells, each containing ten containers.

Cellular Vessel
A ship designed and constructed for the stowage of containers in vertical stacks i.e. cells (containership).

Center of Gravity
The fixed physical center of the total combined weight of the container, its cargo, or center of the mass.

Certificate of Origin
A certified document as to the origin of the goods.

Certificate of Registry
A document giving all particulars of the vessel, including the names of the owner and the master.

Certificate of weight
An authoritative statement of the weight of a shipment.

Chainbinders
Chain locking device used to secure cargo to a flat bed container.

Change of Voyage
This applies only to "voyage" policies (hull or cargo). A change of voyage occurs when the destination of the ship is voluntarily changed after commencement of the voyage. Unless arrangements have been made with the underwriters to continue cover, prior to the change, underwriters are discharged from all liability as from the time the decision to change the voyage is manifested; but without prejudice to any valid loss occurring prior to such time. Underwriters hold covered change of voyage; subject to prompt notice to underwriters, payment of n additional premium and change of conditions, if required.

Charter-party
An agreement whereby the shipowner hires his vessel to the charterer subject to certain conditions.

Chartered Ship
A ship leased by its owner or agent for a stated time, voyage or voyages.

Chine
The extended or extruded rim at each end of a cask, barrel or drum.

Chock
A wedge used to prevent motion/movement of cargo.

Claim
A demand made upon a transportation line for payment on account of a loss sustained through its negligence.

Class Rate
A rate applicable to a class rating  to which articles are assigned in a Classification.

Class Tariff
A tariff containing only class rates.

Classification (Freight)
A publication containing a list of articles and the classes to which they are assigned for the purpose of applying class rates, together with governing rules and regulations.

Classification Clause - Cargo
An Institute clause used in cargo open cover contracts to indicate the age and class of overseas carrying vessels acceptable at the premium rates specified in the contract. Basically, the ship must be iron or steel and mechanically self-propelled. She must be fully classed with any of the classification societies. She must be no more than 15 years of age. The age limit is raised to 25 years for liners. Goods carried by ships not attaining the required standard are held covered subject to payment of an additional premium. The 1992 version of this clause reduces the age limit for bulk and/or combination carriers and mineral oil carriers under 50,000grt to 10 years.

Classification Clause - Hulls
A set of London market clauses available for attachment to hull & machinery policies. They incorporate an "existing class maintained" warranty and various restrictive conditions relating to the ship's classification.

Clean Bill of Lading
One in which there is nothing to qualify the admission that the goods are shipped in good order and condition.

Clearance Label
Denotes that a vessel has complied with all the regulations for clearance outward. It is attached to the Victualling Bill by the Customs officer who clears the vessel, and is then known as the Outward Clearance.

Cleat
A piece of wood or metal secured to the floor of a container for providing additional support or strength to cargo restraining device.

Co-Insurance
Where two or more parties share the same insured risk. A reinsurer is not a co-insurer with the original insurer.

Cofferdam
It's a void space between two bulkheads.  Cofferdams are located either side of the engine-room space and are used as part of the collision bulkhead.

Collision Clause
A clause in a hull policy, covering collision liability incurred by the assured (may be termed 'Collision Liability Clause' or "Running Down Clause").

Combi Ship
A ship designed to carry both conventional and containerized cargo.

Commitment
A guarantee to provide service for a specific period.

Commixture
A mixture of two or more cargoes which cannot be separated into the relevant consignments.

Commodity
Any article of commerce. Goods shipped.

Commodity Rate
A rate applicable on a specific commodity between certain specified points.

Common Carrier
A carrier who offer their ships as general ships for the transit of goods of any shipper.

Compromised Total Losses
This term is used where hull underwriters agree to a compromised settlement for total loss of ship, in circumstances where neither an actual loss, nor a constructive total loss may be claimed, but the value of the ship when repaired does not justify the cost of repairs. This type of settlement is not subject to any basic rules, but usually applies to policies where the insured value of the ship is higher than her market value.

Concealed Damage
Damage to the contents of a package bearing no indication of having been opened.

Concealed Loss
A loss from a package bearing no indication of having been opened.

Conference
Association of ship owners operating in specific areas and routes, who agree to operate under collective conditions of carriage and rates whereby a tariff is published governing same.

Conference Ship
A ship operated by a signatory to a shipping conference.

Consequential Loss
A market loss to goods brought about by fear that goods may have suffered from a known casualty whereas no such loss exists in fact.

Consignee
Designated person to receive the cargo from the carrier according to the Bill of Lading contract.

Consignee Marks
A symbol placed on packages for export generally consisting of a square, triangle, diamond, circle, cross, etc. with designated letters and/or numbers for the purpose of identification.

Constructive Total Loss
A right of marine assured to claim a total loss on the policy because (1) the property has been lost and recovery is unlikely; or (2) an actual loss appears to be unavoidable; or (3) to prevent an actual loss it would be necessary to incur an expenditure which would exceed the saved value of the property except, in the case of a hull policy, where the expenditure must exceed the "insured" value expressed in the policy. To establish a claim for constructive total loss the assured must abandoned what remains of the property to underwriters and give notice of his intentions so to do.

Contact Damage
Damage to the ship caused by its striking nay object other than another ship or vessel (the latter being termed "collision" damage). Damage to the ship caused by it being grounded or by striking rocks or submerged objects, other than in circumstances which constitute "stranding". Damage to the ship's cargo caused by any of the above circumstances or by physical touch with other cargoes or the ship's hull etc.

Container
Ocean going container in which articles are packed.

Container Cell
A unit of a vessel hatch cell in which the container is loaded.

Container Manifest
A listing of containers with relevant information concerning the movement of those containers.

Continuation Clause
A clause providing for the continuation of a hull time policy beyond the natural expiry date. The clause can be used at the option of a hull assured, whose ship is on a voyage at the time the policy is due to expire, but who does not wish to renew the hull policy for a further period of time. The assured, by giving notice to the underwriters before the expiry date of the policy, can continue cover until the ship arrives at her planned destination port. An additional premium is payable on a pro rata monthly basis for the time the policy is continued.

Contributory Value
The value of property saved by a general average or salvage act , on which the contribution by each interest to the loss is calculated.

Convertible Currency
A London market term for any currency other than sterling, US dollars or Canadian dollars.

Corner Casting
Reinforced locking device located at the top and bottom of the corner post which provides for the lifting and securing of containers.

Corner Post (4)
Main support in construction container. Strong support for chocking and blocking inside.

Counter Guarantee
An undertaking given by a cargo assured to an underwriter agreeing to reimburse the underwriter in the event that the issue of the underwriter's guarantee to pay a general average contribution results in payment in excess of the amount properly due under the policy.

Crossmember
Main support of container floor.

Cubic Capacity
The carrying capacity of a car or container on highway trailer according to measurement in cubic feet.

