Dead Freight Dilemma: How to Handle Cargo Shortfall Like a Pro

🚢 Dead Freight Dilemma: How to Handle Cargo Shortfall Like a Pro

Do You Know the Answers to These Critical Questions?

1. If cargo is not ready at the load port, do you have to issue an official notice?
2. Can you claim dead freight even if no one signed your dead freight letter?
3. Are you including the right comments in your Statement of Facts that protect your legal position?

If you hesitated to answer any of the above, you’re not alone—and this blog post is for you.

Clause Breakdown: Missing Cargo, Delays & Dead Freight Explained

This clause deals with a crucial real-world issue: What happens when the agreed cargo isn’t ready, delayed, or falls short at the load port?

Let’s break it down:

🔹 1. Cargo Not Ready or Interrupted

• Requirement: Master must notify the charterer's operator (Oldendorff in this case) immediately.
• Why: This puts the ball in the charterer's court and protects the owner from time losses or laytime disputes.
• Action: Simultaneously issue a formal notice to the Shippers/Agents. This written proof is your shield in case of legal complications.

🔹 2. Statement of Facts (SoF)

• What to Do: Add comments stating cargo was not ready or interrupted.
• Why It Matters: These remarks are often the first point of reference in disputes or arbitration.

🔹 3. Missing Cargo & Dead Freight

• When to Act: If the Shippers/Charterers fail to provide the full cargo quantity.
• Action: Issue a Dead Freight Letter, clearly showing:
• The agreed quantity
• The shortfall
• Basis of calculation (draft limitations, cubic capacity, etc.)
• Pro Tip: Try to get this letter countersigned by Shippers/Terminal to validate your claim.

🔹 4. Documentation Trail

• At Departure:
• Refer to the issued Dead Freight Letter.
• Attach it with the departure message and loadport documents.
• Why It Matters: This builds a strong paper trail for any commercial or legal claim.

Common Pitfalls to Avoid

• ❌ Not notifying immediately—loses legal leverage.
• ❌ Forgetting to include comments in the SoF—weakens your claim.
• ❌ Issuing an incomplete Dead Freight Letter—leads to dispute or rejection.
• ❌ Failing to mention who ordered loading to stop—creates ambiguity.

Actionable Tips for Masters, Operators & Charterers

✅ Ensure Master's communication is immediate and clear—use email + message system.
✅ Have Dead Freight Letter templates ready in advance with editable fields.
✅ Always capture who gave the stop loading order—Master, shore, or terminal.
✅ During pre-fixture, align understanding on permissible draft/capacity limits to avoid surprises.
✅ Train officers to take SoF remarks seriously—it’s not just paperwork; it’s legal protection.
✅ Document everything. If it’s not on paper, it didn’t happen.

Conclusion: Don't Let Cargo Gaps Sink Your Claims

Cargo shortages or delays at load ports are frustrating, but they can be financially recoverable if handled properly. With timely notices, complete documentation, and the right process, you can protect your vessel, your owner’s rights, and your P&L.

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📌 Disclaimer

This blog is for educational purposes only and does not constitute legal advice. Always consult your legal or commercial advisors for contract-specific guidance.