If a voyage charter generates revenue from freight, dead freight, and demurrage, the broker's 1.25% commission applies to which amount?

If a voyage charter generates revenue from freight, dead freight, and demurrage, the broker's 1.25% commission applies to which amount?

• A. Freight only
• B. Demurrage only
• C. The total freight, dead freight, and demurrage
• D. The total freight and demurrage

Answer: (C)

In voyage chartering, a broker’s commission is earned on all revenue the shipowner receives under the charter party, not just the freight. This includes freight for transporting cargo, dead freight (paid if the cargo space is not fully utilized as contracted), and demurrage (charges for delays beyond the agreed laytime). Since the broker helped secure the entire charter arrangement and contributed to the total financial flow, the commission base covers the sum of freight, dead freight, and demurrage. Therefore, the 1.25% applies to the total of all three amounts.

In voyage chartering, a broker’s commission is earned on all revenue the shipowner receives under the charter party, not just the freight. This includes freight for transporting cargo, dead freight (paid if the cargo space is not fully utilized as contracted), and demurrage (charges for delays beyond the agreed laytime). Since the broker helped secure the entire charter arrangement and contributed to the total financial flow, the commission base covers the sum of freight, dead freight, and demurrage. Therefore, the 1.25% applies to the total of all three amounts.