ADVANCE FREIGHT

A B C D E F G H I J L M N O P Q R S T U V W Y Z
Advance Freight — 1) a sum of money provided by a charterer or shipper to a shipowner to cover expenses at the port of loading. It is typically considered earned freight and is non-refundable, giving the cargo owner an insurable interest; 2) a partial prepayment of the total freight cost. If the carriage contract specifies that transportation is paid at the port of destination, the ship's master may request an advance to cover loading port expenses, usually up to one-third of the total freight, which is noted on the bill of lading and deducted from the final payment.