Shipping terms and Chartering glossary

Term Meaning
Safety stock The inventory a company holds beyond normal needs as a buffer against delays in receipt of orders or changes in customer buying patterns.
Salvage material Unused material that has a market value and can be sold.
Scrap material Unusable material that has no market value.
Sea Waybill Transport document which is not a document of title/negotiable document. The sea waybill indicates the "on board" loading of the goods and can be used in cases where no ocean bill of lading, i.e. no document of title is required. For receipt of the goods, presentation of the sea waybill by the consignee named therein is not required, which can speed up processing at the port of destination.
Separable cost A cost that a company can directly assign to a particular segment of the business.
Service The defined, regular pattern of calls made by a carrier in the pick up and discharge of cargo.
Service Contract A contract between a shipper and an ocean carrier or conference, in which the shipper makes a commitment to provide a minimum quantity of cargo over a fixed time period. The ocean carrier or conference also commits to a rate or rate schedule as well as a defined service level, such as space, transit item, port rotation, or other features.
Ship agent A liner company or tramp ship operator representative who facilitates ship arrival, clearance, loading and unloading, and fee payment while at a specific port.
Ship broker A firm that serves as a go-between for the tramp ship owner and the chartering consignor or consignee.
Shipment A shipment is a user-defined unit containing goods (single or multiple units) and requires transportation from one location to another. A shipment becomes a shipment when it leaves the consignor's location. A shipment is complete when it arrives at the consignee's destination.
Shipment Point A specific location from where goods will depart for movement.
Shipper's agent A firm that primarily matches up small shipments, especially single-traffic piggyback loads, to permit shippers to use twin-trailer piggyback rates.
Special Customs Invoice In addition to a commercial invoice, some countries require a special customs invoice designed to facilitate the clearance of goods and the assessment of customs duties in that country.
Spot Voyage A charter for a particular vessel to move a single cargo between specified loading port(s) and discharge port(s) in the immediate future. Contract rate ("spot" rate) covers total operating expenses, i.e., bunkers, port charges, canal tolls, crew's wages and food, insurance and repairs. Cargo owner absorbs, in addition, any expenses specifically levied against the cargo.
Stevedore Individual or firm that employs longshoremen and who contracts to load or unload the ship.
Stowage The placing of goods in a ship in such a way as to ensure the safety and stability of the ship not only on a sea or ocean passage but also in between ports when parts of the cargo have been loaded or discharged.
Surcharge An add-on charge to the applicable charges; motor carriers have a fuel surcharge, and railroads can apply a surcharge to any joint rate that does not yield 110 percent of variable cost.