In the lead up to the availability of the VS voyage estimation pack, I want to discuss a few of the major concepts.
The main purpose of running a voyage estimation is for the user to try and work out the 'per metric tonne rate' for a particular piece of voyage cargo.
In general, when brokers, shipowners and charterers talk about the market, and when one reads market reports, what we are mostly discussing are 'Time charter rate' not Voyage rates. So you will hear and read commentary saying that such and such vessel was fixed at USD 20,000 per day for a time charter trip from Singapore to Europe. Thats all well and good if you want to know the time charter rates, but the figure of USD 20,000 per day means nothing for a cargo owner who wants to move his cargo on a voyage basis ie a per metric tonne rate.
What does USD 20,000 per day convert to on a per metric ton basis they scream...
So this is the main purpose of the voyage estimation - to convert this Time Charter Daily Hire Rate into a meaningful Per Metric Ton "voyage rate". Alternatively if the charterer has given his/her 'voyage ideas' the shipowner and broker can plug in the voyage rate in order to work out the breakeven time charter rate!
Wrap your minds around that - lucky its early in the week hey..
Any questions then give me a hoy!
PS - Not all market discussions are based on time charter. Some well know KEY markets are discussed using voyage rates. But these trades tend to be very generic and thus allow for easy voyage rate comparisons. Examples of well know voyage based markets include USG / Japan grains and South Africa / Europe Coal routes.
- The Virtual Shipbroker
- Hi. I am a shipping company director, transport academic, author, family man and all round nice guy. I have worked as shipbroker, shipowner, freight trader and bulk charterer, in senior positions, with some of the largest and most disrespected (joke) companies in the world. Ask my advice on all things shipping and you will receive my blunt and always honest answer. Hang around to learn more about chartering and ship broker salaries, chartering and ship broker jobs, chartering and shipbroker recruitment agencies, cheap freight, maritime education, chartering and ship broker qualifications, become a ship broker, tips on how to be a successful bulk shipping executive, philosophy, Zen and the art of shipbroking, and much more. Yours The Virtual Shipbroker (recently proclaimed the guru of shipbroking) Copyright © 2009-17 by Virtualshipbroker