Complete Glossary of
Marine Terms & Abbreviations
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Label Clause
There are two types of this clause in use in the marine market, both of which concern canned or similar goods where identification or sale may be affected by damage to the attached labels. In the event of contact with water the labels may be damaged or washed off.
- The most common form of the clause excludes claims for lost or damaged labels and limits the insurer’s liability to the cost of re-labelling and repacking the goods.
- The little used form of the clause excludes claims for lost or damaged labels unless caused by the vessel being stranded, sunk, burnt, on fire or in collision or contact with any substance other than water.
Lagan
Cargo thrown overboard, but buoyed so that it may he recovered.
Laker
A vessel specially constructed for navigation in the waterways of the Great Lakes and canal systems of North America.
Landed Value
Wholesale market value at the point of destination on the final day of discharge.
Landfall
First sight of land, approaching from seaward
Landing Charges
Charges payable on cargo at the port of destination. These include expense of unloading, temporary warehousing, duty and freight, if this is payable at destination. Particular average claims are calculated on the gross value which is the actual value of the cargo when sold or delivered at destination and therefore includes landing charges. The net value of goods is the gross value less the landing charges.
In the case of general average or salvage it should be noted that the landing charges would not be paid if the goods did not arrive at the destination port, hence they have not been saved by the general average or salvage act. The adjustments for general average or salvage contribution must, therefore, be calculated on net values.
Lashing
securing by rope
Latent Defect
A hidden flaw or defect in the construction of the ship which is not readily discernible by a competent person using reasonable skill in an ordinary inspection.
Lay-up Return
Part of the annual premium on a ship time policy paid back to the assured by the underwriters because the ship has been laid up and not exposed to full navigational risks for a minimum period, usually not less than 30 consecutive days.
Such return is not paid until the natural expiry date of the policy and is forfeit if the vessel becomes a total loss before such date.
LAY DAYS
Days allowed by charter for loading or discharging cargo. The term is applied, also, to the days a ship occupies a dry dock.
Lazy
Sailing term, meaning 'extra' or 'spare'
Lead line
Marked line of rope, weighted by a lead line, for measuring the depth of water. (Often the lead line had a ball of wax on the bottom side, so the crew on board the ship could tell the composition of the sea bottom).
Leadage
The cost of transporting coal from colliery to place of shipment.
Leading marks / lights
Marks or lights, which when brought into a line of sight, indicate channel or best navigable water
Leakage
Ordinary leakage is the natural loss expected to occur in liquids by reason of evaporation, soaking into the container or other natural causes. If there is a loss of liquid cargo where the container is intact and where no peril has operated, this is usually due to ordinary leakage.
Lee shore
Shore on to which the wind is blowing
Leech
The trailing (aft) edge of a sail
Leeward
The side of the vessel further from the wind (opposite to windward).
Leeway
The sideways movement of a vessel, blown by the wind
Legal Expenses
It is the duty of a cargo owner to claim against the carrier for damage for which the carrier is liable and if, with the insurer’s consent, a law suit is pressed the legal expenses so incurred are payable by the insurer. The legal expenses in defending a claim made against the insured are also paid by the insurer if they are for the purpose of minimising a loss recoverable under the policy, such as would arise under the collision clause in a hull policy.
Legality Of The Adventure
There is an implied warranty of legality in every marine insurance contract whereby the adventure must be lawful at commencement and must be legally prosecuted throughout. A breach of this warranty discharges the insurer from liability as from the date of the breach. This warranty of legality is specified in the UK Marine Insurance Act.
Letter of Credit
Method of payment between buyer and seller. The buyer opens a Letter of Credit in favour of the seller at his local bank by depositing the amount of the purchase price and dictating certain documents which the seller must present in order to obtain a payment. The Letter of Credit will be sent to a bank in the vicinity of the seller and upon presentation of the documents called for, the local bank will release payment.
Letter Of Indemnity
This is a document which is given to a party of whom it is required that an unqualified guarantee be given when the circumstances demand a qualified guarantee.
Lien
A lien is a legal right whereby a person may prevent another from taking possession of property until the other person has satisfied a liability due to the person with the lien.
A shipowner has a lien on cargo in respect of which a general average deposit is payable. A salvor has a maritime lien a salved property in respect of the salvage award due to him. A carrier has a lien on cargo for which freight is due. A broker has a lien on a policy for unpaid premiums.
