1. CHARTERING OF TANKERS

2. Tanker Trade - History Crude-produced commercially in USA in 1859
1861 Elisabeth Watts carried 900 wooden barrels to London
1866 German vsl. Glukauf – 8 tanks, steam engine
1913 first middle east refinery at Abadan started
Tankers were owned by Oil cos like Shell,trading trading between London Europe, USA & Russia
tankers of – tons size were built.

3. Tanker Trade – History 1940 large oil finds in Saudi Arabia.
1950 tkr size increased to tons.
1960 – VLCC over 2 lac DWT mostly ordered by Shell.
1979 largest tkr. / ship – tons ULCC mt Seawise Giant (currently trading as
mt Jehre Viking) was built.
ULCCs are committed to major producers/refiners

4. Tanker Trade – History Demand for tankers is measured in ton/mile.
Political/economical factor like closure of suez, source etc. influences no. /size of tankers required.
1939 to 1969 six fold increase in oil demand – 10 to 64 million Bbls/day.
Tanker trade got serious setback in 1973 due OPEC price increase
Four fold increase From $ 2.75 to $10.84/bbls in Jan 1974.
1982 increased to $ 34 which dropped below $10 in July due Iraq/Kuwait war?

5. Tanker Trade - History
What is the Current price of crude per Bbls? Indian/ OMC basket? Where to look up for daily update ?
depression in tkr mkt due OPEC price increase lead to vsl proceeding to lay up from new building yard - increased scrapping.
Oil & Tanker market operates within a framework formed by the crude oil reserves (Producing countries) vis-a-vis major consumers like USA, Europe, Japan, China, Korea & India.

6. TYPE OF CHARTER VOYAGE CHARTER FOR ONE VOYAGE
1 OR 2 LOAD PORT/ DISPORTS
FREIGHT, DEMURRAGE DEAD FREIGHT
BUNKER PORT CHARGES ON SHIP OWNERS A/C.
CARGO RELATED CHARGES ON CHARTERERS A/C.
TIME CHARTER
FOR TIME/PERIOD.
VESSEL AT CHARTERERS DISPOSAL.
MONTHLY CHARTER HIRE IN ADVANCE.
BUNKER & PORT CHARGES ON CHARTERERS ACCOUNT
CARGO RELATED CHARGES ON CHARTERERS A/C.

12. VOYAGE CHARTER : CRUDE : LPG : VOYAGE – RASTANURA TO VIZAG
SMAX ( MT) $ / MT
LS FREIGHT $ 3.95 MILLION RS CRORES AT WS 335
LPG :
VOYAGE – RASTANURA TO VIZAG
VLGC (39000 MT) $ / MT
LS FREIGHT $ 1.95 MILLION RS CRORES

13. Tanker Voyage Charter Parties
Bare Boat chartering – Lease the hull and machinery of the ship for a long period of time Charterers act as if he was the Owners of the ship.
Time chartering – enables the operator to cover their shipping requirements at a stable price other than bunker cost. Charter hire fixed for a particular period of chartering.
Voyage chartering – Freight rate as per prevailing market rate. used for spot requirements. Ship management totally in the hands of owners.
Consecutive Voyages and COA cover for a period of time but leaves the ship operations to the owners, as under voyage charter.

14. OWNER
(Revenue)
CHARTERER
(Transport)
THE CHARTER PARTY
(A contract)
VOYAGE
BAREBOAT
TIME
Consecutive
voyage
Trip Time Charter
Contract of
Affreightment

15. Tanker Voyage Charter Parties
ASBATANKVOY – Association of Ship Brokers & Agents (USA) Inc.
BP Voy 4
Exxon Mobil Voy 2005
Shellvoy 6

16. ASBATANKVOY
Well known and often used which may have a number of additional or rider side clauses which were added by Charterers.
Rider clauses re-states the main clause in the charter party.
Unless rider clauses are carefully drafted and related to each other and to the clauses in the printed form there is scope for error, duplication, inconsistency and subsequent litigation.

