Deadfreight
Meaning
Deadfreight is compensation the charterer pays when it loads less cargo than it agreed to supply, for the unused space it reserved.
Also written as Dead freight
Deadfreight explained
If the charter requires a minimum cargo, for example 80,000 tonnes, and only 75,000 tonnes are loaded, the owner can claim freight on the 5,000-tonne shortfall, usually less any costs saved.
The ship's master normally issues a deadfreight protest at the load port to protect the claim.
Related terms
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.
Lumpsum freight
Lumpsum freight is a single fixed amount for the whole voyage, regardless of how much cargo is actually loaded within the agreed range.
Cargo tolerance
Cargo tolerance is the allowed variation in cargo quantity, such as 5% more or less in owners' option (MOLOO) or in charterers' option (MOLCO).