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What does it mean?

Glossary

Scroll down to see our useful list of shipping terms and definitions.


A

Aframax tanker

A tanker of typically 85,000 to 124,999 DWT that carries crude oil.


Age

The age of a ship measured in years and calculated as the current year or date minus the year or date of build.


AHT (Anchor Handling Tug)

Specialised tugs for the towing and anchoring of mobile drilling rigs and other structures.


AHTS (Anchor Handling Tug Supply)

Specialised offshore tugs for the towing and anchoring of mobile drilling rigs. Can also be used in a supply capacity, to transport wet and dry cargo.


AIS (Automatic identification system)

A tracking system used to identify and locate ships worldwide.


Automated DCF value

VesselsValue calculates daily automated DCF values of cargo ships. A financial model is employed which takes into account the specification of the vessel (ship type, age, size and features) and each of the factors that affect net earnings (charter rates, OPEX rates, survey costs, fees and commissions, discount rate, inflation rates and scrap prices).


Automated demolition value

VesselsValue calculates daily automated demolition values for cargo ships. The value is determined from the lightweight (LDT) of the vessel and the scrap price per ton of steel for the sector.


Automated market value

VesselsValue calculates daily automated market values of cargo ships. A mathematical model is employed which incorporates five factors: ship type, age, size, features and freight earnings. Sales data are used to calibrate the model using a statistical technique known as regression analysis.


Automated valuation model (AVM)

An online system that uses a mathematical framework and a database of ship information to determine the value of a vessel on a specified date.


Automated value

A value calculated using an automated valuation model (AVM). The automated valuation service (VV$) at VesselsValue provides market value, DCF value, demolition value, book value (to follow) and replacement value (to follow).


B

Ballast

Heavy substances loaded by a vessel to improve stability, trim, sea-keeping and to keep the propeller immersed when not carrying cargo (unladen).


Ballast voyage

A voyage where ballast is loaded instead of cargo.


Baltic Exchange Sale and Purchase Assessments [BSPA]

Weekly (Monday) published market values for 5 year old vessels: VLCC 305,000 dwt, Aframax 105,000 dwt, MR 45,000 dwt, Capesize 172,000 dwt, Panamax (dry) 74,000 dwt and Super Handy (Supramax) 52,000 dwt.


Bareboat charter

An arrangement for the chartering or hiring of a ship whereby no crew or provisions are included as part of the agreement. The charterer provides crew, bunkers and pays all operating costs.


Beam

The width of a ship. Also called breadth.


Book value

The amount in USD millions for which the vessel was acquired minus straight line depreciation at a specified date. The company owning a vessel will record a figure for book value, sometimes called carrying value, on their balance sheet.


Booked days

The number of days during the period for which the vessel is expected to be hired for a charter.


BP/TBP (Bollard Pull/Tons Bollard Pull)

Pulling power of a vessel. Particularly relevant to AHT/AHTS vessels.


Bulker (or Bulk carrier)

A ship that transports unpackaged cargo, such as coal, ore or grain, in large quantities.


Bunkers

The fuel, normally fuel oil or diesel, used to power a vessel’s engines.


C

Calibration

The process by which the coefficients for a market segment in the valuation model for market value are determined. See automated market value.


Capesize bulker

A bulker of typically 120,000 to 450,000 DWT that usually carries coal, ore or other raw materials.


Cargo ship (or freighter)

A ship that carries cargo, such as goods or materials.


Carrying value

See book value.


Charter-party

A contract between a ship owner and an owner of goods by which part or all of a ship is leased for a voyage or stated time.


Charterer

A person or company who hires a ship.


Classification society

A non-governmental organization that establishes and maintains technical standards for the construction and operation of ships and offshore structures.


Clean oil

Refined oil products such as naphtha.


Combo (or combined carrier)

A cargo ship that can carry liquids or dry material.


Container

A steel box of a set size for transporting goods.


Container ship

A cargo ship that carries containers.


Contract of affreightment

An agreement to transport a defined amount of cargo at an agreed freight rate, with the shipowner choosing the ship.


Core description

The set of key properties of a vessel, comprising IMO, name, type, size, year of build.


Crew Boat/FSV (Fast Support Vessel)

An offshore vessel with a specific capacity to transport large numbers of crew. Also has cargo capability.


Crude oil

Unrefined oil.


Cubic Meters (CBM)

The measure of the volume of gas a ship can carry.


Current historic value

The value of a ship at a past time as determined at the present time. The current historic value will change if new information which would have been pertinent to that value subsequently becomes available.


Current value

The value of a ship at the present time.


