Glossary

To facilitate a better understanding of FSL Trust's business, the following glossary provides an explanation on some of the technical terms and abbreviations commonly encountered in the context of FSL Trust's business. The terms and their assigned meanings may not correspond to standard industry meanings or usage of these terms.

bareboat charter
Contract whereby the shipowner leases its vessel to the charterer for a period of time during which the whole use and all costs and responsibilities of operating and maintaining the vessel passes to the charterer and involves the charterer paying all expenses for maintaining its own master and crew on board of the vessel

Classification Societies
Independent societies which certify that a vessel has been constructed and maintained in accordance with the rules of such society and complied with the applicable acts and regulations of the flag state of such vessel and the relevant international conventions

dwt
Deadweight ton � a unit of a vessel's capacity for cargo, fuel oil, stores and crew, measured in metric tons of 1,000 kilograms. A vessel's DWT or total DWT is the total weight the vessel can carry when loaded to a particular load line

flag state
The country in which a vessel is registered. A vessel is generally required to fly the sole flag of a registered country

IACS
International Association of Classification Societies

IMO
International Maritime Organisation

IMO Regulations
The international conventions, rules and regulations adopted by IMO

ISM Code
International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention

ISPS Code
The International Ship and Port Facility Security Code

"in class"
Where a vessel is certified by a Classification Society as being "in class," it means that the vessel has been built and is being maintained in accordance with the rules of the Classification Society and complies with applicable rules and regulations of the vessel’s country of registry and the international conventions of which that country is a signatory

LL
The International Convention on Load Lines

MARPOL
International Convention for the Prevention of Pollution from Ships

newbuilding
A vessel which is under construction

operating costs
The costs of technical operations of vessels including the costs of lubricants, spare parts, repairs and maintenance, crewing costs and insurance costs (but excluding capital costs and voyage costs)

P&I
Protection and indemnity. This denotes the insurance coverage taken by a vessel’s owner or charterer against third party liabilities such as oil pollution, cargo damage, crew injury or loss of life, etc.

P&I Association
A mutual insurance association providing P&I insurance coverage, ship management, administration, operations and general management of a vessel, including technical operations, repair, maintenance, crewing and insurance

Time Charters
Time charters are contracts whereby a vessel is let to a charterer for a stipulated period of time. In such an arrangement, while the time charterer will be liable for voyage costs (fuel and port charges), the shipowner remains responsible for the operation and maintenance of its own vessel and bears all costs relating to operating the vessels. With time chartered vessels, the level of investment from the charterers is limited to the rental charges and voyage costs for the vessel. Conversely, the shipowner will be subject to various potential risks that may add to overall ship management costs.