In the transportation industry; dead freight is used to describe the?

A. cost paid for an empty space left in the ship
B. charge for each day performance was delayed
C. persons that hire a ship for a specific purpose
D. cost of shipping a particular cargo for a specific voyage

Correct Answer:

Option A – cost paid for an empty space left in the ship

Explanation

Dead freight is the amount paid by or recoverable from a charterer of a ship for such part of the ship’s capacity as the charterer has contracted for but fails to occupy also. it is simply payment for the unoccupied space in chartered ship.