Customary Deductions
New for old deductions made by an average adjuster from the cost of repairs for general average damage to a ship over 15 years old. Hull underwriters do not make new for old deductions from claims for repairing damage to the ship, whether they be for GA sacrifice or particular average.

Customs
The regulatory body of most governments which inspects and certifies that the cargo is described. Administrates governmental regulations pertaining to foreign commerce.

Customs Seal
A seal applied by a Customs Agent which places the cargo in bond and cannot be opened without Customs Authority.

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D

Damages
The amount required to pay for a loss.

De-ramp
To unload from a flat car.

Dead Freight
Freight rate which is paid on empty space in a vessel when the charterer is responsible for the freight rate of a full cargo. It should be paid before sailing.

Dead-Head
A one-way move/round-trip movement with one leg as either a bobtail or pulling an empty container.

Dead-Line
A container determined to be incapable of use for loading freight or any other vehicle that is taken out of service, repair and/or maintenance.

Deadweight Tonnage
Technically, the term refers to the actual weight of cargo, fuel and stores required to bring the ship down to her loadline marks. In marine insurance practice the term refers to the dimension of a ship used for the purpose of calculating the premium for a hull & machinery policy on full conditions.

Deals
Lengths of timber between 5ft. and 3ft. in length and between 2 inches and 9 inches thick.

Deck Log
Ship's log recording general details concerning the running of the ship, including accidents concerned with ship or cargo.

Declivity
The angle of the launching ways at a shipyard.

Deductible
An amount or percentage, expressed in a policy, that is deducted from partial loss claims. Most commonly seen in policies covering hull and machinery, where the policy deductible is applied to all claims arising out of any accident or series of accidents comprising one occurrence, other than a total loss claim or sue and labor charges relating to a total loss. The cost of sighting the bottom for stranding damage is exempt from the deductible in the Institute hull clauses.

Defeasible Interest
A cargo insurable interest that ceases during the transit of goods.

Deferred Account
A system allowing the shipowner to pay his annual premium by installments.

Delivery
The act of transfering possession, as the transfert of property from consignor to carrier, one carrier to another, or carrier to consignee.

Demise Chaterparty
An agreement whereby the charterer takes over control costs and responsabilities of the vessel for an agreed period.

Demurrage
The sum agreed by charter to be paid as damages for delay beyond the stipulated time for loading or discharging. It should be collected daily by the master or agent. The term is sometimes used in hull insurance practice to refer to loss of hire money.

Density
The weight of an article or container per cubic foot or cubic meter. The ratio or mass to bulk or volume. The number tons carried over a line (or section of a line) in a unit of time.

Deposit Receipt
A receipt given in respect of a general average deposit payment.

Derelict
A vessel that has been abandoned by the crew but has not sunk.

Detention
Compensation payable to the ocean carrier/container owner for the detention of his equipment beyond the allowable free time.

Deviation
A deviation occurs when a ship is on a voyage and departs from the customary or designated route with the intention of returning to that route to complete the voyage. A hull time policy is not affected by deviation, nor is a cargo policy that is subject to the Institute Cargo Clauses. In the case of a hull voyage policy deviation discharges the underwriter from all liability as from the time the vessel leaves the stated or customary course, except where the deviation is excused by s.49 of the MIA, 1906, or the assured gives the underwriter immediate notice of the deviation upon receipt of advices, agrees to any amended terms of cover required and pays an additional premium, if required.

Direct Loading
Loading of freight in a container directly at a shipper's rate.

Disbursements
Expenses incurred by the shipowner in connection with running a ship.

Disbursements Clause
A clause in a policy covering hull and machinery of a ship, which incorporates a warranty prohibiting the assured from effecting additional insurances to include total loss of the ship, other than those listed in the clause. Breach of this warranty is not held covered, and discharges the underwriter from all liability under the hull and machinery policy as from the date of breach of warranty. The clause permits a maximum amount that may be insured in respect of 'disbursements', 'increased value', 'anticipated freight', etc. without breach of warranty taking place.

Dispatch Money
When so agreed in the charter-party, this is paid by the shipowner to the charterer as a result of the vessel completing loading or discharging before the stipulated time.

Displacement Tonnage
This term is chiefly used when referring to warships and other non-cargo carrying vessels. It is the actual weight of water displaced by the vessel when floating at her loaded draught.

Dispo
Disposition log of all containers on any particular ship. Used in booking to match off with final booking printout to verify destination ports.

Diversion
A change in the billing after the shipment has been received by the carrier at the point of origin and prior to delivery at destination.

Dock Receipt
A receipt given for a shipment received or delivered at a pier to dock. When delivery of a foreign shipment is completed, the dock receipt is surrendered to the transportation line and a bill of lading is issued.

Documents of Title
Documents produced by a consignee as evidence of right to take delivery of goods (eg Bill of Lading).

Door to Door
Through transport of container and its lading from shipper to consignee.

Double Deck Load
A second tier of cargo on top of the first one.

Drawback
A repayment of duty on the exportation of goods previously imported.

Dray
The movement of trailers or containers in or out of a marshalling yard, to or from a local shipper, consignee or another carrier.

Drayage
The charge made for hauling freight, carts, drays, or trucks.

Drill Ship
A type of drilling rig used in oil exploration at sea.

Dry/Van/Skin
A container totally enclosed for the handling of general cargo.

Dumb Barge
A barge that has no means of propulsion.

Dunnage
 The material used to protect or support freight in or on cars and vessels (bracings, false floors, meat racks, sawdust, etc.)

Dunnage Bag (inflatable)
Flexible air bags constructed of various plies of kraft paper in various sizes. Also made of rubber of various sizes used for in-house movements. Inflated so that movement of cargo is restricted.

Duty of Assured Clause (Cargo)
This appears in the Institute cargo clauses published for use with the MAR form of policy. It directs the attention of the assured, his agents, etc. to the duty (as required by the MIA, 1906) to take reasonable measures to avert or minimise any loss which is recoverable under the policy; also to ensure that all rights against carriers and others are properly preserved and exercised. Underwriters agree to reimburse the assured for any reasonable expenditure incurred by his compliance with the clause; in practice, these expenses are termed 'sue & labour' charges (which see).

Duty of Assured Clause (Sue and Labor)
This appears in the Institute hull clauses published for use with the MAR form of policy. It directs the attention of the assured, etc. to the duty (required by the MIA, 1906) to avert or minimize any loss which is recoverable under the policy and provides that underwriters will pay sue & labor charges (which see) incurred in compliance with the clause. The clause incorporates a 'waiver clause' (which see) and provisions regarding the application of underinsurance to sue & labor claims.

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E

Embargo
An order prohibiting the acceptance and/or handling of freight at certain points or via certain routes due to emergencies, congestion, strikes, acts of God, etc.