17. ASBATANKVOY – Charter Party
Part – I
Description and position of vessel
Laydays/Cancelling
Voyage
Cargo
Description of cargo
Rate/Billing
Laytime
Demurrage
Commission
General Average/Arbitration

18. ASBATANKVOY – Charter Party
Part – II
Warranty
Freight and Deadfreight
Berthing, Pumping and Mooring
Dues and other charges
Ice
Cleaning/Grades
Advances
Bills of Lading

19. ASBATANKVOY – Charter Party
PROTECTIVE CLAUSES
Clause Paramount
Jason Clause and General Average Clause
Both o Blame
War Clauses
Lien
Agents
Assignment/sub-let
Clean Seas
Arbitration

20. Rider Clause – Conoco Weather Clause
“Delays in berthing for loading or discharging and any delays after berthing which are due to weather conditions shall count as half laytime or, if on demurrage, half demurrage”

21. Rider Clause – Cargo Retention Clause
“In the event that any cargo remains onboard upon completion of discharge, Charterer shall have the right to deduct from freight an amount equal to FOB port of loading value of such cargo plus freight due with respect thereto provided that the volume of cargo remaining onboard is pumpable and determined by an independent surveyor. Any action or lack of action in accordance with their provision shall be without prejudice to any rights or obligations of the parties”.

22. Rider Clause – Over Age Insurance (Cargo Insurance)
“Any additional premium which might be placed on the cargo insurance by reason of the vessel’s age and/or condition shall be for Owner’s account, and Charterers shall be entitled to deduct the cost of any such additional premium from the freight”

23. Rider Clause – In Transit Loss Clause
“In addition to any other rights which Charterer may have, Owner will be responsible for the full amount of any in transit loss if in transit loss exceeds 0.3% and Charterer shall have the right to deduct from the freight an amount equal to the FOB port of loading cost or such missing cargo plus its pro rata cost of freight and insurance. In trasit loss is defined as the difference between gross standard vessel volumes after loading at the loading port and before unloading of the discharge port”

24. Rider Clause – Notice of Readiness
It the vessel tenders notice of readiness during its acceptance date range, laytime shall begin, subject to all other provisions of this agreement, upon the expiration of 6 hours after the tendering of NOR or on commencement of loading, whichever occurs first. If the vessel tenders NOR before its acceptance date range the NOR shall not be effective until 0001 hour on the first day of such range, and laytime shall begin on commencement of loading or 6 hours after the effecitve tender of NOR whichever occurs first. If the vessel misses cancelling date and in the event of charterers not exercising option to cancel the fixture time will commence to count when loading commences.

25. Tanker Time Charters Introduction Shipboard Personnel and Duties
Laws and Disputes
Liens and Sub Freight

26. Tanker Time Charters Introduction : Types of Time Charter :
Trip Time Charter - Short period, flexibility to charterers, commonly practiced veg.oil, chemicals,dry bulk cargo.
Time Charter - Voyage expenses, pumping at loadport and disport on charterers account.

27. Tanker Time Charters Shipboard Personnel and Duties
Duty to maintain- Due diligence by owners to maintain and restore the vsl to required condition, charterers right to putoff the vsl.
Limits of trading period- Charterer’s option.
Final voyage-Redelivery, where & when.
Trading limits-WIWL

28. Tanker Time Charters Shipboard Personnel and Duties
Laydays/Canceling-Charterer’s option.
Owners to provide-All provisions, wages, Ins.etc
Charterers to provide-Generally for dry cargo.
Rate & Payment of Hire-Delay in payment, tanker withdrawal clauses and etc.
Instructions and Logs-Performance monitoring.
Directions and conduct of vessel’s personnel

29. Tanker Time Charters Shipboard Personnel and Duties
Bunkers-Supply of quality bunkers.
Supernumeraries-Representative on Board.
Sub-letting-Liabilities from mal-performance.
Loss of vessel-Total loss or Constructive loss.
Off-Hire – Shelf time form specifies the time.
Periodical dry docking-Area of dry docking.

30. Tanker Time Charters Shipboard Personnel and Duties
Performance clause-Speed, bunker consumption and port stay.
Salvage-Apportionment of expense
Lien – Each party’s rights of lien.
Exception – Unplanned repairs & breakdown.
Injurious cargoes – Explosives.

31. Tanker Time Charters Shipboard Personnel and Duties
Laying up – Charterers and Owners to consult.
Requisition by Govt.
Protective clauses – Both to blame collision clause, New Jason clause, Clause Paramount.
TOVALOP & ITOPF – P&I Club Insurance.
Law and Litigation – English law.

