Payment of Freight
Payment of Freight
Changes to Gencon 1976 are shown by underlining.
4. Payment of Freight
(a) The freight at the rate stated in Box 13 shall be paid in cash calculated on the intaken quantity of cargo.
(b) Prepaid . If according to Box 13 freight is to be paid on shipment, it shall be deemed earned and non-returnable, Vessel and/or cargo lost or not lost. Neither the Owners nor their agents shall be required to sign or endorse bills of lading showing freight prepaid unless the freight due to the Owners has actually been paid.
(c) On delivery . If according to Box 13 freight, or part thereof, is payable at destination it shall not be deemed earned until the cargo is thus delivered Notwithstanding the provisions under (a), if freight or part thereof is payable on delivery of the cargo the Charterers shall have the option of paying the freight on delivered weight/quantity provided such option is declared before breaking bulk and the weight/quantity can be ascertained by official weighing machine, joint draft survey or tally.
Cash for Vessel’s ordinary disbursements at the port of loading to be advance by the Charterers, if required, at highest current rate of exchange, subject to two (2) per cent to cover insurance and other expenses.
Clause 4 in Gencon 1976 echoed the position at common law and provided for freight to be payable concurrently with the delivery of the cargo. In practice, however, clause 4 was almost invariably replaced by typewritten provisions stipulating, according to varying formulae, for freight to be paid in advance. 1 Gencon 1994, in Box 13, now provides the parties with the option of agreeing that freight shall be pre paid or paid on delivery, with the provisions of clause 4(b) and clause 4(c), respectively, applying, depending on which alternative is agreed.
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