English Jurisdiction Clause
This clause appears in the London market MAR policy form, and applies to all claims except where a foreign jurisdiction clause is attached, by agreement with the underwriters, to the policy. The clause provides that claims under the policy are subject to English jurisdiction in the event that action is taken in a court of law against the underwriters.

English Law and Practice Clause
This clause appears in all Institute clauses published for attachment to the MAR form of policy. It provides that when one applies law and practice to the interpretation of the policy conditions decisions must be based on English law and practice, and applies irrespective of the country of jurisdiction.

Entering Inwards
The reporting of the vessel's arrival in port by the master at the Custom House. Permission to commence discharging is obtained.

Entreport
A place of transshipment.

Entry (Customs)
A statement of kinds, quantities and values of goods imported togetherwith duties due, if any, and declared before a Customs Officer or other designated officer.

Entry Outwards
The reporting of the intention to commence a new voyage by the master at the
Custom House. Permission to commence loading is obtained.

Equity
The money value of an insurance company that is over and above it's liabilities. Liabilities include almost all of it's reserves.

Escalator Clause
A clause allowing for adjustment of the insured value in certain non-marine material damage insurances. A similar clause can be found in builders risks policies covering ships under construction.

Ex-dec
Export declaration.

Excess
The term 'excess' was used for many years in the marine market to denote an amount that had to be exceeded before a partial loss claim attached to the policy. Once the excess was passed the amount of the claim above the amount of the excess was paid. The term has gradually disappeared in the marine market, to be replaced by the term 'deductible', which has the same effect on partial loss claims.

Excess Point
Term used in excess of loss reinsurance to determine the point at which the reinsurer comes on risk.

Excess Value Insurance
This term was commonly used in the marine market in reference to insurances effected additionally to the policy covering the hull and machinery of a ship. These could apply to insurable interest in respect of ship-owners' liabilities, or additional insurances covering hull interests (eg disbursements). Today, the term 'excess liabilities' is used for the former, and 'increased value' for the latter.

Export License
A certificate granting permission to export goods.

Express Warranty
A warranty that is specified in the policy document, or is attached thereto. A warranty that applies to the policy, but is not expressed therein (eg warranty of legality), is termed an 'implied warranty'.

Extended Protest
Detailed statement made by the master of a vessel concerning an accident which has become the subject of a court case.

Extra Charges
Expenses incurred in connection with a claim under a policy.

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F

F.A.K.
Freight All Kinds.

Fac/oblig
Facultative obligatory. When applied to a reinsurance contract this term allows the reassured to cede under the contract only those risks he does not wish to retain; but the reinsurer remains under obligation to accept all cessions that come within the scope of the contract. In direct insurance the term is used in relation to open covers and similar contracts (usually operated by brokers) where the broker is not obliged to declare every item that comes within the scope of the contract, but the insurer is obliged to accept all valid items declared by the broker.

Factor
An agent employed to sell in his own name (at the agreed commission) goods or merchandise belonging to his principal; his acts being binding in the principal at the instance of third parties. Compare with Broker.

False Billing
Describing freight or shipping documents so as to mis-represent the actual contents or weight of shipment.

Feeder Vessel
Generally a smaller vessel which is used to relay cargo in containers from/to a line vessel from/to a beyond/advanced port of call which is not served by the line vessel directly.

Fiduciary
A person holding the funds or property of another in a position of trust, and who is obligated to act in a prudent and ethical manner. An example would be an attorney, bank trustee, the executor of an estate, etc?

Fifth Wheel
A device located on the rear of the tractor which receives the kingpin of the chassis and connects the two pieces of equipment.

Fixed Objects
Harbors, piers, etc., with which a ship might come into contact.

Flat Rack
 A 20, 35 or 40 foot container with no sides or frames at the front and rear of container used for loading machinery and heavy equipment by side loading.

Floor Load
Full floor load of cargo.

Flotsam
Cargo cast or lost overboard and recoverable by reason of its remaining afloat.

Force Majeure
An occurrence outside human control (eg earthquake), a superior power.

Fore
At or near the bow or forward portion of the vessel.

Forebody
That part of a ship which is forward of midships.

Forecastle
Raised part at the bow of the ship.

Forefoot
The lower part in the stem of a ship that curves to meet the keel.

Foreign Jurisdiction Clause
A clause agreed by underwriters and attached to the policy, that provides for the policy to be subject to legal jurisdiction of the country named in the clause. This will, normally, take precedence over the English jurisdiction clause in the MAR policy form; but it is customary for the latter to be deleted in such cases to avoid confusion. It does not take precedence over the English law & practice clause in the Institute clauses.

Forestay
A wire support to the foreside of a mast.

Forklift
Used primarily for lifting, stacking, and moving heavy objects; it consists typically of projecting blades that can be slid under the load and then raised or lowered.

Foul Bill
A bill of lading that has been claused to show that the goods were not received in a sound condition.

Franchise
In an English policy the term 'franchise' has been used to define a percentage expressed in the policy (e.g. the 'memorandum' in the SG policy form) which was applied to particular average losses. If the loss fell below this percentage of the amount insured, no claim attached to the policy. If the loss attained the franchise percentage, the claim was paid in full. The franchise system is not generally used in the London market today and is used only in policies which cover freight at risk of the carrier.

Free Astray
See Astray Freight.

Free Port
Area considered apart from the rest of the country for Customs purposes. Goods for local use or re-export can enter free ports duty free.

Free Time - Cargo
The amount of time provided by tariff for the consignee/agent to accept delivery of cargo at the expiration of which demurrage charges accrue.

Free Time - Equipment
 The amount of time provided by T.I.R. contract to carriers for the loading or unloading of container at the expiration of which detention charges will accrue.

Free in and out
Cargo to be loaded and discharged free to the vessel.

Free of Capture and Seizure
Commonly abbreviated to F.C.&.S., this term was used until 1982 in all marine insurance contracts to refer to the war exclusion clause. Its use was discontinued in the UK cargo insurance market in 1982 and in the hull insurance market in 1983.

Free on board
Goods delivered on board the vessel free of extra charge to the purchaser. The goods become the responsibility of the buyer once they are on board the ship.

Freeboard
This is the height between the deck line and the Plimsoll (or Load) line.

Freeing Port
An opening to allow water from the deck of a ship to flow over the side.

Freight
For insurance purposes, the term 'freight' relates to the remuneration received or receivable by a carrier for the carriage of goods, and can include the profit he derives from the carriage of his own goods. Where freight is paid in advance by the shipper, on a non returnable basis, the insurable interest is vested in the shipper and is normally embraced within the insured value of the goods. Where freight is paid on 'outturn' of the goods at the destination port, the insurable interest is vested in the carrier (shipowner or charterer). In shipping practice, the term freight may be used to define the goods carried in transit. Thus, personnel involved in arrangements for such transit may be termed 'freight forwarders'. It is commonplace to hear goods referred to as 'freight' in regard to rail carriage, air carriage, etc.

