How can Deadfreight and Minimum Quantity Automatically Generate Each Other?
Question
How can minimum quantity automatically generate deadfreight? And vice versa?
Answer
Minimum Quantity and deadfreight can be calculated in several ways depending on the flexibility provided in the Charter Party. For example, 10% MOLCO means 10% More or Less Charterers Option. If the booked quantity is 10000 MT, the minimum according to this agreement is then 9000 MT. If the Charterer is unable to deliver at least 9000 MT, there will be a deadfreight.
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