Nautical Term: FDD
Definition of FDD
Freight Demurrage Deadfreight is a term commonly used in the maritime industry. It refers to three distinct costs that can arise when shipping goods by sea.
Firstly, Freight Demurrage refers to the additional costs incurred when a ship is held at a port beyond the free time allotted to the vessel.
Secondly, Deadfreight is the cost incurred when a shipment of goods that was originally contracted to be carried on a particular vessel, fails to load or is offloaded prior to reaching the intended destination.
Thirdly, Demurrage refers to the additional costs incurred when a ship is held at a port beyond the free time allotted to the vessel. It’s important to note that demurrage costs can add up quickly and significantly increase the overall cost of shipping goods by sea.
For example, let’s assume that a shipping company contracts a vessel to transport a consignment of 500 metric tons of steel from the port of Shanghai in China to the port of Rotterdam in the Netherlands.
The shipping contract stipulates that the vessel will have a free time of 7
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