Freight Bill
a) Destination Freight Bill: A bill rendered by a transportation line to consignee, giving a description of the amount of charges (if not pre-paid).

b) Pre-paid Freight Bill: A bill rendered by a transportation line to shipper, giving a description of the freight, the names of consignee and destination, weight and amount of charges.

Freight Charges
The charges assessed for transporting freight.

Freight Contingency
The insurable interest of a consignee who has paid freight on goods when delivered over the ship's side, but where the goods are still subject to peril until they arrive at the final destination.

Freight Forwarder
A person engaged in the business of assembling, collecting, consolidating, shipping, and distributing freight; a person acting as agent in the trans-shipping of freight to or from countries and the clearing of freight through Federal Customs.

Freight Rate
The charge for transporting goods by water.

Freight Waiver Clause
The underwriter insuring hull and machinery of a ship is entitled, on payment of a constructive total loss, to take over the ship, arrange to deliver the cargo and retain any freight earned thereby. The 'freight waiver clause' in the hull policy conditions waives the right to earned freight. Prior to publication of the 1983 hull clauses this clause was commonly termed the 'freight abandonment' clause.

Frustration of Adventure
A circumstance whereby a ship or goods cannot reach the contemplated destination but remain undamaged and are not lost to the owner. Claims based on frustration of the voyage or adventure are normally excluded from policies covering war risks and strike risks.

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G

G.A. in Full Clause
A clause in a cargo policy whereby the underwriter agrees to pay general average contributions in full even though the contributory value may be greater than the insured value.

Garboard Strake
The shell plating of a ship that is next to the keelplate.

General Average
An internationally accepted rule of the sea. When a ship is in danger at sea, whereby the maritime adventure is likely to become a total loss, the master is at liberty to sacrifice property in the adventure or to incur reasonable expenditure to save the adventure. Measures taken for the sole benefit of any particular interest are not general average. On successful completion of the adventure. or if it is abandoned in a place of safety, on successful attainment of such place the ship is declared as entering .under average". Security in the shape of deposits or guarantees is taken from each cargo interests and an average adjuster is appointed. The adjuster calculates the value of the saved interests and each interest is required to contribute a rateable proportion to make good the general average loss. The MIA, 1906, provides that underwriters are liable for general average contribution only where the circumstances causing the GA act constitute the operation of an insured peril but it is customary for cargo insurers to qualify this by applying the exception only to exclusions expressed in the cargo clauses. Marine policies on standard conditions, comply with the MIA provision that underwriters' liability is reduced by any underinsurance indicated by a comparison between the insured value, less any PA claim and the contributory value in the GA adjustment.

General Average Bond
An agreement signed by all parties involved in a general average act.

General Average Contribution
The proportion payable by one of the parties involved in a general average act to make good the loss suffered in that act.

General Average Deposit
A deposit paid by a consignee in return for delivery of the goods where such goods are subject to general average contribution.

General Average Disbursements
Expenses paid by the shipowner as part of a general average act. Such expenses are recovered by the shipowner from the general average fund. Unlike GA sacrifice, there is no direct liability on hull underwriters to reimburse the assured for GA disbursements. The disbursements will be included in the final GA adjustment and incorporated in the GA contribution, underwriters paying this insofar as it is recoverable under the policy.

General Average Fund
The total arrived at by adding together general average expenditure and the value of property sacrificed in a general act, plus costs of its adjustment.

General Average Guarantee
An undertaking by a financial house or an underwriter to pay the contribution due towards a general average fund.

General Exclusions Clause
A clause in the Institute Cargo Clauses 1982, which specifies risks that are excluded, irrespective of the risks covered elsewhere in the wording.

General Order Warehouse (G.O.)
Warehouse for the storage of freight which has not cleared Customs. All must be entered within a period of 14 days from date of vessel sailing or must be taken from dock and put into this warehouse. The Customs depart may pickup from the carrier who has a lien on cargo in order to be paid ocean charges before entry can be made from the warehouse.

Good Faith
See "Utmost Good Faith".

Grain Certificate
A certificate to show that the regulations have been complied with when carrying a grain cargo.

Grantee
The buyer of real estate.

Gross Tonnage
This is the volume of the interior of the vessel including all spaces which are permanently closed in (but excluding the double bottom). This is calculated not by weight but by space; one ton being represented by 100 cubic feet or, where metric measurement is concerned, 1000 cubic centimetres per ton.

Gross Weight
Total weight of container, chassis, tractor and payload.

Grounding
To separate a container physically from a chassis stacking the container on the ground.

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H

Hague Rules
International Agreement setting forth conditions governing the carriage of goods by sea. Article IV, Rule 5, states that liability for the shipowners negligence is limited to $500 per unit.
The Hague Rules package limit is Sterling 100. 
U.S. COGSA $500 per package. 
Hague Visby is 555.67 SDR's. 
Hamburg Rules 2.5 SDR's per Kg or 835 SDR's per package.
Warsaw Convention $20 per Kg.

Hatch
Opening in a ship's deck through which cargo is lowered to or brought up from the holds.

Hatch Cover
A water-tight covering which goes over the opening in the deck of a vessel giving access to the cargo hold.

Header Bar
Bar or beam on rear of container (open top) that can be removed or swung to improve access into container.

Headload
A quantity of cargo loaded in the front of a container.

Heavy Lift
A unit of cargo which cannot be lifted by the normal ship's lifting gear.

Held Covered
An agreement by underwriters to provide cover in certain circumstances. Where this is a policy provision, cover is subject to prompt advice to the underwriters that the circumstances have taken place and payment of an additional premium, if required. The held covered provision may allow underwriters to amend the policy conditions. A 'held covered' provision in broker's slip is not legally binding on the subscribing underwriters until it is embodied in a legally valid policy, but underwriters should still ensure that they understand what is intended when initialing such slip agreements. Where it is agreed in the London market to hold covered a renewal, pending receipt of confirmation from the assured, such agreement is valid for no more than 14 days unless agreed otherwise.

High Cube
A container which exceeds 8'6'' in height.

High seas
Maritime areas that are outside the jurisdiction of any State.

Hogged
A hogged ship is one that is held amidships with both ends sagging lower than the centre.

Holddown Clamp
Locking device to hold container on chassis during transit.

Home Office
Generally the corporate headquarters of insurers and the location where the chief officers of the organization are housed.

Hoot
A longshore shift between 0200/0300 hours and 0800 hours.

Hostler
A driver who moves container within the same facility or between two facilities in the same general area.

Hull Insurance
Insurance on the ship, its machinery and equipment.

Humping
The process of connecting a moving railcar with a motionless railcar which results in a force of great magnitude and shock.

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I

Implied Warranty
A warranty that is not expressed in a policy, but which is implied to be therein by
law (eg warranty of seaworthiness in a voyage policy, warranty of legality in all policies).

