What is the voyage broker's commission rate for a voyage charter of the total?

• A. 0.50%
• B. 1.25%
• C. 2.00%
• D. 3.00%

Answer: (B)

In a voyage charter, the broker’s fee is a commission on the total hire for the voyage. This payment compensates the broker for arranging the charter, negotiating terms, and coordinating the deal. The standard industry rate for this commission is 1.25% of the total charter hire. A lower rate like 0.50% would typically underpay the broker for the level of service provided, while higher rates such as 2.00% or 3.00% are less common unless there are special circumstances. The commission is usually paid by the charterer as part of the voyage costs, and the total hire refers to the full amount paid for the voyage, not a daily rate.