Freight Forwarding Terminology

Letter of credit. A banking document (usually) whereby a bank guarantees payment of a bill of exchange (draft)

Ships not in active service; a ship which is out of commission for fitting out, awaiting better markets, needing work for classification, etc.

Type of ship which trades only in the Great Lakes of North America. They usually carry grain and ore cargoes.

A system of through rates and service offered by a carrier for cargo shipments from a foreign port to a port at one part of a land-mass, across land to another port at another part of that land-mass and finally by sea to a foreign port destination.

Lighter aboard ship: A barge carrier designed to act as a shuttle between ports, taking on and discharging barges.

LASH stand for Lighter Aboard Ship. It is a specialized container ship carrying very large floating containers, or "lighters." The ship carries its own massive crane, which loads and discharges the containers over the stern. The lighters each have a capacity of 400 tons and are stowed in the holds and on deck. While, the ship is at sea with one set of lighters, further sets can be made ready. Loading and discharge are rapid at about 15 minutes per lighter, no port or dock facilities are needed, and the lighters can be grouped for pushing by towboats along inland waterways.

Temporary cessation of trading of a ship by a shipowner during a period when there is a surplus of ships in relation to the level of available cargoes. This surplus, known as overtonnaging, has the effect of depressing freight rates to the extent that some shipowners no longer find it economical to trade their ship, preferring to lay them up until there is a reversal in the trend.

Laydays/canceling

The time allowed by a shipowner to the charterer or shipper in which to load or discharge the cargo. This may be expressed in days or hours or tons per day. Laydays may be set in running days (every calendar day), working days (excluding days where operations are prevented by bad weather). It may be contractually provided that when the charterer or shipper loads/unloads more quickly than is necessary, he or she will be eligible for payment of an incentive called dispatch money. However, if the loading or unloading time is excessive, the charterer or shipper may have to pay a penalty called demurrage.

Less than Container Load. A consignment of cargo which is inefficient to fill a shipping container. It is grouped with other consignments for the same destination in a container at a container freight station.

Retention of property until outstanding debt is paid

A specially constructed double ended boat which can withstand heavy, rough seas.

The master of every vessel is bound by international law to make the officers, crew and passengers adequately acquainted with the procedures of lowering and the use of lifeboats in case of emergency.

A charge made, usually by a container freight station or depot, for lifting a container off of a vehicle (e.g.: truck).

A charge made, usually by a container freight station or depot, for lifting a container onto of a vehicle (e.g.: truck).

The weight of a ship's hull, machinery, equipment and spares. This is often the basis on which ships are paid for when purchased for scrapping. The difference between the loaded displacement and light displacement is the ship's deadweight.

General name for a broad, flat-bottomed boat used in transporting cargo between a vessel and the shore. The distinction between a lighter and a barge is more in the manner of use than in equipment. The term "lighter" refers to a short haul, generally in connection with loading and unloading operations of vessels in harbor while the term "barge" is more often used when the cargo is being carried to its destination over a long distance.

An ocean ship which carries barges. These barges are loaded with cargo, often at a variety of locations, towed to the ocean ship, sometimes referred to as the mother ship, and lifted or, in some cases, floated on board. After the ocean crossing, the barges are off-loaded and towed to their various destinations. The ocean ship then receives a further set of barges which have been assembled in readiness. This concept was designed to eliminate the need for specialized port equipment and to avoid transshipment with its consequent extra cost. See also LASH.

Charge for conveying cargo by lighters or barges.

Conveying cargo with another vessel known as a lighter from ship to shore, or vice versa.

A cargo-carrying ship which is operated between scheduled,advertised ports of loading and discharge on a regular basis.

Vessels operating on fixed itineraries or regular schedules and established rates available to all shippers. The freight rates which are charged are based on the shipping company's tariff or if the company is a member of a liner conference, the tariff of that conference.

British classification society.

Liquefied Natural Gas, or a carrier of LNG.

Liquefied natural gas carrier, perhaps the most sophisticated of all commercial ships. The cargo tanks are made of a special aluminum alloy and are heavily insulated to carry natural gas in its liquid state at a temperature of -2850F. The LNG ship costs about twice as much as an oil tanker of the same size.

Lift-on/Lift-off

Percentage of cargo or passengers carried e.g. 4000 tons carried on a vessel of 10000 capacity has a load factor of 40%

The line on a vessel indicating the maximum depth to which that vessel can sink when loaded with cargo. Also known as marks, Plimsol Line.

Subdivision of a ship's voyage during which the ship is carrying cargo.

Lloyds open form.

Letter of indemnity.

Imperial ton of 2,240 pounds = 1016 kg.

A member of the crew stationed on the forecastle, or on the bridge, whose duty it is to watch for any dangerous objects or for any other vessels heaving into sight.

Liquefied Petroleum Gas, or a carrier of LPG.

Liner Shipping Agreements.

Long Ton.

Money paid to shipper for charter of a ship (or portion) up to stated limit irrespective of quantity of cargo.