Import
Goods or services purchased from another country and brought into one's own country.

In Personam
Legal action against a person.

In Rem
A legal term referring to an action against a corporation is an In Personam action.

Incoterms
A set of ICC (International Chamber of Commerce) terms offered for optional use in trading contracts and intended to reduce misunderstandings in the meaning of international trading terms.

Increased Value (Hulls)
An insurance effected on a hull interest (eg "disbursements") to provide additional indemnity to that provided by the assured's hull & machinery marine policy in event of a total loss of the insured ship. The H & M policy incorporates a warranty which restricts the amount that can be insured in an increased value policy.

Increased Value Clause (Cargo)
A clause in a cargo policy which provides that, where both an underlying policy and an increased value policy cover the same goods for the same transit, the insured values expressed in both policies shall be aggregated; so that the sum insured by each policy shall be deemed to be part of the whole. The intention is that, where both policies settle a claim, any recoveries in respect of that claim are shared between the underwriters subscribing both policies.

Indemnity
Liability of an insurer for loss under a policy.

Indirect Damage
Damage caused by an insured peril but not proximately caused thereby.

Inherent Nature
The natural tendency of certain cargoes to suffer from inevitable loss; usually engendered by delay in transit. An example would be fruit which deteriorates naturally during delay. Unless the policy provides otherwise, inherent nature of the subject matter insured is excluded by the MIA, 1906.

Inherent Vice
A quality in a cargo which, in event of certain circumstances, will cause loss to the cargo. An example would be the inherent vice in soft coal which can give rise to spontaneous combustion when the coal is carried in a wet condition in a hot humid hold. Unless the policy provides otherwise, inherent vice of the subject matter insured is excluded by the MIA, 1906.

Initial Carrier
The transportation line to which a shipment is delivered by the shipper.

Inland Carrier
A transportation line which hauls export or import traffic between ports and inland points.

Institute Cargo Clauses
Standard insurance conditions, published by the Institute of London Underwriters, for policies covering goods in transit overseas.

Institute Clause
A standard clause published by the Institute of London Underwriters.

Institute Time Clauses
Standard insurance conditions, published by the Institute of London Underwriters, for policies covering ships for a period of time.

Institute Warranties
A set of express warranties, published by the Institute of London Underwriters, for use in hull & machinery policies. The set comprises five locality warranties and one trade warranty; the latter relating to the carriage of Indian coal as cargo. In event of breach of any of the warranties, the assured is held covered by the breach of warranty clause in the Institute hull clauses (see "Breach of Warranty Clause").

Institute of London Underwriters
An organization representing the interests of member insurance companies. Although the majority of members are British companies, membership is available, at the discretion of the ILU, to foreign companies. The Institute maintains a close liaison with Lloyd's marine market, and provides facilities for a number of joint committees to operate.

Insulated Container
A container used to protect cargo from freezing or extremely warm temperatures with no refrigeration unit.

Insurable Interest
The interest one has in relation to property exposed to peril whereby one may lose financially by the loss of, or damage to, such property or may incur a liability in respect thereof. A person who effects a marine insurance contract without an insurable interest or a reasonable expectation of acquiring such interest is guilty of an offence under English law. In order to claim under a policy, one must have an insurable interest in the subject matter insured at the time the loss occurs.

Insured Value
The value of property as expressed in a policy of insurance.

Intercoastal
Between one coast and another, as between the Atlantic and the Pacific coasts.

Interline
Between two or more transportation lines or a carrier with which one interchanges cargo and/or equipment.

Interline Freight
Freight moving from point of origin to destination over the lines of two or more transportation lines.

Intermodal
Combination of modes of transportation.

Invoice (Export)
A document setting out in detail the goods consigned, marks and numbers, cost, any charges, and name of consignee.

Inward Charges
Pilotage and other expenses incurred on entering port.

Irrespective of Percentage
This term was often seen in cargo insurance contracts when the SG policy was in use. Its effect was to make claims payable without reference to the FPA warranty or the franchise expressed in the memorandum in the policy form. With the abrogation of the SG policy for cargo insurances, the term has fallen into disuse in the London market.

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J

Jason Clause
A clause in a contract of carriage relating to liability of the shipowner under the US Harter Act in disputes concerning general average.

Jerque Note
A document given to the master by the Customs after the inward cargo is discharged and the vessel has been rummaged.

Jetsam
Cargo or goods which sink when jettisoned. The term applies also to such goods when washed ashore.

Jettison
The act of throwing overboard part of a vessel's cargo or hull in hopes of saving the ship from sinking.

Jo-Dog
A mechanical device attached to a fifth wheel to increase a tractor to a three-axle unit increasing the legal weight carrying capability of the tractor.

Joint Cargo Committee
A group of London company underwriters and Lloyd's underwriters who meet to discuss matters relating to cargo insurance and to make recommendations to the cargo insurance market.

Joint Hull Committee
A group of London company underwriters and Lloyd's underwriters who meet to discuss matters relating to hull insurance conditions and rating structures.

Jurisdiction Clause
A clause in a policy that specifies the country in which any court action relating to the policy must be pursued.

Jury Mast
A temporary mast.

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K

K.F.F
Keep From Freezing.

Kingpin
Locking pin device is located on the bottom side of the chassis which engages into the fifth wheel of tractor.

Kingpost
A vertical mast that supports a derrick.

Knocked Down Condition
Goods (eg vehicles) dismantled for transit.

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L

L.C.L
Less than a full container load.

L.T.L.
Less than a full Truck Load.

Lagan
Cargo thrown overboard, but buoyed so that it may be recovered.

Laker
A vessel specially constructed for navigation in the waterways of the Great Lakes and canal systems of North America.

Landbridge
A joint ocean/rail/ocean movement between two foreign countries.

Landing Gear
Resting support for trailer when not attached to tractor.

Lashing
Materials used to secure cargo in a container or trailer, or to secure containers or other heavy lifts in or on the vessel. Such materials usually consist of wire rope, turnbuckles, chains, and binders, etc. The act of securing cargo in containers or trailers or securing other heavy lifts and/or containers in or on a vessel.

Latent Defect
A defect in the construction of a ship or machinery that is not readily discernible to a competent person carrying out a normal inspection. Discovery of a latent defect does not give a rise to a claim on the ordinary hull policy, but damage caused thereby is usually covered.

Lay Days
Days allowed by charter for loading or discharging cargo.

Lay-up Return
Part of the annual premium on a ship time policy paid back to the assured by the underwriters because the ship has been laid up and not exposed to full navigational risks for a minimum period, usually not less than 30 consecutive days. Such return is not paid until the natural expiry date of the policy and is forfeit if the vessel becomes a total loss before such date.

Leadage
The cost of transporting coal from colliery to place of shipment.

Leave-off
A load booked and intended to be scheduled for loading on a given vessel, but left off in error.

