Address Commission

AAA

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.

BREAKING DOWN '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.

RELATED TERMS
  1. Baltic Exchange

    An exchange that handles the trading and settlement of both physical ...
  2. Soft Commissions

    Any type of commission that is not paid in actual dollars. Soft ...
  3. Commission Broker

    Someone who gets paid by the brokerage company for which he works ...
  4. Commission

    A service charge assessed by a broker or investment advisor in ...
  5. Baltic Dry Index - BDI

    A shipping and trade index created by the London-based Baltic ...
  6. Brokerage Company

    A business whose main responsibility is to be an intermediary ...
Related Articles
  1. Insurance

    What You Need To Know About Financial Analysts

    Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for.
  2. Investing Basics

    Picking Your First Broker

    If you're a rookie investor, your first big investment decision should be an informed one.
  3. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  4. Brokers

    Evaluating Your Stock Broker

    Make sure you're getting the best service by staying informed and involved.
  5. Options & Futures

    The 4 Ways To Buy And Sell Securities

    Know the four main avenues of buying and selling investment instruments.
  6. Markets

    Stock Analysts: Should You Listen?

    If you want to find out which analysts are worth following, you shouldn't take their word for it.
  7. Investing Basics

    What's Current Portion of Long-Term Debt?

    The current portion of long-term debt is the part of a company’s long-term debt that must be repaid within the next year.
  8. Economics

    Explaining Cost Control

    For a business, cost control entails managing and reducing expenses.
  9. Investing Basics

    Breaking Down Optimal Capital Structure

    An optimal capital structure shows the best balance of debt to equity a company can have in order to minimize its cost of capital.
  10. Economics

    Explaining Accounting Conservatism

    Accounting conservatism is a principal that requires accounting rules be applied with high degrees of verification.
RELATED FAQS
  1. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>
  2. Are dividends considered an expense?

    Cash or stock dividends distributed to shareholders are not considered an expense on a company's income statement. Stock ... Read Full Answer >>
  3. Do dividends go on the balance sheet?

    The only account recorded on the balance sheet, when dividends are declared and before they are paid out to a company's shareholders, ... Read Full Answer >>
  4. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  5. How do dividend distributions affect additional paid in capital?

    Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: ... Read Full Answer >>
  6. Why can additional paid in capital never have a negative balance?

    The additional paid-in capital figure on a company's balance sheet can never be negative because companies do not pay investors ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Recession

    A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, ...
  2. Bubble Theory

    A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these ...
  3. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  4. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  5. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
  6. Shanghai Stock Exchange

    The largest stock exchange in mainland China, the Shanghai Stock Exchange is a nonprofit organization run by the China Securities ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!