Glossary
Trade, shipping and banking terms as PALBONTradeFinance uses them.
| Term | Meaning |
|---|---|
| 46A | The credit's list of documents required (SWIFT field 46A) |
| 47A | The credit's additional conditions (SWIFT field 47A): wording rules the documents must meet |
| 71D | The credit's charges clause: who pays which bank charges |
| ADB, ARB, DB, GAR, NAR | Coal quality bases: air-dried, as received, dry, gross as received, net as received |
| Addendum | A signed change to a contract after signing (ADD I, ADD II…) |
| All-in cost | A bank quote's or funding offer's total cost: commissions, interest and fees |
| Applicant | The party that asks its bank to open a credit (the buyer) |
| AWB | Air waybill number of a courier consignment |
| Back-to-back | Buying and selling the same cargo, each side a leg of one trade |
| Beneficiary | The party paid under a credit (the seller) |
| Beneficiary's certificate | The beneficiary's own statement the credit asks for (for example that copies were e-mailed) |
| Bill of exchange (draft) | The payment order drawn on the bank under the credit (42C tenor, 42A drawee) |
| B/L | Bill of lading: the carrier's receipt and title document; its date starts the presentation clocks |
| Charter party | The contract for the hire of the vessel |
| COA / CoSA | Certificate of (sampling and) analysis |
| COHC | Certificate of hold cleanliness |
| COO | Certificate of origin |
| COW | Certificate of weight |
| Despatch | Money the shipowner (or seller) pays for loading faster than laytime allows |
| Demurrage | Money owed for using more time than laytime allows |
| Deviation | A term where one leg's contract differs from the other's |
| Discrepancy | A way a presented document does not comply with the credit |
| DSR | Draft survey report: the cargo weight by the vessel's draft |
| Exposure | What a credit holds on a bank facility: its amount plus tolerance |
| Facility | A bank's limit for credits, guarantees or loans |
| FCA, FOB, FOBT | F-terms: the buyer arranges the carriage |
| CFR, CIF | C-terms: the seller pays the carriage (and insurance on CIF) |
| Framework contract | A long-term agreement that individual shipments call off |
| Free pratique | Permission from the port health authority for the vessel to enter and work |
| GCV | Gross calorific value of coal (kcal/kg) |
| ISM | International Safety Management code compliance of a vessel |
| KYC | Know your customer: the checks before trading with a party |
| Laycan | The window (lay days and cancelling) within which the vessel must arrive |
| Laytime | The time allowed to load or discharge |
| Leg | One side of a trade: the purchase or the sale |
| Maximum amount | A credit's amount plus its tolerance (39A) |
| MT700, MT707, MT760, MT767 | SWIFT messages: issue of a credit, amendment of a credit, issue of a guarantee, amendment of a guarantee |
| NN documents | Non-negotiable copies sent directly to the buyer |
| NOR | Notice of readiness: the master's notice that the vessel is ready to load or discharge |
| Novation | Transfer of a contract's rights and duties to a new party |
| P&I Club | The vessel's protection and indemnity insurer |
| PEP | Politically exposed person |
| Presentation | Delivering the documents to the bank under a credit |
| Price formula | How a quality result changes the price, with caps and rejection limits |
| Rejection limit | The quality value beyond which the buyer may reject the cargo |
| SHINC, SHEX, SATPM, FHEX | Laytime terms: Sundays and holidays included / excluded; excluded from Saturday noon; Fridays and holidays excluded |
| Sight, usance | A credit paid on presentation, or a number of days later |
| SOF | Statement of facts: the vessel's timed events in port |
| Tolerance | The allowed difference in quantity or amount (for example ±10%) |
| UBO | Ultimate beneficial owner |
| UCP 600, ISP98, URDG 758 | The ICC rules for documentary credits, standby credits and demand guarantees |
| WIBON, WIPON, WIFPON, WCCON | Whether in berth / in port / in free pratique / customs cleared or not: laytime counts while waiting |
| WPD, WWD | Weather permitting day, weather working day |