Legal Weight
The weight of the goods and interior packing, but not the container (a term used in foreign trade). A maximum weight limitation for a total highway authorities which, when exceeded, may subject carriers to fines or impounding vehicles.

Letter of Credit
A form letter issued by a bank indicating that a purchaser in a foreign country has established credit in a specified amount in the seller's favor and that payment will be made upon presentation of draft together with certain specified documents.

Liability Insurance
An insurance to reimburse the assured for any amount paid by him by way of damages in respect of a wrong done to another party. The liability may be due to damage to another's property or person, or to infringement of another's rights. Such insurance covers only the legal liability of the assured and although the Marine Insurance Act, 1906 states the measure the indemnity to be the amount of the liability , it is usual for the insurer to fix a limit as the maximum amount recoverable under the policy. The most common form of liability insurance in the marine market is that for collision liability under a hull policy. Most other shipowner's liabilities are covered in Protection and Indemnity Clubs.

Lien
A claim against property which then serves as security for the payment of that claim.

Light Bill
A receipt for the payment of light dues.

Light Box
A container containing less than the full load of cargo by volume or weight and in which other small shipments can reasonably be loaded.

Light Dues
Moneys collected by the U.K. Customs on behalf of Trinity House for the maintenance of lighthouses and buoys. Dues are levied on vessels according to their net registered tonnage.

Light Vessel
A vessel which has space available for the acceptance of additional loaded containers.

Lighterage
The price paid for loading or unloading ships by lighters or barges.

Limber Hole
A drainage hole in a ship.

Limited Terms
An insurance expression meaning that the policy gives less cover than a policy on
full conditions (eg total loss only).

Line Slip
A signing slip issued off a long term cover.

Line-Haul-Ocean
The movement of freight between major market areas, i.e., Japan to U.S. versus feeder vessel operations.

Line-Haul-Road
The movement of freight over the road from one town or city (usually at a long distance) to another town or city.

Liner
A ship on a regular schedule calling at specified ports.

Lloyd's Agents
Persons appointed by the Corporation of Lloyd's and stationed in most world ports. One of their many functions is to safeguard Lloyd's interests and report movements and losses of ships.

Lloyd's Broker
An intermediary who negotiates insurance contracts with Lloyd's underwriters on behalf of his clients, the assured. For a broker to be admitted as a Lloyd's broker he must satisfy the Committee of Lloyd's that he is a suitable person to become a Lloyd's broker. Only Lloyd's brokers and their nominated substitutes (holding a valid Lloyd's security pass) are permitted to enter the underwriting room at Lloyd's to transact business with underwriters.

Lloyd's Register of Shipping
An independent non-profit-making Society. It undertakes surveys and classification of vessels; also produces various annual publications.

Load Line
The Load Line, sometimes called the Plimsoll Line, or "marks", indicates the depth in the water down to which a ship may be loaded; the position of these marks is governed by international convention and is calculated by a Classification Society surveyor.

Location Clause
A clause in a cargo insurance contract limiting insurance cover at any location during transit when the goods are not on the oversea vessel. The intention is to restrict accumulation of risk in one location, and normally applies to open cover conditions.

Locking Bar
Device which secures container doors at top and bottom.

London Insurance Market Network
An electronic data transfer system embracing a network of computers. This system is designed to reduce the flow of paperwork and improve the flow of information within the London insurance market.

Long Ton
2,240 pounds.

Loop
A delivery and a pickup from a common point to a common point.

Loss of Specie
A change in the character of cargo which, in insurance terms, is effectively an actual total loss.

Lump Sum Freight
A fixed freight rate, regardless of how much cargo is loaded.

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M

MAR Policy Form
A simplified form of marine insurance policy that was introduced in the Lloyd's marine insurance market to replace the SG policy form. A similar form of policy was introduced by the Institute of London Underwriters, for use by member companies, at the same time. The new policy form was introduced in 1982 for cargo insurance and in 1983 for hull insurances.

MAREN Policy Form
A policy form used in the London marine insurance market to evidence a renewed long term contract where there are no security or other substantial changes from the conditions in the expiring contract.

Machinery Damage Additional Deductible Clause
An Institute clause available for use in a policy covering hull & machinery that provides for an additional deductible to be applied to claims for damage to machinery which is attributable to negligence of master, officers or crew.

Made Good
The sums paid to a general average fund to make good losses incurred by the general average act.

Malicious Damage Clause
A clause published by the Institute of London Underwriters for use in a cargo policy that is subject to the Institute Cargo Clauses (1982) B or C. It adds the risks of malicious acts, vandalism and sabotage to the cargo policy. The clause may be used with any of the Institute trades clauses that are based on the ICC B or C conditions.

Manifest
A document giving the description of a ship's cargo or the contents of a railcar, truck, or container.

Manufacturer's Data Plate
A plate mounted on the container indicating the name and the address of the container manufacturer, giving details of gross and tare weights and external dimensions.

Maritime Lien
The claim a master and crew have on the vessel for the payment of wages due. The terms may be applied, also, to the rights of a salvor in regard to property that is subject to a salvage award; also, to the rights of a carrier in regard to cargo that is liable for a general average contribution.

Marks
Letters, numbers, and/or characters placed on a package for purposes of identification.

Marshalling Yard
A location for parking trailers awaiting further movement.

Master
The admiralty law term for the captain of a ship.

Matched Set or Unit
A combination of a highway chassis and a sea container.

Mate's Receipt
A receipt signed by the mate to say the cargo has been received on board in good order and condition.

Material Circumstances
Any circumstances that would affect a prudent underwriter in deciding whether or not to accept an insurance contract and in assessing the correct premium to charge.

Measurement Cargo
Cargo on which the transportation charge is assessed on the basis of measurement.

Memorandum Bill of Lading
The triplicate copy of a an inland/domestic bill of lading.

Mini-Bridge
A joint rail/ocean movement between a U.S. port and a foreign country.

Mis-Stow
A container which is stowed in an improper position on a vessel or a container on a vessel which does not belong on that vessel.

Missing Ship
A ship is deemed to be "missing" when, following extensive inquiries, she is officially posted as "missing" at Lloyd's. She is then considered to be an "actual total loss" and policy claims for both hull and cargo are settled on that basis.

Motor Carrier
A term used to indicate a company which moves trailers via highway.

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N

Name
An underwriting member at Lloyd's.

Nesting
Packing hollow-ware cargo (e.g. earthenware bowls) so that one item nests within another. Paper or straw. may be used to separate each item and avoid damage.

Net Loss
The amount of loss sustained by an insurer after giving effect to alll applicable reinsurance, salvage, and subrogation recoveries.

Net Tonnage
This is the gross tonnage of a ship less the machinery, boiler and bunker, crew and stores spaces.

Network
See "London Insurance Market Network".

