15 chartering terms

Shipping & chartering glossary

Plain-English definitions of the terms behind every fixture — the same concepts CharterDeck's AI reads, checks and compares.

BBallast voyage: A ballast voyage is the leg a vessel sails without cargo — typically from where it discharges to the next load port. Ballast distance and cost are central to whether a cargo is worth taking.
CCargo enquiry: A cargo enquiry describes a parcel a charterer needs to move — commodity, quantity and tolerance, load and discharge ports and the laycan — circulated to find suitable tonnage.
DDemurrage: Demurrage is the sum payable to the owner when the vessel is detained beyond the agreed laytime for loading or discharging. It compensates the owner for time lost.
DDespatch: Despatch is money paid by the owner to the charterer for finishing loading or discharging in less than the allowed laytime — the mirror of demurrage, usually at half the demurrage rate.
FFirm offer: A firm offer is a binding proposal of charter terms, open for acceptance for a stated time. Once accepted within that time (subject to any stated subjects), it forms the basis of a fixture.
FFixture: A fixture is a concluded charter: terms agreed and all subjects lifted. It is recorded in the recap and governs the voyage that follows.
FFreight rate: The freight rate is the price for carrying cargo, usually quoted per tonne or as a lump sum. It is only one input into total voyage economics — ballast, port, bunker and delay costs matter too.
LLaycan: The laycan (laydays / cancelling) is the agreed window during which a vessel must arrive at the load port and be ready to load. Arrive before laydays and the charterer need not accept the vessel yet; arrive after the cancelling date and the charterer may cancel the charter.
NNOR: The Notice of Readiness (NOR) is the master's notice that the vessel has arrived and is ready to load or discharge. A valid NOR starts the laytime clock, subject to the charter party terms.
OOpen vessel position: An open position is a statement of where and when a vessel becomes free (its open port and open date) together with its particulars, circulated so charterers can match cargo to it.
RRecap: A recap is the written summary of the agreed charter terms, capturing what was fixed so both sides work from the same record.
SSOF: The Statement of Facts (SOF) is the port record of events and times during loading or discharging. It is the primary evidence for calculating laytime, demurrage and despatch.
SStowage factor: The stowage factor is the volume a unit of cargo occupies (for example cubic metres per tonne). With a vessel's grain or bale capacity it determines how much cargo actually fits.
SSubject: A subject is a condition that must be lifted before a fixture is clean — for example subject to management approval, stem or survey. Open subjects mean the deal is agreed in principle but not yet firm.
VVoyage estimate: A voyage estimate projects the economics of a candidate voyage — distance, bunkers, port and canal costs, carbon and time — to compare options on total economics rather than the freight rate alone.

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