Voyage Charters

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Chapter 13


[clause 1 continued]  
… on being paid freight on delivered 18
or intaken quantity as indicated in Box 13 at the rate stated in 19
Box 13. 20
4. Payment of freight 46
The freight to be paid in the manner prescribed in Box 14 in cash 47
without discount on delivery of the cargo at mean rate of exchange 48
ruling on day or days of payments the receivers of the cargo being 49
bound to pay freight on account during delivery, if required by Captain 50
or Owners. 51
Cash for vessel’s ordinary disbursements at port of loading to 52
be advanced by Charterers if required at highest current rate of 53
exchange, subject to two per cent, to cover insurance and other 54
expenses. 55

The meaning of freight

13.1 Freight is the remuneration payable for the carriage of the cargo. The law on the subject was developed in relation to the carriage of goods by sea, but many aspects of it have since been applied in relation to all forms of carriage1 and to cases where a freight forwarder organises carriage.2 13.2 In order to earn freight, the shipowner must, unless otherwise agreed, carry the cargo to the destination provided for in the charterparty and be ready to deliver it there.3 If he fails to deliver any cargo, no freight is payable; if he delivers part of the cargo loaded, it is payable only on the part delivered. The principle was stated by Willes J. as follows:

… the true test of the right to freight is the question whether the service in respect of which the freight was contracted to be paid has been substantially performed; and according to the law of England, as a rule, freight is earned by the carriage and arrival of the goods ready to be delivered to the merchant, though they may be in a damaged state when they arrive. If the shipowner fails to carry the goods for the merchant to the destined port, the freight is not earned. If he carries part, but not the whole, no freight is payable in respect of the part not carried, and freight is payable in respect of the

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part carried unless the charterparty makes the carriage of the whole a condition precedent to the earning of any freight – a case which has not within our experience arisen in practice …

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