Maritime & Energy Glossary
Key terms for understanding the Hormuz crisis
AIS
Automatic Identification System — a tracking system used on ships and by vessel traffic services to identify and locate vessels by exchanging electronic data with nearby ships, AIS base stations, and satellites.
Aframax
A tanker of 80,000-120,000 DWT. The name derives from the Average Freight Rate Assessment (AFRA) system. Aframax tankers are typically used for short- to medium-haul crude oil transport.
Bab el-Mandeb
The "Gate of Tears" — a strait between Yemen and Djibouti/Eritrea connecting the Red Sea to the Gulf of Aden. Another critical chokepoint that affects Suez Canal traffic.
Barrel (bbl)
A unit of volume equal to 42 US gallons or approximately 159 liters. The standard unit for measuring oil production and trade volumes.
Brent Crude
A light sweet crude oil that serves as the international benchmark for two-thirds of the world's oil pricing. Extracted from the North Sea between the UK and Norway.
Bunkering
The supply of fuel (bunker fuel) for use by ships. Major bunkering ports include Singapore, Fujairah, and Rotterdam.
Cape of Good Hope
The southern tip of Africa, the alternative route when the Suez Canal or Strait of Hormuz is impassable. Adds 12-14 days to a typical Gulf-to-Europe voyage.
Chokepoint
A narrow passage through which vital maritime trade must pass. The world's major oil chokepoints include Hormuz, Malacca, Suez, Bab el-Mandeb, and the Turkish Straits.
DWT
Deadweight tonnage — the total carrying capacity of a ship, including cargo, fuel, provisions, and crew. The standard measure of tanker size.
ESPO Pipeline
Eastern Siberia-Pacific Ocean pipeline — Russia's crude oil export pipeline to Asian markets, particularly China. Capacity: 1.6M bbl/day.
LNG
Liquefied Natural Gas — natural gas cooled to -162°C for transport by specialized tanker ships. Cannot be piped through conventional oil pipelines.
P&I Club
Protection and Indemnity Club — a mutual insurance association that provides risk pooling, information, and representation for shipowners. The 13 members of the International Group cover approximately 90% of world tonnage.
SPR
Strategic Petroleum Reserve — government-controlled stockpiles of crude oil maintained for emergency use. The US SPR holds 680M barrels; Japan holds ~210M barrels.
Suezmax
A tanker of 120,000-200,000 DWT, sized to pass through the Suez Canal when fully loaded. The name reflects the canal's maximum vessel dimensions.
TEU
Twenty-foot Equivalent Unit — the standard measure of container ship capacity. One TEU represents one standard 20-foot shipping container.
TTF
Title Transfer Facility — the Dutch virtual trading point for natural gas. The primary European gas benchmark, analogous to Henry Hub in the US.
VLCC
Very Large Crude Carrier — a tanker of 200,000-320,000 DWT. The workhorse of long-haul crude oil transport, typically carrying 2M barrels per voyage.
War Risk Premium
An additional insurance premium charged when a vessel transits a war-risk zone. Premiums are calculated as a percentage of the vessel's hull value per transit.
WS (Worldscale)
The Worldwide Tanker Nominal Freight Scale — a standard system for quoting tanker freight rates. WS 100 represents the baseline rate for a given route.
WTI
West Texas Intermediate — a light sweet crude oil that serves as the primary benchmark for US oil pricing. Traded on NYMEX.