Commission

Commission is the percentage payment a broker earns for arranging a charter or a ship sale. On a charter it is brokerage commission, typically 1.25 percent of gross freight, deadfreight, and demurrage on a voyage charter or of hire on a time charter, named in the commission clause and deducted from each payment to the owner. It is distinct from address commission, the discount a charterer keeps for itself. On a sale and purchase deal the broker’s commission is usually 1 percent of the sale price, paid by the appointing principal. A fixture or sale can carry commission for brokers on both sides.