Water Taxi and Delivery Businesses Industry Terminology

AIS (Automatic Identification System)

A VHF-based transponder system that automatically broadcasts a vessel’s identity, position, course, and speed to improve situational awareness, traffic management, and safety.

- Check the AIS target before crossing the channel. - Our dispatch center monitors AIS to provide real-time ETAs. - Upgrade the fleet from Class B to Class A AIS on the busiest routes.

Annex VI (MARPOL Annex VI)

The international rules limiting air pollution from ships, including sulfur content in fuel, NOx emissions, and other air emissions controls, especially stringent within Emission Control Areas.

- We must switch to 0.1% sulfur fuel upon entering the ECA under Annex VI. - The new engines comply with IMO NOx Tier III requirements. - Annex VI reporting is due for our emissions inventory.

Asset Utilization

A measure of how effectively vessels and equipment generate revenue relative to their available time; higher utilization typically improves margins and capital efficiency.

- Increase asset utilization by adding peak-hour departures. - Night-time parcel runs lift utilization without adding hulls. - We track asset utilization as on-revenue hours over total available hours.

Berth

A designated place alongside a quay, pontoon, or dock where a vessel moors to load or unload passengers or cargo.

- Our water taxi has a 10-minute berth window at Pier 4. - The new berth has shore power and potable water. - Berth congestion after the fireworks delayed all departures.

Bunkering

The process of refueling a vessel, encompassing fuel transfer procedures, safety controls, and environmental precautions.

- Complete the bunkering checklist before refueling the catamaran. - We shifted bunkering to off-peak to reduce downtime. - Report any spills immediately during bunkering operations.

Cabotage

Laws governing domestic carriage of goods or passengers between ports within the same country, often requiring national build, ownership, and crewing.

- The route is cabotage, so we need a Jones Act-compliant vessel. - Foreign-built boats cannot perform this domestic leg. - Cabotage restrictions affect our pricing and fleet choices.

Charter Party

A formal contract setting terms and conditions for chartering a vessel, covering duration, payment, responsibilities, and operational limits.

- We signed a day charter party for a corporate shuttle. - The charter party specifies laytime, liabilities, and fuel arrangements. - Add a weather clause to the charter party for the regatta.

COLREGs (International Regulations for Preventing Collisions at Sea)

The globally recognized navigation rules that define responsibilities to avoid collisions, including right-of-way, lights, shapes, and sound signals.

- Maintain a proper lookout per COLREGs Rule 5. - The ferry had stand-on status under COLREGs. - Update the crew COLREGs refresher annually.

Crew Endurance Management

A systematic approach to reducing fatigue-related risk by managing work-rest cycles, environmental factors, and operational demands on crew.

- Stagger watch schedules to support crew endurance. - We use caffeine guidelines in our crew endurance plan. - Fatigue risk triggers a mandatory rest under the policy.

Customer Acquisition Cost (CAC)

The total marketing and sales cost required to acquire one paying customer; a key unit economic metric.

- CAC dropped after we launched the commuter pass. - Compare CAC to lifetime value to justify the ad spend. - Partnerships with hotels lower our CAC for tourists.

Deadweight Tonnage (DWT)

The maximum weight a vessel can safely carry, including cargo, fuel, water, stores, and crew, measured in metric tons.

- The launch’s DWT limits pallet loads to two per trip. - Fuel and water count toward DWT. - Check DWT before accepting heavy equipment cargo.

Draft (Draught)

The vertical distance between the waterline and the lowest point of the hull (keel); determines minimum water depth needed.

- Our draft at departure is 1.2 meters; the bar is safe. - Reduce draft by offloading freshwater before the shallow leg. - Draft marks should be verified during the yard period.

Dry Docking

Taking a vessel out of the water for inspection, maintenance, or repair of the hull, propulsion, and underwater fittings.

- The water taxi goes into dry dock next week for a hull survey. - We’ll complete propeller polishing during dry docking. - Dry docking slots are tight before tourist season.

Emission Control Area (ECA)

Designated sea areas with stricter controls on air emissions from ships, including lower sulfur fuel requirements and NOx limits.

- We plan fuel switching at the ECA boundary. - ECA rules drive our interest in hybrid propulsion. - Fines for ECA non-compliance are steep.

ETA/ETD (Estimated Time of Arrival/Departure)

Standard scheduling estimates used for planning, coordination with terminals, and customer communications.

- Update the ETA after the bridge opening delay. - Our SLA requires 95% on-time ETDs. - Passengers get ETA alerts via the app.

Flag State

The country in which a vessel is registered and whose laws govern its safety, environmental, and crewing standards.

