Address commission
Meaning
Address commission is a percentage of the freight or hire that the owner pays back to the charterer, effectively a discount on the rate.
Also written as ADCOM, Address comm
Address commission explained
On tankers address commission is commonly 1.25% to 3.75% of the freight, deadfreight and demurrage. It is deducted from the payment and reflects the charterer's buying power rather than any service.
Related terms
Brokerage commission
Brokerage commission is the fee owners pay the brokers who arranged the fixture, a percentage of freight, deadfreight and demurrage.
Freight
Freight is the payment a charterer makes to the owner for carrying cargo under a voyage charter, quoted per tonne, as a lumpsum or in Worldscale.
TCE
TCE (time charter equivalent) converts a voyage's freight into daily earnings: freight minus voyage costs, divided by the days the voyage takes.