Intake Quantity (MOLOO / MOLCHOPT)

What it does

The intake quantity provisions state how much cargo the charterer is to load, normally expressed as a target quantity with a margin, for example a stated number of tonnes plus or minus a percentage. The margin exists because the exact amount a ship can or will load depends on stowage factor, draft limits, bunkers, and trim, which cannot be pinned down precisely when the fixture is made.

The terms also say who controls the margin: a more-or-less owner's option lets the owner declare the final quantity within the range, typically so it can fully use the ship's capacity, while a charterer's option lets the charterer decide, to suit its cargo availability. Which option applies, and how and when it is declared, determines the quantity the charterer must provide and the freight that follows from it.

Commercial effect

The intake quantity drives the freight, since freight is usually earned on the quantity loaded, and it determines how fully the ship is used. The margin and whose option controls it therefore allocate flexibility and risk: an owner's option protects the owner's ability to fill the ship and earn on a full cargo, while a charterer's option gives the charterer room to match the cargo it actually has available.

The provisions interact closely with deadfreight, because if the charterer fails to provide the agreed minimum quantity the shortfall can give rise to a deadfreight claim. They also connect to the ship's stated capacity and to draft and intake calculations, which is why the quantity terms are read alongside the vessel description and the loading port's draft limits when the fixture is assessed.

Owner's perspective

The owner generally prefers a more-or-less owner's option, so that it can declare a quantity that uses the ship's capacity to the full and maximises the freight earned on the voyage. It wants the margin set realistically against the ship's deadweight and the expected stowage factor, so that the declared quantity reflects what the vessel can actually lift on the intended draft.

The owner also relies on the deadfreight mechanism as the backstop if the charterer does not supply the agreed minimum, so it wants the minimum and the option clearly stated. Clear quantity terms protect the owner from loading short and earning less than the voyage was priced to deliver, while preserving the flexibility the margin is meant to provide.

Charterer's perspective

The charterer often prefers a charterer's option on the margin, so that it can match the loaded quantity to the cargo it has available and to its sale commitments, rather than being obliged to find cargo to fill an owner-declared figure. The margin gives it room to manage ordinary variation in cargo availability without falling short of the charter quantity.

The charterer is conscious of the deadfreight exposure if it fails to provide the agreed minimum, so it negotiates the minimum and the margin against what it can realistically supply. It also aligns the intake quantity with its sale contracts and with the loading port's draft and intake constraints, so that the quantity it commits to load is one it can actually deliver to the ship.

Negotiation points

• The target quantity and the margin (the more-or-less percentage) around it.
• Whose option controls the margin — owner's option (MOLOO) or charterer's option (MOLCHOPT).
• When and how the controlling party must declare the final quantity.
• The interaction with deadfreight if the charterer fails to supply the agreed minimum.

Common variations

• A quantity with a more-or-less owner's option (MOLOO) to use full capacity.
• A quantity with a more-or-less charterer's option (MOLCHOPT) to suit cargo availability.
• A min/max range stated as two figures rather than a target and margin.
• A quantity expressed as a full and complete cargo within the ship's safe capacity.