- Our fleet’s flag state audits the SMS annually. - Crew certificates must match the flag state. - Switching flag states could alter inspection regimes.

Fleet Management System

An integrated software and hardware solution for tracking vessels, maintenance, compliance, fuel, and operations in real time.

- The FMS shows fuel burn and idle time by vessel. - Integrate maintenance alerts into the fleet management portal. - Our dispatcher uses FMS GPS to re-sequence pickups.

Freeboard

The vertical distance from the waterline to the deck edge; a safety margin that prevents water from boarding the vessel.

- Verify freeboard limits before taking on extra cargo. - Low freeboard increased splash on windy days. - Freeboard marks were repainted in dry dock.

GNSS (Global Navigation Satellite System)

Satellite-based positioning systems (e.g., GPS, Galileo, GLONASS) used for navigation, timing, and tracking.

- GNSS outages require manual fixes and visual navigation. - We upgraded to multi-constellation GNSS receivers. - GNSS-based geofences cue automatic arrival messages.

Gross Tonnage (GT)

A dimensionless measure of a vessel’s internal volume used to determine regulatory and fee thresholds.

- The vessel’s GT determines inspection requirements. - GT below the threshold exempts us from certain rules. - Modifications must not change GT without approval.

HAZID (Hazard Identification)

A structured process to identify operational hazards and propose mitigations early in design or before new operations.

- Conduct a HAZID workshop for the new pier. - The HAZID flagged over-the-side transfer risks. - We review HAZID actions at the safety committee.

HIN (Hull Identification Number)

A unique alphanumeric identifier assigned to a boat’s hull by the manufacturer or authority, used for registration and tracking.

- Verify the HIN matches the registration. - The insurer requested photos of the HIN plate. - Record the HIN in the CMMS asset record.

Hull Form

The shape and geometry of a vessel’s hull, affecting resistance, speed, seakeeping, wake, and fuel efficiency.

- The new catamaran hull form reduces wake wash. - A semi-planing hull helps in choppy harbor conditions. - Hull form drives fuel burn at service speed.

ISM Code (International Safety Management)

An international standard for the safe management and operation of ships and pollution prevention through a documented Safety Management System.

- Our SMS aligns with the ISM Code even though we are non-SOLAS. - The auditor sampled drills under our ISM procedures. - Document control is a key ISM requirement.

Jones Act

U.S. cabotage law requiring vessels moving goods between U.S. ports to be U.S.-built, owned, and crewed (with related rules for passengers).

- The Jones Act applies to our domestic parcel runs. - We chartered a U.S.-built boat to stay Jones Act compliant. - Cabotage waivers are rare; plan for Jones Act constraints.

Keel Clearance

The distance between the vessel’s keel and the seabed; a real-time safety margin against grounding.

- We require 0.5 meters keel clearance for safe operations. - Tidal predictions help maintain keel clearance on the flats. - Squat can erode keel clearance at speed.

Knot

A unit of speed equal to one nautical mile per hour, used universally in marine operations.

- Service speed is 18 knots. - We lost 2 knots against the ebb. - The SLA is based on average knots over the route.

Last-Mile Delivery

The final leg of moving goods to the end recipient; on water, this can mean small-vessel delivery to waterfront locations or moored ships.

- We provide last-mile delivery from the anchorage to the marina. - Docks with lockers simplify last-mile handoffs. - Pricing includes a last-mile surcharge for remote piers.

LOA (Length Overall)

The maximum length of a vessel from the foremost to the aftmost point, relevant for berthing, fees, and regulations.

- The berth can handle 24-meter LOA. - LOA limits which docks we can use at low water. - Charter party caps the LOA for substitutions.

Man Overboard (MOB)

An emergency situation where a person falls from a vessel into the water, triggering immediate recovery procedures.

- Conduct MOB drills monthly. - The MOB button on the plotter marks the position instantly. - PFD wear rules aim to prevent MOB fatalities.

MARPOL

The International Convention for the Prevention of Pollution from Ships, with annexes covering oil, noxious liquids, harmful substances, sewage, garbage, and air pollution.

- Garbage segregation meets MARPOL Annex V. - Oil record book entries are required under MARPOL. - Gray water discharge rules vary; check MARPOL and local laws.

Mooring

Securing a vessel to a dock, buoy, or anchor using lines, fenders, and appropriate configurations to control movement.

- Use spring lines to control surge at the ferry berth. - Review mooring line MBLs before the storm. - The floating pontoon eases mooring in tidal ranges.

MRO (Maintenance, Repair, and Overhaul)

All activities required to keep vessels and equipment operational, including scheduled service, corrective work, and major refurbishments.

