Glossary

a

AIS-Automatic Identification Systems

Automatic identification system (AIS) transponders transmit a ship’s position, identification number, and accompanying details about the ship.

b

Blank Sailing

What is Blank Sailing? Blank sailing is the act of skipping a scheduled stop at a port, or canceling the voyage entirely. The decision is typically made by the carriers to effectively manage vessel capacity, respond to changes in cargo demand, optimize the global shipping network, or reduce unnecessary costs. Understanding Blank Sailing When shipping…

c

Carriage Paid To (CPT)

What is “Carriage Paid To” (CPT)? “Carriage Paid To” (CPT) is an Incoterm used in maritime shipping and international trade. It places the responsibility on the seller to arrange and pay for the transportation of goods to a specific destination. The seller assumes the risk and cost of delivering the goods to the carrier or…

Carrier Performance

What is Shipping Carrier Performance? Carrier performance usually refers to how a maritime carrier manages to execute on its responsibilities, often based on shippers’ standards and expectations. Ideally, carriers are expected to improve logistics, while streamlining the shipping process. Criteria – such as timeliness, communication, compliance, and invoice accuracy – are included in the carrier…

Complex Ship Ownership or Management

OFAC Definition (Guidance to Address Illicit Shipping and Sanctions Evasion Practices); Global shipping is inherently complex and involves multiple interactions with both government and private sector entities. Bad actors attempt to take advantage of this complexity through the use of complex business structures, including those involving shell companies and/or multiple levels of ownership and management,…

Compliance risk management

What is compliance risk management? Compliance risk management in the maritime industry is the process of identifying, assessing, and mitigating the risks associated with non-compliance with laws, regulations, sanctions, and standards that apply to the industry. This includes risks related to crew and cargo safety, environmental protection, labor standards, and the countries where cargo is…

Container Tracking

What is Container Tracking? “Container tracking” has many meanings and applications across the logistics/supply chain industry, often depending on which person or organization you are speaking with. Container tracking uses technology to monitor the location and status of shipping containers throughout their journey from the port of loading to the port of discharge. It can refer…

Cost and Freight

What is Cost and Freight? Cost and Freight (CFR) is an Incoterm used in maritime shipping and international trade. Under this term, the seller assumes responsibility to arrange and pay for the transportation of goods to a specified destination port. But, the risk of loss or damage to the goods is transferred from the seller…

Cost, Insurance, and Freight (CIF)

What is Cost, Insurance, and Freight (CIF)? Cost, Insurance, and Freight (CIF) is an Incoterm commonly used in maritime shipping and international transaction contracts. Under CIF terms, the seller is responsible for arranging and paying for the shipping of goods to a destination port and insuring the goods while they are in transit. Once the…

Counterparty Risk

What is counterparty risk? Counterparty risk, also called default risk, refers to the likelihood that a participating party in a financial transition may fail to fulfill its contractual obligations. Counterparty risks include all parties involved in a transaction and exist in investments, market conditions, exposure, lines of credit, and trading transactions. Who is exposed to…

d

DAP Shipping (Delivered at Place)

What is DAP Shipping? “Delivered at Place shipping,” also known as DAP shipping, is an international trade term used to describe a deal where the ownership of a product is transferred from the seller to the buyer. DAP shipping was first introduced as an International Commercial Term (Incoterm) in 2010 by the International Chamber of…

Dark Activity

This term refers to the situation in which a vessel’s AIS transmission signals are no longer being broadcasted or detected.

Dark and Gray Fleets

What is the Dark Fleet? The dark fleet refers to tankers that engage in dark activities, such as disabling their AIS, or using deceptive shipping practices – like GNSS manipulation, ID and location tampering – to transport crude oil, chemicals, and other wet cargo. The fleet is characterized by weak ownership structures and the use…

Deceptive Shipping Practices

Deceptive shipping practices are usually used to evade sanctions.

Decision Support System

What is a Decision Support System? A decision support system (DSS) provides data, analysis, and insights to organizations, to help guide their decision-making process. It integrates information from multiple sources, applies analytics and modeling techniques, and presents the data in a user-friendly way. Most platforms include features such as data visualization, advanced analytics, and collaboration…

Deep Dark Activity

This term, coined by Windward, refers to vessels that conduct long periods of dark activity in correlation with vessel behavior.

