Address Commission

What Is an Address Commission?

An address commission is a fee paid by vessel owners to charterers. A charterer is a party who possesses cargo and rents a vessel to deliver that cargo. The charterer utilizes a shipbroker who will track down the legitimate ship to deliver the cargo. The shipowner pays the shipbroker a commission for their services.

The shipowner pays the address commission to the charterer. The charterer utilizes this address commission to cover business costs.

Accordingly, the fees incurred by the charterer are diminished by the amount of the address commission.

Understanding an Address Commission

The type of ship and charter utilized decide the total fees and address commissions incurred by ship owners and charterers.

For instance, a period charter implements costs that are connected with the employment duration of a vessel. A voyage charter's fees are dependent on the total weight of the cargo being shipped.

"Liberated from address" alludes to a shipment that doesn't need payment of the commission.

Features

• An address commission is a fee paid by the owner of a vessel to the charterer who leases the vessel.
• "Liberated from charter" alludes to a shipment for which this fee is deferred.
• The fee balances the costs to the charterer.