- Shift MRO to shoulder seasons to maximize revenue days. - Our MRO backlog includes two engine overhauls. - The CMMS schedules MRO tasks by hours run.

Nautical Mile

A distance unit equal to 1,852 meters, aligning with one minute of latitude; the standard for maritime navigation.

- The route is 2.8 nautical miles each way. - Ticket pricing considers cost per nautical mile. - Charts and knots are based on nautical miles.

OPEX (Operating Expenditure)

The ongoing costs of operating the business, such as fuel, crew, maintenance, insurance, and port fees.

- Fuel hedging reduced OPEX volatility. - Dock fees are a major OPEX line item. - OPEX per trip guides our fare setting.

Over-the-Side Transfer

Moving people or cargo between a small craft and another vessel or platform without docking, requiring strict safety controls.

- Use a man basket for over-the-side transfer to the ship. - Weather limits over-the-side transfers above sea state 3. - A permit-to-work is required for over-the-side cargo moves.

PAX (Passengers)

Common industry shorthand for passengers; used in capacity planning, reporting, and scheduling.

- Our PAX limit is 49 per voyage. - PAX counts drive boat assignment during rush hour. - PAX feedback improved our boarding process.

Pilotage

The use of a qualified pilot to guide a vessel in confined or congested waters, often mandated for safety.

- No pilotage is required for our small craft on this route. - The temporary pilotage waiver saved costs. - Coordinate boarding time with the pilot station.

Preventive Maintenance (PM)

Scheduled maintenance performed to prevent equipment failures and extend asset life based on time or usage intervals.

- The PM for impellers is every 500 hours. - Missed PMs increase breakdown risk. - Close out PM tasks in the CMMS after completion.

QHSE (Quality, Health, Safety, and Environment)

An integrated management approach that ensures consistent quality while protecting people and the environment.

- QHSE KPIs include TRIR and near-miss reporting. - Our QHSE audit found gaps in lift plans. - QHSE training is part of new-hire onboarding.

Return on Invested Capital (ROIC)

A profitability metric that measures how effectively capital invested in the business generates returns after taxes.

- The new catamaran shows a 14% ROIC at steady state. - Improve ROIC by boosting utilization and yield. - ROIC targets drive our fleet renewal decisions.

Route Optimization

Selecting the most efficient path and schedule considering tides, currents, traffic, berth slots, and demand to minimize time and cost.

- We re-optimized routes to avoid opposing tides. - AI-based route optimization cut fuel by 8%. - Include VTS advisories in the route plan.

SAR (Search and Rescue)

Coordinated efforts to assist persons in distress at sea; mariners have duties to respond when safe and practicable.

- Report the distress to the Coast Guard and commence SAR. - Crew are trained in SAR patterns and comms. - SAR obligations apply regardless of commercial schedule.

Service Level Agreement (SLA)

A contractually defined level of service performance, such as on-time percentage, response times, and quality standards.

- Our SLA guarantees 95% of trips within a 5-minute window. - Penalties apply for missed pickups under the SLA. - The SLA defines acceptable parcel damage rates.

Shallow Water Effect (Squat)

A hydrodynamic phenomenon where a vessel’s draft increases at speed in shallow water, reducing under-keel clearance.

- Expect squat of 10–20 cm at 18 knots in this channel. - Reduce speed to limit squat near the flats. - Squat reduced our UKC below policy minimums.

SOLAS

The International Convention for the Safety of Life at Sea; sets minimum safety standards for construction, equipment, and operation of ships.

- Carrying more than 12 passengers can invoke SOLAS rules. - Our life-saving appliances meet SOLAS standards. - SOLAS drills are documented for audits.

Speed Over Ground (SOG)

The vessel’s actual speed relative to the Earth, typically measured via GNSS; differs from speed through water when currents exist.

- SOG dropped due to a 2-knot head current. - Dispatch tracks SOG to refine ETAs. - SOG differs from speed through water in strong currents.

STCW (Standards of Training, Certification and Watchkeeping)

International standards for seafarer training, certification, and watchkeeping to ensure competence and safety.

- Verify STCW endorsements for the new skipper. - STCW basic training is required for our crew class. - The auditor checked STCW hours of rest records.

Under-Keel Clearance (UKC)

The minimum safe distance between the keel and the seabed during a transit, managed by policy and operational controls.

- Our UKC policy is 10% of draft or 0.5 m, whichever is greater. - UKC must consider squat and wave action. - Delay departure to improve UKC on the bar.

Vessel Traffic Service (VTS)

A shore-based service that monitors and manages vessel movements in busy waterways to enhance safety and efficiency.

- Call VTS before entering the traffic separation scheme. - VTS reported congestion at the ferry terminal. - Follow VTS advisories during fog operations.