Pro rata freight


Pro rata freight. Without express or implied agreement, full freight is payable only on delivery of the cargo. If the ship and/or the cargo is lost freight does not become payable. However, a clause in a charterparty may provide for part (or all) of the freight to be prepaid. This is one use of the phrase "prorata freight".

Another use is related to a situation where the ship cannot complete the voyage for same reason.  For instance, the ship may suffer a casualty and have to call into a port for repairs. The cargo owner may decide to take over the cargo and carry it on to the destination. The shipowner may claim for pro rata freight for part-performance of the voyage charter. The legal principle that allows him to do this is called "Quantum meruit" ("As much as he has earned . . . ").