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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 © 2020 by Virtualshipbroker Contact virtualshipbroker@yahoo.com

Thursday, June 4, 2009

Fixing Machine - Tip 4.

Does a broker need to know how to run a voyage calculation to be a star. No - but it helps.

20 years ago I would guess that 5 percent of brokers could run a voyage calculation. These days maybe 20 percent know the basics. Many brokers concentrate on time charter tonnage and orders and therefore have no need to learn how to make a voyage calculation.


So what are the benefits then of knowing this skill?

1. You can quickly assess the prospects of your charterers business.

2. It shows you are taking an active interest in your charterers business

3. It gives you an 'IN' when it comes to talking shop with both the charterer and the shipowner. This on many instances will allow you to secure the channel of negotiation.

4. By knowing how the freight price is calculated it allows the broker to offer some solutions taht other brokers may be unaware of. For example - the voyage charter order may quote a discharge rate of 10,000 shinc. Being a good broker you are aware that at the discharge port in question that they regulary achieve 15,000 shinc discharge. Armed with this knowledge you will now be able to work out the cost of this disparity (through adjusting your voyage calc) and show both parties the outcome. This is called finding solutions to help bring a fixture together.

Good broking - send me the recap!

To review the revolutionary Vs Voyage estimation pack click here


  1. Does doing a voyage calcuation require understanding of "technical aspects of ships" that you mention in Insider's Guide? If so, is there a quick reference book out there that brokers use?

  2. Hi Peter

    No you dont need to know technical aspects of ships. Running a voyage calc is a skill that is of primary importance for shipowners and charterers. It is the way they evaluate their business and the price of their ships.

    So you dont need to know technical aspects of ships but you do need to know the mathematics and the equations.

    Most people who run voyage calculations (these days) use software. You mereley plug in the figures and badabang you have done your voyage calculation. You also need to know the market.

    I will discuss the specific aspects of a voyage calculation (once i get some time) in later posts.

    (Reference books - I think the baltic exchange has a book regarding voyage calculations.)

  3. Dear All

    Due to popular demand I am currently putting together a work book of various voyage estimating examples plus explaining the techniques and the art in calculating them effectively. Running a ballpark voyage estimation is an incredibly important skill for any good broker. It is also a brilliant way to learn how your customer thinks. Voyage estimating is the cornerstone of how shipowners come up with their freight rates for any particular piece of voyage business.

    Over 20 years in the business I have run thousands of voyage estimations. I have run them in my capacity as a shipowner, freight trader, shipbroker and charterer. For each, the aim is slightly different. All the tricks and assumptions will be revealed.

    Should be available over the next month or so.

  4. Dear sir im really curious on what is the method to use for owner or Charter to calculate when taking vsl on time charter

  5. Hi VS,

    I was wondering why do Voyage Charter quotes alwayz differ from the port quotes. I mean why charterers give SHEX terms when we know its SHINC? Why Loading rate is given 10000 when its 15-20000 in actual ?

  6. Excellent question - i will answer in a new post!

  7. Hi

    As an intern in a shipbroking company I m running some VCalc to perfectly understand how the frt is made...
    I am wondering if you put together the work book you were regarding to do 18 ms ago...

  8. And...NEVER send a ship into the Indian subcontinent during monsoon. And...NEVER abandon your vessel in North Africa during the Holy Ramadan. Ask me how I know!

  9. Pls help. I am depressed to find my inability to answer this question: Why do they add Freight to the expenses while calculating voyage estimantion

  10. The Virtual ShipbrokerNovember 25, 2011 at 5:55 PM

    They do not add freight to the expenses. Freight is what you are trying to find out. ie the result you are looking for.

  11. In a voyage estimation question, a time charter vessel is fixed for a final voyage. The aim is find the daily net profit. But they have mentioned both Daily Charter Hire & also the freight in USD PMT. Why is that? Should we not use only the daily charter hire rate for calculations? Kindly advice.