Overage
Meaning
Overage is the extra cargo insurance premium charged when a ship is older than an underwriter's age limit, usually 15 or 20 years.
Also written as Overage premium, Overage insurance
Overage explained
Cargo underwriters charge an additional premium for cargo on older tankers. Charter parties often say who pays it; usually the owner pays for ships above an agreed age.
Overage costs are one reason older tankers fix at a discount to modern ships on the same route.
Related terms
Additional war risk premium
Additional war risk premium (AWRP) is the extra insurance cost charged for each call to, or transit through, an area listed as high risk by war underwriters.
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.