Gross daily rate

The gross daily rate is the headline time-charter hire per day before any deductions, the figure quoted in the fixture and the indices. From it the owner nets address commission (returned to the charterer, typically 1.25 to 5 percent) and brokerage (paid to the chartering broker, around 1.25 percent) to reach the net hire actually received. Hire is paid in advance, commonly every 15 days or per calendar month under NYPE terms. The gross rate is the basis for comparison across fixtures, while the net rate drives the owner’s cash flow.