New for Old
When new material or parts replace damaged material or parts during repairs to a ship underwriters are entitled to make a deduction from the claim as a result of betterment but they waive this right in practice. Average adjusters may apply the principle in general average for vessels over 15 years old.

No Cure -No Pay
The principle of pure salvage whereby the salvor who fails in his task receives no reward for his effort.

No show
A container which was not loaded aboard the scheduled vessel due to the late arrival of the van.

Nose
The front of the trailer or container.

Not to Inure Clause
A clause in a cargo policy stating that the policy shall not inure to the benefit of a carrier or other bailee. The intention is to deny the right of carriers to benefit from the insurance when they claim such a right in the contract of carriage.

Notary Public
An official certified to take affidavits and depositions from members of the public.

Notice of Abandonment
The initial action to be taken by an assured who wishes to claim a constructive total loss. Notice to underwriters must be given with reasonable diligence as soon as the assured is aware of the circumstance. Its purpose is to give the underwriter the opportunity to take action to prevent or minimize the loss.

Nuclear Exclusion Clause
A clause that is common to all insurance policies (though the wording may vary), whereby all loss of or damage to the subject matter insured arising from a nuclear weapon, or similar, is excluded from the policy cover.

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O

O.C.P. (Overland Common Point)
Movement of a trailer to or from an inland location to a port at the shipper's or consignee's expense.

O.C.P. Shipment
A shipment to/from an inland location to/from a port.

Obligor
Commonly called the principal.

Official Number
The registered number given to a merchant vessel and cut into the vessel's "main beam", together with the net registered tonnage.

Omnibus Clause
A clause in a hull policy extending liability cover to embrace, in addition to the assured's legal liability, the liability of other organizations who are connected with the ship. It usually excludes liability of shipyards, repair yards and others to whom underwriters do not wish to extend cover.

Open Charter
Where the charter-party specifies neither the kind of cargo nor the ports of destination.

Open Cover
A long term contract whereby the subscribing insurers agree to accept declarations on
the agreed subject matter insured as coming within the scope of the cover. It is customary for limits to be specified in the contract and for there to be a cancellation clause whereby either party may give notice to cancel the contract. Cargo contracts usually have a limit in respect of anyone shipment or vessel or sending or other, as agreed in the contract, and may incorporate a location clause.

Open-Top container
Container having a removable tarpaulin top to facilitate the overhead loading and unloading of cargo.

Operating Expenses
The cost incident to the actual handling of traffic.

Operating Ratio
The relation of operating expenses to gross receipts.

Ordinary Breakage
Breakage of fragile cargo which by its regularity has become accepted as inevitable loss during transit. It is not mentioned in the general exclusion clauses in the ICC (1982), but is one of the Statutory exclusions in the MIA, 1906.

Ordinary Leakage
Natural loss of liquid in a cargo (e.g. evaporation of water in grain, evaporation of oil, contraction of oil, etc. during transit).

Original Bill
Original Bill of Lading.

Original Slip
The broker's placing slip.

Orlop
Lowest deck of a ship.

Outturn
The quantity of cargo discharged from a ship.

Over Profile
A stowage condition in which more containers are aboard vessel than the vessel was designed to carry.

Over-Booked Vessel
A condition in which all available container spaces aboard a given vessel are reserved and more containers have been booked to the vessel that it can carry.

Over-Stow
To increase the profile of a vessel from normal carrying capacity.

Overage
A term used to define the addition premium paid under a cargo open cover in regard to the 'held covered' provision in the Institute classification clause.

Owner-Operator
Independent trucker, usually moving trailers under the authority of a motor carrier.

Oxter Plate
A plate fitted to the top of a rudder post.

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P

P.O.S.
Permanently Out of Service.

Packing List
A detailed specification as to goods packed.

Pallet
A low, portable platform, usually double faced, on which cargo is stacked for storage or transportation.

Particular Average
A fortuitous partial loss to the subject matter insured, proximately caused by an insured peril but which is not a general average loss. In a freight at risk policy the term may be applied to a claim for loss of freight following a particular average loss of goods.

Particular Charge
An expense incurred by an assured in relation to an insured loss. This can be a means of preventing further loss in transit (e.g. sue and labor charges), of assessing loss (e.g. a survey fee) or making good a loss at destination (e.g. repacking); the latter being sometimes referred to as an "extra charge" when connected with a claim on the policy.

Per Diem
By the day.

Percentage of Depreciation
The proportion of the total value of cargo that is the subject of loss from an insured peril. The percentage is applied to the sum insured by the policy to determine the amount of claim payable.

Perfecting the Sight
Adding necessary details of the bill of lading when such had been previously omitted.

Peril
A term used in the Marine Insurance Act, 1906, to denote a hazard. The principle of proximate cause is applied to an insured peril to determine whether or not a loss is recoverable. In modern practice the term 'risk' replaces 'peril'.

Perishable Freight
Freight subject to decay or deterioration.

Pier to House
Container stowed at pier and unloaded at destination consignee.

Pier to Pier
Container stowed at origin pier and unloaded at destination pier.

Pig Transfer
Transfer of freight from a container to railroad trailer equipment.

Pig Yard
A railroad parking yard where trailers are loaded and unloaded from trains.

Piggy Packer at Railheads
Used by railroads to lift containers and trailers and place them on or remove them from rail cars.

Pilferage
Feloniously breaking into containers and/or individual cartons and taking and removing property of others.

Piracy
An assault on a vessel, cargo, crew or passengers at sea by persons owing no allegiance to a recognized flag and acting for personal gain. It also includes acts of rioters who attack a ship from the shore and of passengers who mutiny. This peril, along with war perils, was excluded from the SG policy by the F .C. & S. clause; to be reinstated if the agreed policy conditions covered war risks. Thus for many years piracy was related to war risks. The 1982 cargo war clauses do not cover piracy, and it is not embraced within the risks covered by the B or C cargo clauses. The 1983 hull clauses incorporate piracy among the risks covered by the standard marine clauses; piracy not being included in the war risks cover (1983).

Plimsoll Mark
The loading mark on the side of a vessel.

Point of Entry
A port at which foreign goods are admitted into the receiving country. Ports of Entry are officially designated by the government.

Point of Origin
The station at which a shipment is received by a transportation line from the shipper.

Policy
A contract of insurance.

Policy Proof of Interest
A policy wherein the underwriter agrees to waive proof that an insurable
interest is enjoyed by the assured, at the time of loss, as a condition of claim payment. In other policies the underwriter is not liable for any claim where the assured is unable to prove that his interest in the subject matter of the insurance exists at the time of loss. P.P.I. policies are invalid in a court of law, but are not illegal except where no interest exists or where there was no reasonable expectation that it would exist at the time the policy was effected.

Pollution Hazard Clause
A clause in a hull policy, whereby underwriters cover deliberate damage or loss to the ship caused by Governmental authority in attempts to mitigate a threat of pollution hazard; where such relates to loss or damage to the ship and where it has not resulted from a want of due diligence on the part of the assured, owners or managers of the ship.