32. Tanker Time Charters The Law & Dispute : Withdrawal –
Frustration.
Repudiatory Breach.
Exercising a right.
Set-off – Holding deduction against hire.
Speed and Consumption-Tolerance clause.
Off-hire-Loss of money, deduction of money.

33. Tanker Time Charters Lien for sub freight :
Prepayment of freight due to risk of shortages,delays etc that may affect delivery.
Lien on the cargo, freight and subfreight in the bill of lading
Lien is regarded as the floating charge against the assests of the head charterer.

34. CHARTERING COMMERCIAL MANAGEMENT Port Post fixture. Chartering.
Operation
Fixture Negotiation
Chartering.

35. CHARTER PARTY C / PARTY CLAUSES FINALISATION SIGNING OF NEGOTIATION
OF C / PARTY
SIGNING OF
C / PARTY.

36. CHARTERING VOYAGE CHARTER – ONE/TWO LOADPORT/DISPORT
COA – TOTAL QTY/TKR (OWN/ CHARTER)
TOOLS
MKT.
TREND
TIME – PERIOD CHARTER
FREIGHT
DEMURRAGE
C/HIRE
FREIGHT
DEMURRAGE
LAST FIXTURE

37. FIXTURE NEGOTIATION VOYAGE CARGO PARCEL SIZE LOADPORT DISPORT LAYDAYS
ENQUIRY
OFFERS
COUNTER
CONCLUSION
VOYAGE
CARGO
PARCEL SIZE
LOADPORT
DISPORT
LAYDAYS
LAYCAN
TIME CHARTERING
TYPE OF SHIP
DURATION
TRADING AREA
CARGO
SPL.REQUIREMENTS
VOYAGE
DESCRIPTION-SHIP
PARCEL SIZE
FREIGHT
DEMURRAGE
C / PARTY.
TIME CHARTER
DESCRIPTION
T / C PARTICULARS
SPEED/CONSUM.
PERIOD – RATE
EXCEPTIONS -CP

38. POST FIXTURE OPERATIONS
AGENCY
ARRANGE- MENT
ARRANGING
FUNDS
FREIGHT
COLLECTION
CO-ORDINATION
WITH
CHARTERER
CO-ORDINATION
WITH
SHIP

39. WHAT IS TANKER CHARTERING?
A PROCESS INVOLVES NEGOTIATIONS BETWEEN SHIP OWNERS & A CHARTERER (OIL CO.) FOR HIRING A SHIP (TIME/VOYAGE OR COA BASIS) FOR CARRIAGE OF CRUDE OIL/POL AT MOST COMPETITIVE RATES, TERMS & CONDITIONS.
FREIGHT RATES ARE INFLUENCED BY VARIOUS INTERNATIONAL SUPPLY DEMAND FORCES & OPPORTUNITY COSTS.
INTERNATIONAL FREIGHT MKT. HAS NEITHER FLOOR LEVEL NOR ANY CEILING.
DIRECT NEGOTIATIONS OR THRU BROKERS MOSTLY ON /PHONE/FAX WITH PROPER DOCUMENTATION/AUDIT TRAIL/RECORDING.

40. WHAT IS TANKER CHARTERING?
A BRIEF NOTE GIVING FIXTURE RECAP ON MAIN TERMS THROUGH /FAX IS EXCHANGED BETWEEN PARTIES AS EVIDENCE OF CONTRACT
AS PER INTERNATIONAL INDUSTRY PRACTICE, CHARTERING IS NOT A TWO BID PROCESS (I.E.TECH.& PRICE) BUT IS A COMPOSITE BID SYSTEM INVOLVING TECHNO-COMMERCIAL EVALUATION OF MULTIPLE PARAMETERS LIKE SPEED/DEAD FRT./YEAR BUILT ETC. HAVING ITS VARYING IMPACT ON COST
CREDENTIALS OF SHIP OWNERS IS CHECKED THROUGH IMB/ BIMCO/BROKERS BEFORE NEGOTIATION
CONSIDERABLE FINANCIAL EXPOSURE FOR BOTH – CHARTERER & SHIP OWNERS.

