Definition
A ship still needs cash: crew draw advances against wages, the slop chest takes money, and small local bills are settled by the master. The owner or manager sends the funds to the port agent, who withdraws the notes, brings them on board and has the master sign a receipt. The cost is the agent's handling fee plus the bank's charges, and the amount, currency and denominations are set in the owner's instructions.
Cash in transit is a real risk. ITIC's claims review describes a master's safe being robbed of USD 10,000 and an agent robbed of USD 15,000 while carrying CTM to a ship — both paid under loss-of-money cover. That is why owners keep CTM amounts small, insist on two-person delivery and a signed receipt, and check that the agent's insurance covers money in transit.[1]
On the platform, CTM is arranged through a port agent as part of husbandry at the call, alongside crew changes and the delivery of spares.
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Sources
- [1] ITIC Claims Review — Cash in transit and money insurance (17 Apr 2013) — https://www.itic-insure.com/our-publications/claims-review/cash-in-transit-and-money-insurance-5923
A working definition for buyers, not legal advice — the contract, the convention text and your club or class have the last word.