The freight clause in a voyage charter must declare whether the remuneration is calculated at so much per ton or package, which is usually done either by weight or measurement, or in a lump sum for the whole cargo, dead freight included, and how the payment of freight is to be effected.
As a rule, freight should not be paid until earned-that is, till the goods shipped are safely delivered to the proper person at port of destination-but in practice it is often otherwise.
The usual condition in charters is that freight shall be paid by receiver on delivery of the cargo, the captain receiving an advance on such freight for ship’s use before leaving the port of loading.
For vessels sailing under charter, freight is seldom required to be paid wholly in advance, while such a condition is often imposed by navigation companies, whose steamers are employed as general ships.
ADVERTISEMENTS:
The condition of a gratuity on behalf of the captain is sometimes added to the freight clause. This gratuity is fixed in a round sum for the whole cargo and voyage, but rarely finds its way to the captain.
Primage, formally called hat money, is a percentage frequently charged over and above the freight. This, formerly, belonged to captain as an acknowledged right, but is now retained by ship-owner.
In a time charter freight is usually agreed upon either at so much per ton, and per diem, or calendar month, from the day of the ship’s delivery to the charterer, to her re-delivery to the owner, or in a lump sum for the whole term.
Both voyage and time charters usually bear a clause binding on the captain to sign bills of lading on receipt of the cargo, at any rate of freight as directed by the freighter, “without prejudice to the charter.
ADVERTISEMENTS:
The purport of such a clause is to leave the charterer quite free to sublet the whole or a part of the vessel, at such a freight as convenient; that is, either higher or lower than the rate fixed by the charter, and which he is to pay to the owner.
As freight is, in most cases, cashed by the captain, the difference, if any, between the two rates is easily compensated between the parties.
Another additional clause concerning freight, which is regularly found in charter parties, and very often in bills of lading also, is the following:
The owner to have a lien on the cargo, or any part thereof, for payment offreight and demurrage.
ADVERTISEMENTS:
The ship owner’s right to a lien on the cargo for payment of freight is generally acknowledged by the laws of all nations. By this clause, however, it is stated beyond dispute that the captain is thereby empowered to put a stop on the goods, until discharge of such dues* or until the corresponding amount be deposited, and even to enforce payment contemporaneously with delivery.