41. CHARTERING INVOLVES
ENQUIRY FOR VOYAGE CHARTER VESSEL – CARGO, PARCEL SIZE, LAY DAYS, LOAD/DISPORT, ETC.
ENQUIRY FOR TIME CHARTER VESSEL – TYPE OF SHIP, DURATION, TRADING AREA, CARGO, SPEED, BUNKER CONSUMPTION, PUMPING RATE ETC.
NEGOTIATION BETWEEN SHIP OWNERS/CHARTERERS THROUGH BROKERS BY ANALYSING MARKET TREND THROUGH VARIOUS INTERNATIONAL REPORTS LIKE CLARKSONS, DREWERY, BITR
FIXTURE RECAP ON SUBJECT TO MANAGEMENT / LOADPORT DISPORT APPROVAL

42. CHARTERING INVOLVES (CONTD.)
LIFTING SUBJECTS AND CONFIRMATION.
POST FIXTURE ACTIVITIES LIKE VOYAGE INSTRUCTION, SURVEYORS/AGENTS APPOINTMENTS ETC.
SIGNING OF CHARTER PARTY – VOYAGE OR TIME CHARTER.
SHIPPING OPERATIONS INVOLVING PAYMENT OF FREIGHT, DEMURRAGE, DEAD FRT., DEVIATIONS, OCEAN LOSS AND PERFORMANCE ANALYSIS.

43. ATTRIBUTES OF CHARTERING ACTIVITY
SHIPPING MARKET- HIGH VOLATILITY.
SUSCEPTIBLE TO SUDDEN GEO-POLITICAL CHANGES LIKE WEATHER, WAR, OPEC PRODUCTION, SCRAPPING / NEW BUILDINGS ETC.
“TIME” IS OF ESSENCE. HIRING OF RIGHT SHIP AT RIGHT PRICE AT RIGHT TIME.
SOUND TECHNO-COMMERCIAL KNOWLEDGE - A MUST FOR CHARTERING TEAM.
COMPLETE CONFIDENTIALITY & INTEGRITY
SENSITIVE TO SAFETY & HUGE LIABILITY FOR OIL POLLUTION.

44. FUNCTIONS – CHARTERING & SHIPPING
FOLLOWING SENSITIVE ACTIVITIES ARE INVOLVED:
FLOATING OF ENQUIRY
EVALUATION OF OFFERS
FREIGHT NEGOTIATIONS FOR CRUDE/PRODUCT VESSELS
POST FIXTURE WORK
COORDINATION WITH SUPPLIERS/LOADPORT/DISPORT/SHIPOWNER/SHIP & STATUTORY AUTHORITIES
FREIGHT MARKET ANALYSIS
PAYMENT OF CHARTER HIRE/FREIGHT /DEMURRAGE, PORT DUES,CANAL DUES ETC.
DEMURRAGE & OCEAN LOSS ANALYSIS.
TANKER PERFORMANCE
APPOINTMENT OF SURVEYORS /AGENTS AT FOREIGN/INDIAN PORTS.
ARRANGEMENT OF BUNKER SUPPLIES ETC.

45. BASIS FOR FREIGHT NEGOTIATIONS
SHIPPING FREIGHTS ARE NEGOTIATED IN TERMS OF WORLD SCALE RATES WHICH INDICATES MARKET TREND AT THE TIME OF NEGOTIATION.
BALTIC EXCHANGE LONDON PUBLISHES WS RATES FOR ALL PORTS ALL OVER THE WORLD ONCE IN A YEAR WHICH IS A BASE RATE.
BOTH SHIP OWNERS AND THE CHARTERERS NEGOTIATES FREIGHT RATE AFTER ANALYSING MARKET LEVEL (FOR SPECIFIC ROUTES) BASIS FOLLOWING INTERNATIONAL PUBLISHED REPORTS :
LTBP AFRA - LONDON TANKER BROKERS PANEL AVG. FRT. RATE ASSESSMENT
BITR – BALTIC EXCH. INTERNATIONAL TRADE ROUTES
CLARKSON INTELLIGENCE WEEKLY/ DREWARY & BROKERS

46. BENEFITS OF IN-HOUSE CHARTERING
DIRECT CONTACT WITH VESSEL OWNERS WORLD OVER
BETTER CONTROL/FLEXIBILITY.
SAVINGS ON ADDRESS COMMISSION :
- 2.5% ON FREIGHT PAYMENTS TO SCI OR
- 1% TO TRANSCHART.
FREIGHT OPTIMIZATION - FLEXIBILITY OF COMBINING CARGOES THROUGH SYNERGY WITH THE OMCS.