Pool
A permanent positioning of one or more containers at a location to facilitate continuous volume loading, i.e., large shipper.

Port
(a) A harbor or haven where ships may anchor.
(b) That side of a vessel on the left hand of a person who stands on board facing the bow.

Portage Bill
A bill giving the statement of wages of each member of the crew at the end of a voyage.

Power Box
A container equipped with self-contained diesel generators to provide auxiliary power for reefers over and above the normal reefer complement of the vessel.

Power of Attorney
A document which empowers one person to act for another.

Pratique
Permission to land crew and cargo after the vessel has satisfied the port doctor as to the
state of health on board.

Pre-paid
A term denoting that transportation charges have been or are to be paid at the point of shipment.

Promissory Note
A note promising to pay a certain person a stated sum on a specified date.

Protest
A written declaration by the master and witnessed before a Notary Public.

Provisions
Statements contained in an insurance policy which explain the benefits, conditions and other features of the insurance contract.

Proximate Cause
The most effective cause of a loss in a chain of events leading to the loss. A basic
principle of insurance in that, unless the policy provides otherwise, the underwriter is not liable for any loss that is not proximately caused by an insured peril.

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Q

Quad Tier
A stowage condition whereby a fourth tier of containers is loaded above deck.

Quality Assurance
Activities involving a review of quality of services and the taking of any corrective actions to remove any deficiencies.

Quayage
The charge for using a berth alongside a wharf.

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R

R.F.S.
Railroad Freight Station provides for the handling of less than container load cargo.

Railroad J-2 Form
A form issued by a railroad acknowledging and outlining damages.

Ramp
A rail facility where containers and highway trailers are loaded onto or off railroad flatcars.

Ramp Check
A listing of incoming trailers that have arrived at the railroad termination point. An inventory of all containers and chassis belonging to Sea-Land which are stationed at a rail ramping station.

Ranging Clause
A clause in a hull policy exempting underwriters from liability under the policy (for damage received as well as for damage done) in the event that the insured ship collides with another ship while the vessels are approaching or ranging alongside each other at sea for the purpose of transferring cargo. Cover may be obtained by arrangement with the underwriters, in practice, provided they are notified, of the intention to transfer cargo in this manner, in advance. The exemption does not apply to customary transshipment in port areas involving inshore harbor craft.

Re-Stow
A container which requires unloading and reloading to the same vessel during the stevedoring sequence of events.

Re-Work
Unloading the cargo from one container into another container due to defective equipment or the freight's requiring rehandling or weight adjustment, or improper blocking and bracing.

Recapture
The action of a ceding company taking back from a reinsurer insurance previously ceded.

Receiver
The person appointed to "receive" and administer the rents and profits, or other moneys, accruing to an estate or business undertaking which is administered or wound-up under the supervision of the court. Official Receivers are officials permanently employed to act in that capacity in bankruptcy proceedings or the winding-up of joint-stock companies.

Receiver of Wreck
An official who is responsible to the Dept. of Trade for all wreckage that is salved on the coastline, or which is found at sea and is brought to a British port.

Reconsignement
The act of changing the original bill of lading as to consignee before cargo is tendered for delivery.

Reference
The submission of a matter in dispute to an arbitrator for his award.

Refrigerated Container (Reefer)
A container capable of maintaining a given temperature inside the container, either heated or cooled, usually with mechanical machinery.

Relay Container
A container arriving on one vessel into a port and reloading onto another vessel to reach its ultimate destination.

Release
Once a load has been authorized to be stowed, a transfer of stowage information within the computer takes place. This information is then used by the stowage department to assign a specific ship position to a container. A signification by Customs that proper entry has been made on an import shipment and the cargo can be delivered to principals. 

Restricted Articles
Articles which are handled only under certain conditions.

Retardation
A force causing container and cargo to move front to rear, side to side.

Ride
A container which remains in the same position on a ship until reaching ultimate destination.

Risk
A fortuity, it does not embrace inevitable loss. The term is used to define causes of loss covered by a policy.

Roll Back
A container not loaded aboard a vessel due to an incomplete shipment or incomplete documentation.

Rolling Hoop
The extruded rims fabricated on drums for structural strength and ease of handling.

Roof Bow
Main support of container roof.

Running Down Clause
A term sometimes used in market practice to define the collision liability clause in a hull policy.

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S

SG Policy
The policy form adopted by Lloyd's, in 1779, as a standard for all marine insurance business. The form covered both ship and goods on a specified voyage and required considerable adaptation to be used for modem hull and cargo business. The London company market adopted separate policy forms for hull and cargo business, but these were very similar to Lloyd's SG form and still required adaptation. In January, 1982, the London cargo insurance market replaced the SG form with the MAR form of policy. The London hull insurance market took the same measure in October 1983. The Institute clauses published for use with the SG form and its company counterpart have been withdrawn.

Sailing cards
Cards issued by shipbrokers to their customers, giving particulars of the ship, or ships they are about to load, the loading berth, date of departure, etc.

Salvage
Property taken over by an insurer to reduce its loss.

Salvage Adjustment
A compromised settlement on a cargo policy, usually when the adventure has been terminated short of destination and damaged goods are sold at the intermediate port. The underwriter pays the difference between the sum insured by the policy and the proceeds of the sale.

Salvage Association
An association, closely connected with the London insurance market, whose functions is to take instructions from interested parties (eg underwriters) to investigate casualties and to make recommendations for the preservation and protection of property; also to determine the extent and proximate cause of loss when required.

Salvage Award
An amount awarded to a salvor for services rendered in the salvage of property in peril at sea. The award may be made by a court or by arbitration, depending on the terms of the salvage contract. Underwriters contribute towards a salvage award insofar as the award is in respect of insured property in peril from an insured risk, subject to any restrictions imposed by the policy (eg a policy deductible) and, except where the policy provides otherwise, subject to reduction to reflect under-insurance, if any.

Scantling
The thickness of a steel plate in a ship.

Scraping the bottom
Removing weed and incrustation from the underside of a ship. Not covered by a
hull policy; not even when necessary to repair damage recoverable under the policy.

Seal
A device that must be broken before the container can be opened. The seal is generally secured to the container by the shipper.

Seaworthiness
The fitness of a ship to encounter the hazards of the sea with reasonable safety. In addition to having a sound hull the ship must be fully and competently crewed and sufficiently fuelled and provisioned for the next stage of voyage. All her equipment must be in proper working order and, if she carries cargo, she must be cargoworthy and properly trimmed and stowed. The MIA, 1906, incorporates an implied warranty in a hull voyage policy which requires the ship to be seaworthy at the commencement of the voyage and, if the voyage is in stages, at the commencement of each stage of the voyage. Breach of this warranty is not held covered, so in such case, the underwriters are discharged f