Advance freight

Advance freight is freight paid by the shipper at the loading port on shipment, before the cargo reaches its destination. Once paid it is not returnable even if the ship and cargo are lost, which shifts that risk to the cargo owner and gives the owner working capital at the front of the voyage. The charter party states the split, for example part on signing bills of lading and the balance on right and true delivery. English law treats prepaid freight as earned and irrecoverable absent an express clause to the contrary, the rule confirmed in Allison v Bristol Marine.