Key takeaways
- Distinguish the intended cargo quantity from the amount actually confirmed for shipment.
- Identify who controls any proposed quantity option or tolerance.
- Review freight and potential shortfall questions together without assuming entitlement.
- Obtain a clear decision before operational uncertainty becomes a firm commercial commitment.
Identify the quantity promise being proposed
Read the cargo description, quantity wording and relevant riders in the actual document set. Ask the authorised commercial team to explain what it intends to commit and what flexibility it expects. Check the current text with the contractual reviewer where that intention is not clearly expressed.
The working brief may contain an expected quantity based on production, storage or purchase planning. That figure should not become a contractual commitment simply because it has been copied into several versions of the enquiry.
Identify the source of the quantity information and its confidence level. The party responsible for physical cargo availability should explain what is confirmed and what remains dependent on another event. This gives the commercial decision-maker a realistic basis for negotiation.
Understand who controls the flexibility
A proposed range or option is useful only if the principal understands how it is intended to operate. Ask who can select the quantity within the proposed arrangement, when that choice must be made and what supporting information is required.
Do not assume that a range means every participant has equal freedom to change the cargo. The actual wording and negotiated allocation matter. An operator should not make a commercial choice merely because the plan remains within a figure shown in a summary.
Also identify what happens when new cargo information arrives. The team needs a route from changed availability to authorised commercial discussion. A revision to a loading plan should not silently alter the commitment or create an expectation that the other party has accepted the change.
Review freight and shortfall questions together
BIMCO's tanker charter workshop treats freight and deadfreight as related contractual review subjects. The actual agreement must determine whether a shortfall creates any claim and how it is assessed.
For pre-fixture preparation, identify how the proposed freight basis relates to quantity. Ask whether the principal's preferred commercial outcome depends on supplying the expected amount and which uncertainty could undermine that assumption.
Avoid treating the possibility of a shortfall as a reason to invent a deduction, penalty or universal formula. The useful task is to expose the commitment and obtain advice on its consequences before approval. The principal can then decide whether to confirm the cargo, negotiate a different basis or accept a defined uncertainty with appropriate authority.
Use a cargo-commitment review table
| Review question | Evidence or input | Commercial significance | Decision owner |
|---|---|---|---|
| What quantity is physically confirmed? | Current authorised cargo availability information | Distinguishes supply evidence from planning expectation | Cargo principal |
| What quantity is proposed contractually? | Actual recap and wording | Identifies the commitment being considered | Commercial decision-maker |
| What flexibility is intended? | Proposed option or tolerance and its conditions | Determines who may change the amount and how | Authorised negotiators with contractual advice |
| How does freight relate to quantity? | Agreed or proposed payment basis | Exposes the economic assumption behind the proposal | Commercial and contractual reviewers |
| What could cause a shortfall? | Specific unresolved cargo dependency | Identifies the uncertainty most relevant to approval | Cargo and operating teams |
| What evidence will be needed later? | Reviewed document requirements | Supports an accurate shipment and account review | Operations and finance |
| What change requires renewed approval? | Material decision assumptions | Prevents an operating update from silently changing the bargain | Principal's authorised representative |
The table is an original review method. It does not state a standard allocation for every ASBATANKVOY edition or amended fixture.
Test the most consequential uncertainty
Use a fictional scenario in which the principal expects additional cargo to become available before loading, but the responsible source has not confirmed it. Ask whether the commercial proposal remains acceptable without that additional quantity.
The answer may depend on the actual freight basis, the proposed quantity commitment and the principal's wider cargo obligations. The reviewer should identify those dependencies rather than treating the expected cargo as certain to make the preferred proposal appear workable.
Ask what evidence could resolve the uncertainty and whether it can be obtained before the decision is needed. If not, the principal must make a conscious choice about the remaining exposure. The coordinator should not hide the uncertainty in a footnote or select a quantity independently.
Fictional case: expected supply becomes a firm commitment
A fictional charterer circulates an enquiry using a quantity that includes cargo expected from a separate supply movement. The commercial team assumes that movement will complete in time and approves the fixture on the same basis.
During review, operations explains that only part of the cargo is confirmed. The additional supply remains uncertain, and the quantity wording does not clearly preserve the flexibility the commercial team thought it had.
The authorised negotiators revisit the proposal with contractual advice. They compare confirming the supply first, seeking revised quantity wording and considering another arrangement. The review does not calculate a claim or decide entitlement. It prevents an unconfirmed physical assumption from becoming an unexamined commercial promise.
Connect the approved commitment to loading preparation
Once the principal approves the quantity basis, give the operating team a clear statement of what has been decided and who may authorise a change. Include the relevant conditions and the source of the cargo information.
Identify the documents expected to support the later quantity and freight review. The preparer should know which records must be obtained and who can explain any difference. Do not let an earlier planning figure remain the default invoice input after the actual shipment evidence becomes available.
Technical cargo suitability and safe loading decisions remain with the responsible qualified parties. A commercial quantity commitment does not instruct the vessel or terminal to perform an operation beyond the applicable technical assessment. The handover should keep those decisions connected but distinct.
Review a later shortfall as a new question
If the cargo ultimately differs from the approved plan, identify the facts and the actual contractual issue. Preserve the quantity evidence, explanation of the change and relevant communications. Do not assume that an operational update itself establishes the parties' agreement about financial consequences.
The responsible adviser should assess any asserted deadfreight or other claim under the actual wording and circumstances. The commercial team can then consider its authorised response. The coordinator's contribution is a clear evidence basis and a precise question for decision.
Keep any proposed settlement separate from the factual record. A commercial compromise does not require the team to rewrite what happened, and an accepted factual correction does not necessarily settle every associated claim.
Common mistakes
Expected cargo can become a firm commitment through repeated copying. Other errors include assuming a quantity range gives unrestricted flexibility, reviewing freight independently of the supply assumption and treating a shortfall as an automatic claim calculation. Confirm the physical basis and the intended commercial commitment before approval.
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Educational information only; not legal, financial or trading advice. Contract wording and applicable rules control. Verify current requirements and obtain qualified advice before acting.
Frequently asked questions
Is a planning quantity suitable for the fixture recap?
Only after the authorised team understands its confidence level and intended contractual treatment. Do not let an unconfirmed supply expectation become a commitment by default.
Does a quantity tolerance allow any party to change the cargo?
Do not assume so. Review who controls the flexibility and the applicable conditions under the actual proposed wording.
Does a cargo shortfall automatically create deadfreight?
The actual agreement and circumstances determine the claim. Preserve the evidence and obtain the responsible contractual assessment rather than applying a universal rule.
What should operations receive after approval?
Provide the approved quantity basis, remaining conditions, authority for changes and evidence requirements. Keep technical loading assessment with the qualified parties responsible for it.