D

DCF value

The net amount in US dollars a vessel is expected to earn over its remaining life at a specified date, calculated using discounted cash flow analysis. Sometimes called value in use, long term asset value (LTAV) or the income approach.


Deadweight tonnage (DWT)

A measure of how much mass a ship can carry. It does not include the weight of the ship itself. DWT is the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew.


Demolition price

The amount in US dollars paid for a ship sold for demolition.


Demolition value

The estimated amount in US dollars for which a vessel could be sold for demolition at a specified date. Sometimes called the residual value or scrap value.


Dirty oil

Oil products that are not fully refined.


Discounted Cash Flow (DCF)

A method used in finance to determine the present value of money obtained at some future time. All future cash flows (ie net earnings) are estimated and then discounted (ie reduced) to compensate for the delay and for the risk that the cash flow might not be obtained.


Draft

The depth of a ship in the water. Calculated as vertical distance between the waterline and the keel, is expressed in metres, or in feet in the USA.


Drillship

Vessel designed for deepwater and ultra-deepwater offshore drilling of oil and gas wells.


Dry (market)

A generic term which refers to the bulk market. Examples are coal, cement, fertiliser, timber and scrap metal.


Dry cargo carrier

A vessel capable of carrying general cargoes or bulk cargo.


Dry docking

To put a vessel into a large dock in the form of a basin that can be pumped free of water, used for making repairs below a vessel's water line.


Dynamic Positioning (Dynamic Positioning) 0/1/2/3

The ability for a vessel to stay in an exact position despite the ocean current/swell. Key when working in close proximity to rigs and other vessels. The higher number the better (indicates how many back up circuits there are on board)


E

ERRV (Emergency Response and Rescue Vessel)

Safety vessels, contamination control, Firefighting ability and people rescue.


Exploration & Development (Also known as Exploration & Production)

The beginning of the offshore oil production chain, particularly pertinent to the employment of offshore vessels.


F

Feature

Part of the description of a vessel. A vessel’s features include builder and engine type, and can also include ice class, pump type, gearing and various other aspects.


Feedermax

A container ship of typically 500 to 1249 TEU.


FEU (forty foot equivalent unit)

An inexact unit of cargo capacity often used to describe the size of container ships and container terminals.


Fire-Fighting (FiFi) 0/1/2/3

The firefighting capability of an offshore vessel. The higher the rating, the more water capacity and better fire-fighting ability.


Floating Production Storage and Offloading (FPSO):

A floating vessel used by the offshore oil and gas industry. Usually a converted oil tanker or purpose built vessel.


Freight rate

A price at which a certain cargo is delivered from one point to another.


Fully pressurised gas carrier (FP LPG)

LPG carrier of typically 100 to 19,999 CBM.


G

Gas carrier

A ship that carries LNG or LPG.


Geographical Information System (GIS)

Software used to visualize, analyse and interpret spatial or geographical data.


H

Hamburg Ship Evaluation Standard (HSES)

A formulation of long term asset value (LTAV) developed by Vereinigung Hamburger Schiffsmakler und Schiffsagenten (VHSS), the German Shipbroker’s Association.


Handy bulker

A bulker of typically 20,000 to 39,999 DWT.


Handy container

A container ship of typically 1,250 to 1,999 TEU.


Handy tanker

A tanker of typically 29,500 to 50,000 DWT.


Handymax bulker

A bulker of typically 35,000 to 49,999 DWT.


Hold

A general name for the large compartments below the main deck designated for stowage of general cargo.


Hull

Shell or body of a ship, made up of its sides and bottom.


I

IMO (International Maritime Organisation)

A United Nations agency devoted to shipping.


IMO number

A unique identification number, issued by the International Maritime Organisation, which remains with a vessel throughout its life.


Income approach

See DCF value


J

Jack-Up

A self-elevating rig or platform with movable legs allowing it to reach the sea floor. Usually moved by tugs or heavy lift ships and confined to shallow waters under 120m deep.


L

Laid up

A ship that is not in active service and may be awaiting better markets, fitting out or work needed for classification.


Large gas carrier (LGC)

An LPG carrier of typically 50,000 to 69,999 CBM.


Large LNG

An LNG carrier of typically 100,000 to 199,999 CBM.


Large LNG regasification vessel (RV)

An LNG carrier of typically 100,000 to 199,999 CBM that has the facility to convert liquefied natural gas to natural gas.


Lightweight (LWT)

The weight in metric tons of an unladen ship.


Liquified ethylene gas carrier (LEG)

An LEG carrier of typically 100 to 22,999 CBM.


Liquified ethylene gas carrier (LEG) (oversize)

An LEG carrier of typically 23,000 to 39,999 CBM.


