When is Freight Earned?
Freight is earned on completion of the voyage when the cargo is delivered in merchantable condition, unless any clause stipulated in the charter-party to the contrary.
In dry cargo shipping business, it is common to stipulate such a clause in a charter-party:
“freight deemed earned upon loading, discounted and non-returnable cargo and/or ship lost or not lost as loaded on board”
FDEDANRSAOCLONL means Freight Deemed Earned, Discountless And Non-Returnable Ship And Or Cargo Lost Or Not Lost.
In this case, charterer, having paid the freight upon loading the cargo, is at risk and prudent charterers should insure the freight and cargo.