Freight earned on loading
Meaning
Freight earned on loading means the owner has earned the full freight once the cargo is loaded, even if it is later lost, and it is not returnable.
Also written as Freight deemed earned
Freight earned on loading explained
Most tanker charters say freight is “deemed earned as cargo is loaded, discountless and non-returnable, ship and/or cargo lost or not lost”. Payment itself is typically due on completion of discharge or on delivery of the cargo documents.
This shifts the risk of a lost voyage to the cargo interests, who insure against it.
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.
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.