47. BENEFITS OF IN-HOUSE CHARTERING CONTD.
SELECTION OF RIGHT SHIP MEETING THE SPECIFIC REQUIREMENT OF PORT/CARGO.
GRADUAL GROWTH OF PROFESSIONALISM IN CHARTERING & SHIPPING IN OMC - ENHANCED INTERNATIONAL CORPORATE IMAGE AS CRUDE BUYER & CHARTERER LIKE BP, SHELL, CHEVRON & ESSO.
TIMELY FEEDBACK TO INT.TRADE DEPT. ON FRT./ DEMURRAGE RATES WHILE BUYING SPOT CARGOES.
STANDARDISATION OF COMPANY SPECIFIC C/PARTY CLAUSES.

48. Pre requisites…
BOARD APPROVAL OBTAINED FOR ADOPTING OMC’S ‘SHIPPING POLICY’ HAVING A BLEND OF IOC/SCI PROCEDURES OF NEGOTIATIONS/ APPROVALS.
PANEL OF BROKERS FINALISED
INSA & DG-SHIPPING HAVE BEEN APPROACHED FOR REGISTRATION AS CHARTERERS
REVISION OF LAM – DELEGATION OF AUTHORITIES THROUGH FC FOR APPROVING PROMPT / HIGH VALUE INTERNATIONAL NEGOTIATIONS WITHIN THE DEPT. HAS BEEN PROPOSED
TRAINING OF PERSONNEL ON CHARTERING & SHIPPING IS IN PROGRESS

49. Pre requisites….
EXPERIENCED CHARTERING OFFICER FROM SCI ON DEPUTATION TO OMC.
SEPARATE ROOM FOR CHARTERING DESK, SPACE FOR C & S DEPT.
MOBILE & ISD FACILITY WITH APPROPRIATE HIGHER LIMIT OF REIMBURSEMENT.
IT SUPPORT FOR DEVELOPMENT OF SOFTWARE PROGRAMMES ON VOYAGE ESTIMATION, DISTANCE TABLE ETC.
SUBSCRIPTIONS TO INTNL. MAGAZINES, PERIODICLES AND MARKET REPORTS.

50. CHARTERING PROCEDURE

51. Policy aims at …
“First right of refusal” cargo preference to be given to Indian Flag Ships, without any frt.preference, for oil imports - FOB lifting.
Standard Shipping policy for PSU Oil cos.developed in accordance with DGS & MOS guidelines.
Strictly follow common & transparent tendering/negotiations procedure while chartering tankers.

52. Policy aims at…..(contd.)
Firm FOB requirements to be circulated to empanelled Brokers / all Indian/foreign ship Owners /INSA /DGS simultaneously.
Different process of Negotiations for:
1) No Indian S/owner has quoted
2) Indian ship owner(s) has also
quoted

53. Policy aims at…..(contd.)
Fixtures on subjects:
- Management/DGS approval.
- Loadport / suppliers / disport approvals.
- DGS clearance on case to case basis
Lifting subjects & conclusion of fixtures.
Signing of Charter party – Std. Clauses for time & Voyage charters.

54. Brief out line of CHARTERING PROCEDURE

55. Floating of Enquiry in the Market
Enquiry for tanker requirement will be sent simultaneously to the empanelled brokers and Indian Ship-owners through /fax.
Copies to DG (Shipping) and Indian National Ship owner’s Association (INSA) through / fax.
Obligatory for Owners / Brokers to keep offers valid till a specified time/date indicated in the enquiry.

56. Receipt of offers from Owners/Brokers
Receipt of offers shall be through :
Dedicated box with password protection. Separate mailboxes for receipt of offers against each enquiry.
A dedicated fax in a locked room - as an alternate mode.
At the designated time for receipt of offers specified in the enquiry Offers are printed/collated from the box (or at the expiry of the extended time).

57. Receipt of offers …..contd.
Unsolicited / Mid way offers will not be considered.
As a standard procedure, bidders will be required to submit hard copy of the offer and other related communications for records.
The time for submission of offers may be suitably extended, if required

58. Evaluation of Offers: The offers will be ranked on the basis
of freight quoted.
Demurrage rate and other terms &
conditions to be negotiated.

