What is Deadfreight?

When the charterers fail to provide the agreed quantity of cargo the owners will typically be entitled to compensation for their loss of earnings which is known as deadfreight. For example where the cargo quantity has been described in the charterpartyas:

30,000mt 10% MOlOO (more or less in owners Option) the master will calculate the loadable quantity with reference to any draught restrictions at the intended ports, rivers and berths to be used, the vessel’s cubic capacity and SF of the cargo. Within the above cargo description, the master may call for any quantity between 27,000mt and 33,000mt. Suppose 32,000mt is called for, but only
30,000mt is supplied, the charterer will pay deadfreight on 2,000mt shortfall. This is known as deadfreight.