Cargo shortage
Meaning
A cargo shortage is a difference between loaded and discharged quantities; many tanker charters let charterers deduct losses above 0.5%.
Also written as In-transit loss, 0.5% clause
Cargo shortage explained
Some loss in transit is normal on liquid cargoes, from evaporation and clingage. Charterers' riders often allow them to deduct from freight the value of any loss above 0.5% of the bill of lading quantity.
Owners defend these claims with OBQ and ROB surveys, VEF-corrected ship figures and evidence that all pumpable cargo was discharged.
Related terms
Remaining on board
Remaining on board (ROB) is cargo left in a tanker's tanks after discharge; on-board quantity (OBQ) is residue already in the tanks before loading.
Vessel experience factor
The vessel experience factor (VEF) is the average ratio between a ship's measured cargo figures and shore figures, used to correct ship quantities.
Ullage
Ullage is the empty space between the surface of the liquid cargo and the top of the tank, measured to work out how much cargo is on board.
Bill of lading
A bill of lading (B/L) is the document issued for cargo loaded on a ship: a receipt, evidence of the carriage contract and a document of title.