Contract of Affreightment, a long-term agreement between a shipper and a shipowner to transport a specified quantity of cargo over a given period, with individual shipments made on vessels nominated by the owner. COAs provide cargo volume certainty for shipowners and freight rate stability for shippers.
Also known as: Contract of Affreightment.
Category: Cargo & Trade
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Break BulkCargo that is shipped as individual pieces or packages rather than in containers, including items such as steel, lumber, project cargo, heavy machinery, and bagged goods.BunkerMarine fuel used to power a vessel's main engines and auxiliary machinery.CIFCost, Insurance and Freight, an Incoterm under which the seller delivers the goods on board the vessel and pays the cost of freight and marine insurance to the named destination port.ContainerizationThe system of transporting goods in standardised intermodal containers that can be efficiently transferred between ships, trucks, and rail cars without handling the cargo itself.CustomsThe government authority responsible for controlling the import and export of goods at ports, collecting duties and taxes, and enforcing trade regulations.Dead FreightA charge payable by the charterer for the unused cargo space when the agreed quantity of cargo is not provided for loading.
Back to DictionaryEntry updated May 2026