Lloyds Register of Shipping

An international provider of marine classification services for the maintenance of safety and environmental standards during a ship’s life.


LNG

Natural gas that has been condensed into a liquid for storage or transport purposes.


LO-LO (Lift on, lift off)

A container ship in which containers are lifted on or off by crane.


Long term asset value (LTAV)

See DCF value.


LPG

Liquefied petroleum gas.


M

Mapping

See vessel tracking system.


Market segment

A ship type, or occasionally a collection of ship types, treated as a coherent entity for the purposes of valuation.


Market value

The estimated amount in US dollars for which a vessel could be bought or sold on the open market at a specified date. Sometimes called the sale and purchase value or the fair market value.


Merchant ship

A ship that carries cargo or passengers for hire.


Midesize gas carrier (MGC)

An LPG carrier of typically 17,500 to 49,999 CBM.


Midsize LNG

An LNG carrier of typically 30,000 to 99,999 CBM.


MODU

Mobile Offshore Drilling Unit.


Multigas carrier

A gas carriers of typically 1 to 29,999 CBM that can carry LNG or LPG.


Multipurpose Ship

A ship that can carry bulk cargo and containers, and in some cases also liquids.


N

New panamax container

A container ship of typically 10,000 to 13,999 TEU that is too large to pass through the Panama Canal.


O

O/O vessel

A combo of typically 20,000 to 350,000 DWT that can carry ore or oil.


OBO vessel

A combo of typically 20,000 to 350,000 DWT that can carry ore, bulk or oil.


Ocean Going Tug

Specialised offshore tugs, often with ice breaking capabilities or specialist oil recovery capabilities.


Oil tanker

A cargo ship designed for the bulk transport of oil.


OPEX

The costs of a vessel's technical operation, crewing, management, insurance and maintenance, but excluding costs of financing. OPEX also excludes commercial management costs and survey costs.


OSVs

Any vessel that can be categorised as an Offshore Supply Vessel, servicing offshore rigs in a supply capacity.


P

P&I

Protection and indemnity insurance.


P&I club

Protection and Indemnity Association, the carrier’s mutual liability assurer.


Panamax bulker

A bulker of typically 50,000 to 99,999 DWT with a beam less than 33m that can pass through the Panama Canal.


Panamax container

A container ship of typically 3,000 to 5,999 TEU with a beam less than 33m that can pass through the Panama Canal.


Panamax tanker

A tanker of typically 55,000 to 84,999 DWT with a beam less than 33m that can pass through the Panama Canal.


Parcel tanker

A tanker designed to carry an assortment of liquids, such as chemicals, or different grades of a liquid, such as petroleum, at one time.


Post fixture

Operational administration of a vessel once it is employed.


Post panamax bulker

A bulker of typically 50,000 to 119,999 DWT that is too large to pass through the Panama Canal.


Post panamax container

A container ship of typically 3,000 to 9,999 TEU that is too large to pass through the Panama Canal.


Post panamax tanker

A tanker of typically 50,000 to 84,999 DWT that is too large to pass through the Panama Canal.


Price

The amount in USD paid for a ship. Also known as sale price or market price.


PROBO

A combo of typically 20,000 to 350,000 DWT that can carry products, ore, bulk or oil.


Product tanker

Tanker that carries refined oil products.


PSV (Platform Supply Vessel)

An offshore vessel designed and used to supply and support offshore platforms by transporting crew and supplies/cargo to the platforms, and returning waste/crew/other cargo to shore. Characterised by its large open deck.


Q

Q-Flex

An LNG carrier of typically 200,000 to 229,999 CBM.


Q-Max

An LNG carrier of typically 230,000 to 300,000 CBM.


R

Rated Water Depth (FT)

Unit of measurement for MODUS. Indicates the maximum operating depth of the drillship, semi-submersible or jack up.


Reefer

A vessel capable of handling refrigerated cargoes, usually fresh fruit.


Replacement value

The estimated amount in US dollars it would cost to replace a vessel with a brand new vessel of an equivalent specification at a specified date.


Residual value

See demolition value


S

Sale record

Information determined at the time of a recorded sale of a ship: principally, the IMO number, ship type, DWT, date of sale and price. VesselsValue typically obtains this information from Seasure brokers, shipboker market reports and publications.


Scrap price

The scrap price in US dollars per long ton of steel on the demolition date.


Seasure Shipping Ltd

Seasure Shipbroking Ltd is a London based Sale and Purchase Shipbroker established in 1993. Seasure deal with newbuilding, second hand and demolition sales of all ship types including Bulkers, Tankers, Container ships, and Gas Carriers. VesselsValue works directly with Seasure S&P brokers in development and in on-going data collection, testing and optimisation.


