Address commission

Address commission is a percentage of gross freight, deadfreight, and demurrage that the shipowner returns to the charterer under a charter party, in effect a discount the charterer keeps for itself. It typically runs 1.25 to 5 percent and is deducted from each freight or hire payment, separate from the brokerage paid to the chartering broker. The clause names the rate and the items it applies to; on a time charter it is taken from hire. Charterers with strong bargaining power, the oil majors and large traders, command the higher rates.