Delivery Duty Paid (DDP)

What is DDP? Delivery duty paid (DDP) is a delivery agreement where the seller (exporter) is responsible for the shipment and for all potential risks and costs, until the shipment reaches its final destination. The potential costs ”include all transportation costs, any loss due to damage during transit, and the payment of customs duties, import…

Demurrage Fees

What is Demurrage? Demurrage is a fee charged to the consignee when the organization fails to retrieve their containers or cargo from the port within the allotted free time period. This free time, typically ranging from two to seven days, is an agreed-upon time period during which the containers can remain at the port without…

Detention Charges

What are Container Detention Charges? Detention charges are container-related charges that consignees may be responsible for paying once a container has been offloaded from a vessel. After the container is removed from the port, the consignee is granted a specified number of “free days” to transport, unload, and return the container to the port. If…

Dual Transmission

What is dual transmission? Dual transmission in the maritime industry refers to the use of multiple AIS transmitters on board a single vessel transmitting different entities with separate IMOs. This is typically used by bad actors to spoof their real location, while participating in illicit activities or deceptive shipping practices. Dual transmission is an illegal…

e

ESG

What is ESG? ESG is a general term that stands for environmental, social, and governance. A company with a high ESG score typically invests resources that positively impact its surroundings. Understanding exactly what ESG is can have a significant effect on a company. Even though it may not appear on financial reports, it creates accountability…

Energy Risk Management

What is energy risk management? Energy risk management minimizes the risks involved in the movement or shipment of energy commodities. Managing risks associated with the energy industry is becoming increasingly complex, due to various factors, such as sanctions, evolving deceptive shipping practices, and world events. Energy risk management means determining, assessing, and prioritizing risks associated…

Enhanced Due Diligence (EDD)

What is enhanced due diligence (EDD)? Enhanced due diligence (EDD) is a process used in the maritime industry to identify and reduce potential risks related to compliance, fraud, and money laundering. Enhanced due diligence involves conducting a thorough background check of a company’s operations, financial status, and reputation to ensure they are compliant with relevant…

Estimated Time of Arrival (ETA)

What is Estimated Time of Arrival (ETA) for Maritime? Estimated time of arrival (ETA) in the maritime industry refers to the approximate time that a vessel is expected to arrive at its destination port. It is an essential element of the shipping process, as it allows shippers, carriers, and port operators to plan and coordinate…

Ex Works

What is Ex Works? “Ex Works” (EXW) is an Incoterm that designates the buyer and seller’s terms in the shipping process. The seller is required to make the product available at a specific location, while the buyer is responsible for the transportation costs. EXW places the burden of risks and expenses on the buyer once…

Exception Management

What is Exception Management? Exception management (also called “management by exception”) refers to the process of identifying, analyzing, and resolving anomalies that occur during the shipping process. These exceptions can include any event that changes the arrival time, such as lost containers, port congestion, or damaged goods, each of which can disrupt the supply chain….

f

Financial Crime Risk

Fraud, corruption, money laundering, and sanctions violations are all examples of risks that have the potential to cause financial and reputational damage to organizations.

Flag Hopping

Flag hopping was defined by OFAC as “repeatedly registering with new flag states to avoid detection.” But registration changes are also commonly used as a legitimate financial tactic, making it difficult to label as an illicit activity. This makes malicious flag hopping well-concealed in a sea of legitimate flag hopping.

Flag of Convenience

This term refers to flags other than the one belonging to a ship owner’s flag state. Owners will often register with a flag of convenience to take advantage of lower taxes, reduced regulation, or administrative fees.

Free Alongside Ship (FAS)

What is Free Alongside Ship Incoterm (FAS) Free Alongside Ship (FAS) is one of eleven Incoterms used in ocean freight to clearly assign responsibility to the buyer and seller. A FAS contract stipulates that the seller is responsible for delivering the goods to a point of departure, but not a container terminal. Once the goods…

Free Carrier (FCA)

What is Free Carrier (FCA)? Free carrier (FCA) is an Incoterm, or international trade term, that defines the seller’s responsibility for delivering goods to a named place or carrier specified by the buyer. Under this contractual arrangement, the seller fulfills their obligation by handing over the goods, cleared for export, to the carrier or another…

Freight Transport

What is freight transport? Freight transport is the movement of goods from one place to another. Common freight includes commercial goods, commodities, and merchandise in bulk. “The main transport mode for global trade is ocean shipping: around 90% of traded goods are carried over the waves. As such, the oceans provide the main transport arteries…

Freight on Board (FOB) Shipping

What is Freight on Board (FOB) shipping? Freight on Board (FOB), is an international commercial term (Incoterms®) indicating the point where costs of shipping and liability of goods transfers from the seller to the buyer. The term, which was defined as part of the International Chamber of Commerce’s (ICC), is the most common agreement when…

g

h

i

IUU fishing

What is IUU fishing? Illegal, unreported, and unregulated (IUU) fishing refers to fishing activities carried out in violation of local or international laws and regulations, without proper reporting or oversight. These activities can include fishing in protected areas, using prohibited gear, or catching protected species. IUU fishing can negatively impact fish stocks and marine ecosystems,…

Identity Tampering

According to C4ADS, identity tampering is the deliberate falsification of a vessel’s broadcasted data on AIS and/or alterations to its physical features, to misrepresent its identity.

