Cargo tolerance
Meaning
Cargo tolerance is the allowed variation in cargo quantity, such as 5% more or less in owners' option (MOLOO) or in charterers' option (MOLCO).
Also written as MOLOO, MOLCO, More or less in owners' option, More or less in charterers' option
Cargo tolerance explained
A recap might say “80,000 mt 5% MOLOO”. The owner then decides the exact quantity within 76,000 to 84,000 tonnes, depending on draft, bunkers and stability. Under MOLCO the charterer decides.
The minimum quantity is the basis for deadfreight claims if the charterer supplies less.
Related terms
Deadfreight
Deadfreight is compensation the charterer pays when it loads less cargo than it agreed to supply, for the unused space it reserved.
Deadweight
Deadweight (DWT) is the total weight a ship can carry, cargo plus fuel, water, stores and crew, at its maximum permitted draft, in tonnes.
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.