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Address Commission: What it is, How it Works

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澳洲幸运5开奖号码历史查询:Will Kenton
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Updated July 07, 2022
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What Is an Address Commission?

An address commission is a fee paid by vessel owners to charterers. A charterer is a party who owns cargo and rents a vessel to deliver that cargo. The charterer employs a shipbroker who will fi𒊎nd the proper ship to deliver the cargo. The shipowner pays the shipbroker a commission for their services.

The shi🌳powner pays the address commission to the charterer. The charterer uses this address commission to cover business costs. As a result, the fees incurred by the charterer are reduced by theܫ amount of the address commission.

Key Takeaways

  • An address commission is a fee paid by the owner of a vessel to the charterer who rents the vessel.
  • The fee offsets the costs to the charterer.
  • "Free of charter" refers to a shipment for which this fee is waived.

Understanding an Address Commission

🦹The type of ship and charter used determine the total fees and address commissionsജ incurred by ship owners and charterers.

For example, a time charter enforces costs that are related to the employment duration of a vessel. A voyage charter's fees are dependent on the total weight of the cargo being transported.

"Free of address" refers to a shipment that does not require payment of the commission.

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