Amount of Freight

Payment may be on weight, measurement, lump sum or ‘Ad Valorem’ Weight: The most common in dry cargo voyage chartering is US$ per tonne. Be careful as some trades describe quantity of cargo in metric tons and freight in long tons. Tonne (metric ton): 1,000 kg  Long ton (2,240Ib) : 1,016 kg (approx.) Short ton (2,000Ib): 907 kg
The latter is rare, mostly seen in trades involving the United States of America. Measurement: In general cargo liner trades the calculation of freight may be described as weight or measurement in owners’ option: If Stowage Factor (SF) below 40 CUFT per tonne – freight paid on weight basis If SF above 40 CUFT per tonne – freight paid on measurement basis. Lump sum: Is used in certain trades where, for example, SF is not known accurately. When, loadable quantity is unknown at time of fixing, for example due to high SF Preferred for a specific trade route. Various ports in a discharge range, trader wants one rate to apply for any port. When fixing a Lump sum rate, the owner must ensure that maximum number of loaclldischarge ports is specified; and Rotation of the ports, for example in geographical rotation. Ad Valorem: Used in the liner trades, usually is based on a percentage of declared value.