Lumpsum freight
Meaning
Lumpsum freight is a single fixed amount for the whole voyage, regardless of how much cargo is actually loaded within the agreed range.
Also written as Lumpsum, LS
Lumpsum freight explained
Lumpsum freight is common on short-haul trades, products cargoes and some ship-to-ship or lightering work, where Worldscale is less practical. The charterer pays the agreed sum whether the ship is full or not.
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.
Worldscale
Worldscale is the index used to price tanker freight: a route's flat rate is WS 100, and fixtures are agreed as a percentage of it, such as WS 60.
Deadfreight
Deadfreight is compensation the charterer pays when it loads less cargo than it agreed to supply, for the unused space it reserved.