Insolvency Risk

The likelihood that a company will be unable to meet its debt obligations and therefore bankrupts. Insolvency risk is a measurement representing the probability of a company becoming insolvent as a result of its inability to service its debt. Investors often consider a firm’s insolvency risk prior to making equity or bond investment decisions. Firms…

j

Just In Time (JIT)

What is just-in-time (JIT) for logistics? In transportation and freight, just-in-time (JIT) refers to an inventory control system that manages the material flow into assembly and manufacturing plants by coordinating demand and supply so desired materials arrive “just-in-time.” “When first developed in Japan in the 1970s, the idea of just-in-time (JIT) marked a radical new…

k

KYV™ (Know Your Vessel)

KYV is a term coined by Windward to describe the process of vetting vessels for sanctions risk.

l

List Screening

What is List Screening? List screening is the process of identifying individuals, companies, or organizations appearing on various watchlists, such as politically-exposed persons (PEP) lists, sanctions lists, and adverse media lists. The goal of list screening is to locate potential risks and threats that are connected to the screened people or organizations, so you can…

Location Tampering (GNSS)

Location tampering – global navigation satellite system manipulation – is the use of a machine-generated location/path to disguise the true location of the vessel. Multiple methods have been identified to carry out this deception, including false transmission onboard the vessel and third-party onshore accomplices.

m

Maritime AI™

Maritime AI is a term for machine learning models uniquely attuned to maritime nuances and data.

Maritime Domain Awareness

“In May 2022, U.S. President Joe Biden announced the Indo-Pacific Partnership for Maritime Domain Awareness (IPMDA), an initiative with regional partners and allies to promote a free and open Pacific. The IPMDA intends to connect regional partners and allies with American technologies to provide greater maritime situational awareness in real-time,” as reported by The Diplomat. …

Maritime Law Enforcement

Conflicts, such as the Russia-Ukraine war, combined with the technological advancement of bad actors, have placed a burden on maritime law enforcement bodies. Criminals have progressed beyond merely disabling their automatic identification systems (“dark activity”), so maritime law enforcement agencies are now coping with sophisticated methods, such as GNSS spoofing, ID tampering, zombie vessels, and…

Maritime Risk Intelligence

What is maritime risk intelligence? Many risks have emerged in the maritime ecosystem, involving the vessel, crew, and/or cargo. Maritime risk intelligence, which includes a combination of maritime data and domain expertise, can help predict these potential maritime risks and protect your business, or organization. Actionable maritime intelligence is key to enhancing compliance risk management,…

Maritime Trade

What is Maritime Trade? Maritime trade is the transport of goods overseas between two countries. It is a low-cost, efficient method of transporting items manufactured, grown, or mined from one country to another and is an essential ingredient in the growth of the world’s economy and in developing nations. In today’s economy, 80 percent of…

n

o

OFAC (Office of Foreign Assets Control) Advisories

The OFAC (Office of Foreign Assets Control) advisories aim to help enforce economic and trade sanctions against certain regimes, sectors, entities, or individuals.

OTIF Supply Chain

What is Supply Chain OTIF? On-time, in-full (OTIF) is a key supply chain metric. It measures a supplier’s ability to have goods delivered to their distribution centers, often via freight transport, on time and at the full quantities ordered. OTIF shows the supplier’s ability to deliver on its promise and build trust with buyers. In…

Ocean Analytics

What is Ocean Analytics in the Maritime Industry? Ocean analytics refers to the systematic use of data analysis techniques to optimize various aspects of maritime shipping and logistics operations, including but not limited to ship movements, cargo, vessel characteristics, weather conditions, and compliance with international regulations. The objective of these analytics can be diverse, ranging…

Oil Smuggling

Oil smuggling is a tactic that sanction evaders use to turn a profit from oil exports that U.S. sanctions designate as illicit.

p

Physical Alteration of Vessel Identification

According to the OFAC Definition (Guidance to Address Illicit Shipping and Sanctions Evasion Practices): Passenger ships of 100 Gross Tonnage (GT) and upwards and cargo ships of 300 GT and upwards are required to display their name and IMO number in a visible location on the vessel’s hull or superstructure. A vessel’s IMO number is…

Predictive Intelligence

What is Predictive Intelligence in the Maritime Industry? Predictive intelligence is one of the most important technological advances in the maritime industry. It uses artificial intelligence (AI) methods and advanced analytics to track billions of data points that are helpful in identifying maritime trends and forecasting future events or outcomes. Not only does it help…

q

r

Real-Time Transportation Visibility Platforms

What is a real-time transportation visibility platform? Real-time visibility is essential for live tracking a shipment through its complete lifecycle. It accounts for numerous issues that can affect the estimated time of arrival (ETA), such as weather delays, customs issues, and traffic. A real-time transportation visibility platform provides these updates. It collects data from the…

s

SDN List

The SDN (Specially Designated Nationals And Blocked Persons) list is OFAC’s list of individuals and companies whose assets are blocked and U.S. persons are generally prohibited from dealing with.