Sector

A main division of cargo ships, which includes bulkers, tankers, container ships, LNG carriers and LPG carriers.


Semi pressurised fully refrigerated (SP FR) LPG (large)

An LPG carrier of typically 12,000 to 22,999 CBM.


Semi pressurised fully refrigerated (SP FR) LPG (small)

An LPG carrier of typically 100 to 11,999 CBM.


Semi-Submersible Rig

Floating offshore drilling platform, with submerged pontoons for added stability.


Ship

A large marine craft typically in excess of 5,000 DWT, including but not limited to bulkers, tankers, combination carriers, container ships, gas carriers, passenger ships, etc. A synonym for vessel. Within VesselsValue a ship generally refers a ship in general or a sold ship (in contrast to a vessel being valued).


Shipbroker (or broker)

Specialist intermediary/negotiator between ship owners and charterers who use ships to transport cargo, or between buyers and sellers of vessels.


Shuttle tanker

A high spec ship designed for oil transport from an off-shore oil field as an alternative to constructing oil pipelines.


Single Buoy Mooring (SBM)

An anchored loading buoy for tankers to load or offload oil or gas products Also known as a Single Point Mooring (SPM).


Sister ships

Ships built to the same design.


Small scale LNG

An LNG carrier of typically 1 to 29,999 CBM.


Small tanker

A tanker of typically 100 to 29,499 DWT.


Spot market

Short term contracts normally executed immediately and lasting no longer than three months in duration. An example of a spot market is where ships that are docked in a port enter into a contract to immediately transport crude oil supplied by a nearby company.


Spud Date

The date an oil or gas well first penetrates the ground.


Sub panamax container

A container ship of typically 2,000 to 2,999 TEU.


Subsea Support Vessels

Offshore vessels catering to the construction, inspection and maintenance of offshore rigs and installations.


Suezmax tanker

A tanker of typically 125,000 to 199,999 DWT.


Supramax bulker

A bulker of typically 50,000 to 60,999 DWT.


Survey costs

The costs involved during the period when a vessel is being surveyed. This can include putting the vessel into a dry dock.


T

Tanker

A cargo ship that carries liquids, such as oil or chemicals.


Terminal

An industrial storage facility for oil or gas products.


TEU (twenty foot equivalent unit)

An inexact unit of cargo capacity often used to describe the size of container ships and container terminals.


Time charter (t/c)

Vessel charter for a fixed period instead of for a certain number of voyages or trips.


Time charter equivalent (TCE)

A shipping industry standard used to calculate the average daily revenue performance of a vessel. Time charter equivalent is calculated from gross freight income less voyage costs.


Type

A category of vessel normally determined by its general use and size. For example Aframax tanker, Capesize bulker, etc.


U

Ultra large container vessel (ULCV)

A container ship of typically 13,400 to 22,500 TEU.


Ultramax bulker

A bulker of typically 61,000 to 72,999 DWT.


V

Value

The amount in US dollars a vessel is considered to be worth. Sometimes used as a synonym for market value. Ways of valuing a ship include market value, DCF value, demolition value, book value and replacement value


Value in use

See DCF value


Very large crude carrier (VLCC)

A tanker of typically 200,000 to 600,000 DWT.


Very large ethane carrier (VLEC)

A gas carrier of typically 70,000 to 90,000 CBM, designed to carry ethane.


Very large gas carrier (VLGC)

An LPG carrier of typically 70,000 to 90,000 CBM.


Vessel

A synonym for ship. Within VesselsValue a vessel generally refers to the vessel being valued (in contrast to a ship in general or a sold ship a sold ship).


Vessel tracking system (VTS)

A system which uses AIS data to map the real-time location and other properties of vessels. VesselsValue offers a mapping service (VV@), which provides positions, interactive information and graphic analysis for cargo ships.


VesselsValue

An online provider of intelligence on cargo ships, established in 2011 and used by commercial and investment banks, private equity, investment and hedge funds, ship owners and operators, lawyers, accountants, brokers and underwriters. Their three main services are vessel search (VV+), automated valuations (VV$) and mapping (VV@).


Voyage charter

A contract whereby the shipowner places the vessel at the disposal of the charterer for one or more voyages, the shipowner being responsible for the operation of the vessel.


W

Wet (market)

A generic term that is used to refer to the tanker market.


Working days

The number of days in a non-survey year for which a vessel is expected to be available for hire, normally 355.


Y

Year or Date of Build

The year or date a vessel becomes live and is able to be used for its defined purpose.


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