Lift
a wind shift allowing a sailing boat to point higher (i.e. nearer to the intended direction) - opposite to a 'header'. Also, a rope that supports a spinnaker pole
Light Dues
Moneys collected by the U.K. Customs on behalf of Trinity House for the maintenance of lighthouses and buoys. Dues are levied on vessels according to their net registered tonnage.
Lighterage
The price paid for loading or unloading ships by lighters or barges.
Limber Hole
A drainage hole in a ship.
Limited Terms
An insurance expression meaning that the policy gives less cover than a policy on full conditions (eg total loss only).
Line Slip
A signing slip issued off a long term cover.
Liner
Vessel plying a regular trade/defined route against a published sailing schedule i.e a ship on a regular schedule calling at specified ports.
Liner Terms / Berth Terms
A liner (or berth) term shipping rate indicates that the shipping company will organise stevedoring onto and out of the ship.
This is the standard type of freight rate for most ships picking up general cargo.
It particularly applies to any containerised cargo but not always to bulk-break (loose) cargo and therefore an exporter / importer should check this with shipping / forwarding agents.
Liquidation (of a company)
If a company is in liquidation then it is in the course of being wound up and the assets sold to defray the debts.
A liquidator is a person appointed to carry out the winding up of a company. The duties of a liquidator are to realise the assets and the property of the company, to pay its debts and to distribute the surplus, if any.
See Receivership. Liquidation will fall within "insolvency or financial default of exclusion cl;ause 4.6 of ICC(A).
List
Angle of heel of a vessel in the water, usually due to a vessel stability problem i.e. the angle away from the usual 90º upright floating position.
Lloyd's Agents
Persons or companies appointed by the Corporation of Lloyd's and stationed in most world ports. One of their many functions is to provide a surveying service, safeguard Lloyd's interests and report the movements and losses of ships.
Lloyd's Broker
An intermediary who negotiates insurance contracts with Lloyd's underwriters on behalf of his clients, the assured. For a broker to be admitted as a Lloyd's broker he must satisfy the Committee of Lloyd's that he is a suitable person to become a Lloyd's broker.
Only Lloyd's brokers and their nominated substitutes (holding a valid Lloyd's security pass) are permitted to enter the underwriting room at Lloyd's to transact business with underwriters.
Lloyd's Register Of Shipping
An independent non-profit-making Society. It undertakes surveys and classification of vessels; also produces various annual publications.
Lloyd's Rep.
Lloyd's Law Reports
LMX
London Market Excess-of-loss
LO-LO - Lift-On/Lift Off
A containership onto which and from which containers are lifted by crane (as opposed to Ro-Ro).
Load Line
The Load Line, sometimes called the Plimsoll Line or "marks", indicates the depth in the water down to which a ship may be loaded; the position of these marks is governed by international convention and is calculated by a Classification Society surveyor.
Location Clause
A clause in a cargo insurance contract limiting insurance cover at any location during transit when the goods are not on the oversea vessel. The intention is to restrict accumulation of risk in one location, and normally applies to open cover conditions.
Loom
[of a light]: reflection in the sky; or the inboard end of an oar
LOP
Loss of profits
Loss Of Specie
A change in the character of cargo which, in insurance terms, is effectively an actual total loss.
Loss of specie occurs where the insured property is so damaged that it ceases to be a thing of the kind insured, that is, it changes its specie. An example would be cement which when immersed in seawater becomes concrete.
Lost Of Not Lost
The provision appears in most marine policies automatically. The expression means that the risk attaches to the policy even though at the time of acceptance by the insurer the property may have been lost. The acceptance by the insurer on these terms is conditional on the insured advising the insurer of any known loss prior to acceptance. The insured cannot acquire an insurable interest after loss if he is aware of the loss, so that he cannot insure a known loss, even by advising the insurer, if he had no interest at the time the loss occurred. The purpose of the provision is to facilitate the continuance of insurance cover on goods as the title changes hands and so that the insured shall not be prejudiced by a loss of which he is unaware at the time of effecting the insurance.
Luff
To luff: to sail closer to the wind (sometimes the sails 'flap')
Lump Sum Freight
A fixed freight rate, regardless of how much cargo is loaded.
L.A.U.A.
Lloyd's Aviation Underwriters' Association
L.D.P.I.
Latent defects protection insurance
L.H.A.R.
London, Hull, Antwerp or Rotterdam
L.J.
Lord Justice
l.n.y.d.
Liability not yet determined
L.O.C.
Letter of credit
L.R.
Lloyd's Register
L.R.M.C.
Lloyd's refridgeration machinery certificate
L.S.
Livestock, Locus siggilli (place for seal)