Freight & payment
Freight tax
Meaning
Freight tax is a tax some countries levy on freight earned by foreign shipowners for cargo loaded or discharged in their ports.
Freight tax explained
Countries including India, Indonesia and several in South America and Africa levy freight tax. The charter should say who pays it; on tankers it is commonly for the owner's account unless agreed otherwise.
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.
Port disbursement account
A port disbursement account lists a port call's costs (dues, pilotage, towage, agency) as a proforma estimate (PDA) and final bill (FDA).