What are spot charters?
A spot charter is generally a contract to carry specific cargo from a load port to a discharge port at a per-day rate or a per-ton carry amount, depending on the agreement. Usually, the shipping rate is the current market rate.
What does TCE mean in shipping?
Time charter equivalent
Time charter equivalent (TCE) is a shipping industry measure used to calculate the average daily revenue performance of a vessel.
What is time charter in shipping?
On time charter, the charterer undertakes to hire the ship for a stated period of time or for a specified round-trip voyage or, occasionally, for a stated one-way voyage, the rate of hire being expressed in terms of so much per ton deadweight per month.
What is a time charter agreement?
A time charter is a time-bound agreement, as opposed to a voyage charter. The shipowner leases a vessel to a charterer for a fixed period of time, and they are free to sail to any port and transport any cargo, subject to legal regulations.
What is the difference between bareboat charter and time charter?
In Bareboat Charter, ships may be chartered or leased for a Voyage Charter or a Time Charter. A charterer generally obtains the use of the whole or part of a ship for a voyage under a voyage charter. A charterer generally obtains the use of the whole of a ship for a period of time under a time charter.
What is spot fixture in shipping?
by Ship Inspection. Fixture. To “fix” a ship is to determine or settle a contract (the Charterparty) for its employment. “Fixture” is the word that indicates the contract has been made and the negotiations to charter the ship have been concluded.
What is the difference between time charter and bareboat charter?
The owner is paid by the charterer on a lump-sum or per-ton basis. While the owner pays for the port costs (except stevedoring) and the fuel costs. A bareboat charter is also referred to as a demise charter. Under this the owner of the ship gives its possession to a charterer who hires his own crew and master.
How is TCE calculated in shipping?
Formula: TCE = net revenue / days of voyage Variables like load and discharge rates, a vessel’s speed and fuel consumption, and port costs are based on extensive market surveys and can be easily adjusted on feedback from industry participants.
What is VLCC rate?
Average time charter equivalent rates for VLCCs are now at minus $22,000 daily, according to the Baltic Exchange. Those assessments do not reflect the higher earnings for scrubber-fitted vessels, nor account for the speed, or the engine efficiency of modern tankers.
What are the types of chartering?
There are three main types of charters – voyage charter, time charter, and demise charter. The demise charter is often known as a bareboat charter, and grants ownership or possession of the vessel to the charterer subject to certain time-bound conditions.
What is laytime and Laycan?
Laycan means that certain period within the Layday Period and the earliest date at which loading (Laytime) can commence and the latest date upon which the Vessel can arrive at its appointed loading place without being at risk of being canceled.
Why is it called bareboat?
Also referred to as a ‘skipper yourself’ bareboat charter. It is called “bare” because it is like hiring a car, a caravan or a houseboat. The boat doesn’t come with a skipper or crew, you yourself become the skipper and crew, and you drive the boat yourselves, wherever you want to go!
What is the meaning of bareboat charter?
Bareboat Charter — an agreement between a ship owner and a charterer (an individual or company chartering a vessel) that essentially gives the charterer complete responsibility for the vessel and its operation over the course of the charter.
What are the three components of ship chartering?
The 3 Main Types of Ship Charters. Voyage Charter. Time Charter. Bareboat Charter.
What is a TCE rate?
The time charter equivalent (TCE) rate is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company’s performance despite changes in the mix of charter types (i.e., spot charters, time charters and bareboat charters) under which the vessels may be employed …
How long is a VLCC?
tankers. Very large crude carriers (VLCCs). These ships, with a length of some 330 metres (1,100 feet), have capacities between 200,000 and 320,000 dwt. They carry in the area of two million barrels.
What is the difference between spot charter and Time Charter?
In contrast, a time charter is generally a contract to charter a vessel for a fixed period at a set daily rate. Under time charters, the charterer bears voyage expenses. Under both spot charter contracts and time charter contracts, shippers are responsible for paying vessel operating expenses.
What is timetime charter coverage?
Time charter coverage is often illustrated by contract coverage, which is defined as “the percentage indicating the part of shipping days that are contracted for a specific period.”
What are the rights of the charterer in a time charter?
The charterer only has the right to ‘use’ the vessel as stated in the Time Charter. This important distinction implicates that if any damages arising from any negligence, the shipowner is accountable for the negligence as charterer has no ownership interest or possession rights of the vessel.