Dead freight意思
"Dead freight" is a term used in the shipping and logistics industry that refers to cargo that has been shipped but not paid for by the consignee (the party who is supposed to receive the goods). In other words, it is freight that has been delivered but for which the consignee refuses to take delivery or pay for.
When dead freight occurs, the shipping company or the party responsible for the shipment is left with the cost of the transportation without receiving any payment for it. This can be a significant financial loss, especially if the shipment is large or the shipping company has already paid for the cargo's transportation.
Dead freight can happen for various reasons, such as:
- Insolvency or bankruptcy of the consignee.
- A change in market conditions that makes the goods less valuable than the cost of transportation.
- Errors in the shipping documentation or miscommunication between the shipper and the consignee.
- Non-payment of the goods by the consignee for reasons such as disputes over quality, quantity, or other terms of the contract.
To mitigate the risk of dead freight, shipping companies often include clauses in their contracts that allow them to charge the shipper for the full cost of the transportation if the consignee refuses to take delivery of the goods. They may also require the shipper to provide a letter of credit or other forms of payment guarantee before shipping the goods.