§ 1984 Freightage Rights After Abandonment

When a ship is officially abandoned, any freight money earned before the loss goes to the freight insurer, while freight money earned after the loss goes to the ship insurer.

Key Takeaways

•Abandonment must be accepted for the rule to apply.
•Freight earned before the loss belongs to the freight insurer.
•Freight earned after the loss belongs to the ship insurer.

Example

A cargo ship gets caught in a storm and the owners declare it abandoned. The ship had already earned $10,000 in freight before the storm, and it later earns another $5,000 from cargo delivered after the abandonment.

The $10,000 earned before the storm is paid to the company that insured the freight, and the $5,000 earned after the abandonment is paid to the company that insured the ship itself.

When a ship is officially abandoned, any freight money earned before the loss goes to the freight insurer, while freight money earned after the loss goes to the ship insurer.

Key Takeaways

•Abandonment must be accepted for the rule to apply.
•Freight earned before the loss belongs to the freight insurer.
•Freight earned after the loss belongs to the ship insurer.

Example

The $10,000 earned before the storm is paid to the company that insured the freight, and the $5,000 earned after the abandonment is paid to the company that insured the ship itself.

Key Takeaways

Example

Key Terms

References

§ 1984 Freightage Rights After Abandonment

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References