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Deadfreight

A5. Maritime Law, private and commercial

Definition

Compensation payable for cargo short-shipped under a charterparty.

Deadfreight is the owner’s claim against a charterer who ships less than the full cargo the charter required, measured by the freight that would have been earned on the shortfall, less any expenses saved. It is unliquidated damages for breach of the lifting obligation, not a separate freight head, so the owner must prove the loss and mitigate. Cesser clauses and cargo liens are commonly drafted to cover deadfreight alongside demurrage, because both crystallize at the load port.

Source: Deadfreight (voyage charter practice)