Sanctions Screening

What is sanctions screening? Sanctions screening is the process of checking whether an individual or entity is listed on a sanctions list, or watchlist. These lists are compiled by governments and recognized international organizations to identify individuals or entities subject to financial sanctions, or other restrictions, as a result of their actions or associations. Working…

Ship-to-Ship (STS) Meetings

When two ships meet at sea. The encounter might be for fueling, transshipments of cargo such as oil or fish, to change crew, let a pilot on board, and more.

Shipment Tracking

What is Shipment Tracking? Shipment tracking refers to the process of monitoring and tracing the movement of cargo or goods during the shipping process. By utilizing advanced tracking technologies such as AI, stakeholders can obtain real-time information about the location and status of freights. Shipment Tracking’s Essential Role in the Maritime Industry Shipment tracking plays…

Shipping Delays

Why Shipping Delays Occur & How to Improve ETAs “Visibility is critical to the supply chain. Knowing your shipment is delayed is a necessity, but knowing why your shipment was delayed further empowers customers to take action, save costs, and minimize the business impact of delays,” according to Ami Daniel, CEO and Co-Founder of Windward….

Supply Chain Visibility

What is Supply Chain Visibility? Supply chain visibility is the ability to track every part of the supply chain journey. Modern-day supply chains are extremely complex and difficult to track, with a diverse supplier network around the world. Supply chain visibility is critical for logistics professionals, freight forwarders, and any organization that needs to track…

Support Fleets and Forced Labor

Support Fleets and Forced Labor in IUU Fishing Illegal, unreported, and unregulated (IUU) fishing is a growing problem that occurs around the world, and is used to assert regional dominance. Vessels, crews, and companies use support fleets to bring over fishermen, often migrant workers, and coerce them into assisting with illegal fishing under harsh conditions….

t

Three Lines of Defense

Three Lines of Defense is an effective internal auditing model designed to offer a framework for improved control across an organization by developing a greater understanding of the risks and controls. This identifies and articulates the collection of risks and controls, and appropriately allocates the ownership and performance to these across various ‘lines of defense’,…

Tipping and Cueing

What is Maritime Tipping and Cueing? Tipping and cueing is a technique that uses satellite monitoring to identify and track large objects. The process begins with a low-resolution satellite sensor that scans a wide area, such as the ocean. After a “tip” has been generated, the data is relayed to a team or AI system…

Transshipment

What is transshipment? Understanding the Supply Chain Challenge Transshipment is a complex supply chain challenge that involves the transportation of cargo or a container from one vessel to another, while in transit to its final port of discharge (POD). Transshipping commonly happens when the cargo can’t reach its final destination through a direct route. A…

u

UN Panel of Experts

The Panel was established in 2009 to conduct sanctions assessments and recommendations for the Security Council.

Ultimate Beneficial Owner (UBO)

What is a UBO? Ultimate beneficial owner (UBO) is a legal term for the person that owns or controls a legal entity, such as a ship. This person is the one that ultimately profits from each transaction, even if they aren’t documented as the legal owner. It isn’t always easy to determine who the ultimate…

v

Vessel Tracking

What is Vessel Tracking? Vessel tracking is the ability to detect, identify, and monitor a ship’s location, and map the full details of the entire route. GPS pinpoints a vessel’s location, which is essential for tracking bad actors, and for the ship to navigate. Other systems, such as the ship’s automatic identification system (AIS) transponders,…

Vessel Vetting

What is vessel vetting? Vessel vetting is a process of evaluating and assessing the suitability of a vessel for a particular purpose, such as carrying a certain type of cargo, or operating in a specific region. This evaluation typically involves a review of the vessel’s technical and operational characteristics, and its safety and compliance record….

Voyage Irregularities

The OFAC Definition (Guidance to Address Illicit Shipping and Sanctions Evasion Practices) Malign actors may attempt to disguise the ultimate destination or origin of cargo or recipients by using indirect routing, unscheduled detours, or transit or transshipment of cargo through third countries. Although transit and transshipment are common in the global movement of goods, private…

w

What is freight on board (FOB)?

Freight on Board (FOB) is an international commercial term (Incoterm®) indicating the point where costs of shipping and liability of goods transfers from the seller to the buyer. The term, which was defined as part of the International Chamber of Commerce’s (ICC), is the most common agreement when shipping internationally. The FOB, also known as…

x

y

z

Zombie Vessels

Zombie vessels are vessels that were scrapped yet ‘reappear’ somewhere later on.

Popular terms