Legal Definitions - hat money

Hat money refers to a traditional, small additional payment made to the captain (and sometimes the crew) of a ship. This payment was historically given by the cargo owner or shipper as a token of appreciation for the captain's diligent care and personal attention to the cargo during its sea voyage, ensuring its safe delivery. It was separate from the main freight charges, which covered the basic cost of transportation.

Here are some examples illustrating the concept of hat money:

• Imagine a 19th-century merchant shipping a rare collection of antique porcelain from Canton to London. Knowing the extreme fragility and immense value of the cargo, the merchant might have included a small sum, designated as hat money, in addition to the standard freight fee. This extra payment would acknowledge the ship's captain's personal responsibility and careful supervision of the delicate crates throughout the long and often perilous journey, ensuring they arrived intact and undamaged.

• Consider a contemporary scenario where a company is transporting highly sensitive scientific equipment across the ocean. While the primary freight covers the shipping cost, the company might agree to an additional, small payment to the vessel's master. This extra sum would be specifically for the captain's personal oversight of the equipment's environmental controls (e.g., temperature, humidity) and secure stowage, demonstrating an expectation of care beyond the standard contractual obligations for general cargo.

• A large shipment of exotic fruits from South America is being transported to a European market. The success of the shipment depends heavily on maintaining precise refrigeration and ventilation throughout the voyage. The exporter might offer a small "hat money" payment to the captain, recognizing that the captain's vigilant monitoring and prompt action in case of any refrigeration issues are critical to the cargo arriving fresh and marketable, thus rewarding their diligent supervision.