Address Commission

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Dictionary Says

Definition of 'Address Commission'

The fee paid by vessel owners to charterers, the party who owns cargo and employs a shipbroker who will find a proper ship to deliver the cargo. As a result, the total fees incurred by the charterer are reduced by the amount of the address commission.

“Free of address,” refers to a charter which is not paid the address commission.

Investopedia Says

Investopedia explains 'Address Commission'

The type of ship and charter used determines the total fees and address commissions incurred by ship-owners and the charterers. For example, a time charter enforces costs that are related to the employment duration of a vessel, while a voyage charter's fees are dependent on the total weight of the cargo being transported.
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'Address Commission'

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