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Ballast bonus

C1. Commercial shipping, chartering, economics and finance

Definition

Lump sum payable to owners to compensate for an unprofitable ballast leg before delivery.

A lump sum the charterer pays the owner to compensate for an unprofitable ballast leg the ship must steam to reach the delivery or loading point. On a period charter delivered far from the ship’s last discharge, or a voyage with a long unladen approach, the ballast bonus offsets the cost of that revenue-free passage. It is negotiated as a fixed amount on top of hire or freight, distinct from the daily hire rate.