Maritime & Shipping Glossary

A Bill of Lading (B/L) is a legal document issued by a carrier to a shipper that serves as a receipt for cargo, evidence of the contract of carriage, and, when negotiable, document of title to the goods. It details the cargo type, quantity, destination, and conditions of carriage. Charter Logic Suite can read B/L data during an audit to cross-check voyage references and cargo details against the Statement of Facts.

A charterparty (CP) is the contract between a shipowner and a charterer that governs the hire of a vessel, including laytime, demurrage, despatch, and notice clauses. It is the primary legal reference for any demurrage or despatch calculation. Charter Logic Suite extracts laytime clauses from an uploaded charterparty and applies them automatically to subsequent audits.

The Carbon Intensity Indicator (CII) is an IMO metric that rates a vessel's operational carbon efficiency on a scale from A (best) to E (worst), based on grams of CO₂ emitted per deadweight tonne-nautical mile. Vessels rated D or E must submit a corrective action plan. Charter Logic Suite references CII ratings when validating EU ETS surcharges and carbon-related charges on freight invoices.

46 CFR Part 515 is the US Code of Federal Regulations title that implements the Ocean Shipping Reform Act of 2022 (OSRA 2022), mandating 20 disclosure fields on every US-regulated ocean freight invoice. Missing or malformed fields render an invoice legally contestable within a strict 30-day dispute window. Charter Logic Suite validates every field and alerts you from Day 22 onwards so the deadline is never missed.

Dead freight is compensation paid by a charterer to a shipowner when a cargo parcel is short-shipped and the vessel sails with unused cargo capacity that the charterer was contractually obliged to fill. It is calculated as the shortfall quantity multiplied by the freight rate. Charter Logic Suite's Dead Freight Calculator computes the claim and generates a demand letter automatically.

Demurrage is a daily financial penalty paid by the charterer to the shipowner when a vessel exceeds the agreed laytime for loading or discharging at port. It is calculated by multiplying the excess time (in days) by the demurrage rate (USD per day) specified in the charterparty. Charter Logic Suite audits demurrage claims by reading the Statement of Facts, classifying every event as deductible or billable, and calculating the net amount due in 28 seconds.

Despatch is a bonus paid by the shipowner to the charterer when loading or discharging is completed faster than the agreed laytime. It is typically calculated at 50% of the demurrage rate and rewards efficient port operations. Charter Logic Suite's Laytime Profit Engine identifies despatch entitlements automatically and generates a despatch claim letter to the shipowner.

The EU Emissions Trading System (EU ETS) is the world's first major carbon market; since January 2024 it applies to large vessels on voyages into, out of, and between EU ports. Shipping companies must surrender EU Allowances (EUAs) for a share of their emissions, phased in at 40% (2024), 70% (2025), and 100% (2026+). Charter Logic Suite's EU ETS Validator cross-checks carrier surcharges against live EUA prices and phase-in factors to flag overcharges.

An EU Allowance (EUA) is a tradable carbon permit under the EU ETS, where one EUA permits the emission of one tonne of CO₂-equivalent. EUAs are priced daily on the ICE exchange and form the basis of EU ETS surcharge calculations. Charter Logic Suite fetches the live EUA spot price at audit time to compute the justified carbon surcharge on a freight invoice.

The Federal Maritime Commission (FMC) is the independent US federal agency that regulates ocean freight transportation and enforces invoice disclosure rules under 46 CFR Part 515 (OSRA 2022). US-regulated ocean freight invoices must contain 20 mandatory fields and be disputed within 30 days of the invoice date. Charter Logic Suite's FMC Invoice Validator checks all 20 fields and tracks the 30-day dispute deadline automatically.

The IMO Data Collection System (DCS) requires ships of 5,000 gross tonnage and above to report annual fuel oil consumption, CO₂ emissions, and distance travelled to their flag state. The verified DCS data is the authoritative source for a vessel's actual emissions. Charter Logic Suite cross-references IMO DCS figures against carrier-stated CO₂ tonnage when validating EU ETS surcharges.

Laytime is the agreed period, expressed in hours or days, during which a charterer may load or discharge cargo without incurring demurrage. It is defined in the charterparty and begins when a valid Notice of Readiness (NOR) is tendered and accepted. Charter Logic Suite calculates laytime used, laytime allowed, and the resulting demurrage or despatch automatically from the Statement of Facts.

The London Maritime Arbitrators Association (LMAA) is the leading body for maritime arbitration in London, the world's most popular seat for shipping disputes. LMAA awards set influential precedents on laytime, demurrage, and off-hire interpretation. Charter Logic Suite's Legal Precedent Search indexes 10,000+ LMAA and LCIA decisions so you can cite relevant awards directly in a dispute letter.

MRV is the EU regulation (2015/757) requiring ships over 5,000 GT to monitor, report, and verify their annual CO₂ emissions on voyages to, from, and between EU ports. Verified MRV data feeds into the EU ETS and the IMO DCS. Charter Logic Suite uses verified MRV/DCS emission figures as the baseline when auditing carrier carbon surcharges.

A Notice of Readiness (NOR) is a formal notice tendered by the vessel master to the charterer confirming the vessel has arrived and is ready to load or discharge. Tendering a valid NOR is what starts the laytime clock under the charterparty. Charter Logic Suite's NOR Drafting Assistant drafts a legally correct NOR and checks it against your charterparty clauses to prevent disputes before they happen.

Off-hire is a time-charter concept where hire payments are suspended for any period during which a vessel is unable to perform the service required, such as breakdown, detention, or deviation. The off-hire clause defines which events qualify and how the time is calculated. Charter Logic Suite can audit off-hire claims by reconciling the Statement of Facts events against the charterparty's off-hire provisions.

The Ocean Shipping Reform Act of 2022 (OSRA 2022) is the US statute that strengthened the FMC's authority over ocean common carriers, including the 20 mandatory invoice disclosure fields and the 30-day dispute deadline codified in 46 CFR Part 515. Charter Logic Suite's FMC Invoice Validator enforces every OSRA 2022 requirement and tracks the statutory clock automatically.

SHINC (Sundays and Holidays Included) and SHEX (Sundays and Holidays Excluded) are charterparty clauses that define whether weekends and public holidays count towards laytime. SHINC means laytime runs continuously; SHEX pauses the clock on Sundays and recognised holidays. Charter Logic Suite reads these clauses from an uploaded charterparty and applies the correct calendar logic to every laytime calculation.

A Statement of Facts (SoF) is the chronological record of every event during a vessel's port call, from arrival and NOR tender to completion of loading or discharge. It is the primary evidence used to calculate laytime and demurrage. Charter Logic Suite reads the SoF with AI, classifies every event as deductible, billable, or review, and produces a full audit in 28 seconds.

WIBON (Whether In Berth Or Not), WIPON (Whether In Port Or Not), and WCCON (Whether Customs Cleared Or Not) are charterparty NOR clauses that determine when a valid Notice of Readiness can be tendered — even if the vessel has not yet berthed, entered port, or cleared customs. They govern when laytime begins. Charter Logic Suite's NOR Drafting Assistant checks your NOR against these clauses to ensure it cannot be invalidated.