59. Negotiations/counters
The process of negotiation:
(A) Incase, No Indian Ship-Owner has quoted
Negotiation will be held with all the technically acceptable bidders indicating their respective ranking.
A ‘firm’ counter will be given to L1 bidder, the counter to other bidders will be ‘open’ (i.e. Open1, Open2 etc.).
The original rankings of the bidders may change, basis response to the counter (s).
In case of no agreement, to explore other alternatives.

60. Negotiations/Counters-contd.
(B) Indian ship-owner (s) has also quoted
In case offer (s) are received from Indian ship-owner (s) also, the Indian ship- owner(s) will have the ‘first right of refusal’.

61. Negotiations/Counters-contd.
(A) Indian ship-owner is L1
Firm offer to L1 Indian Ship owner
And Open to other Indian S/O,irrespective of their ranking along with all tech.acceptable Foreign S/Owners.
Ranking of bidders will be disclosed.
If neg. with Foreign S/O is successful,Indian S/O will be asked to match the rate.
Failing which Foreign S/Os ship will be fixed.

62. Negotiations/Counters-contd.
(B) Indian ship owner is not L1
Indian S/Owners will be asked to match rate of foreign S/O L1 rate.
If more than one Indian S/O match rates,then original lowest ranking amongst Indian S/O will fixed on subjects.
If counters are to be given, firm counter to L1 Indian S/O & open to all Indian as well as foreign S/Owners irrespective of their rankings.

63. Negotiations/Counters- contd.
Indian S/O not L1 in negotiations,they will be asked to match lowest rate of Foreign S/O.
If nobody matches the lowest rate fixture will be finalised with foreign S/Owner.
All counter shall be sent/received within a specified time.

64. Fixtures on Subjects:
Once Neg. are concluded fixture will be confirmed on “Subjects”with time schedule to carry out following activities:
Charterer’s Mgt.approval
Terminal/Suppliers approval
To arrange for license from DG(Shipping)
Obtain record note of neg. / Fixture note from the Brokers/Owners for record
All parties to provide record note of telephonic
converation

65. Charter party: Adoption of customised Charter party:
Voyage C/P –BPVOY 4 – ASBATANKVOY
Time C/P – SHELL TIME 4
Coastal Time C/Party
Contract of Affreightment (COA)
Coastal voyage C/party- ASBATANKVOY

66. Crude oil: Proposed Ratio of chartering
COA – To cover all voyages –Appx. 6 MMT
Time charter:
LR I (1) Indigenous crude Ravva/MH
SUEZ MAX (1) - to load term crude ex
RTA-Mumbai (MR)
& Basrah – Vizag (VR)

67. Product - Coastal movements:
Proposed Ratio of chartering
Product - Coastal movements:
Time charter: (Thru TCC- Industry tender)
WO - Size / No. of vsls.
BO - Size / No. of vsls.
LPG – Size (Time charter)
Product imports: on C & F basis.
Product Exports: on FOB basis.

68. THE MARKETING STRUCTURE

69. We shall have a look at … Tanker Market structure Worldscale A F R A
Factors which have influenced freight market levels

70. Tanker Market Structure
3 Players
Owners
Charterers
Brokers 70

71. The Ship-broker Collects and distributes information about the markets
Acts as an intermediary for a negotiation
Provides the skill and expertise to deal with the post fixture administration & operations
Ethical standards ???

72. The Tanker Market Works very quickly Address commission Brokerage
Negotiations on phone or Messenger
Recap via or Fax
Asbatankvoy is widely used standard Charter party with additional clauses

73. Worldscale
Easy and common reference point for negotiations and to know the market trends
Takes into account the different port costs as well as different steaming time to each of the ports
Owners earn approximately the same equivalent time charter return whichever port of discharge is nominated
The basic rate is described as the “flat” rate of WS100 so that a rate of WS 120 is 20% more than the flat rate
The rates are per mt

74. Worldscale Published once in a year on 1st Jan
Calculations are made on a round voyage basis
Standard vessel of dwt
Standard speed of 14.5 knots on 55 mt (380 cst) per day plus 100 mt per round voyage and 5 mt per port
Port time of 4 days plus 12 hours for each extra port used
Fixed hire rate of US $ 12,000 per day
Average bunker prices (1st Oct to 31st Sep prior to the year in question)
Port costs based on info provided by the port authorities
24 Hours allowed for Panama Canal and 30 Hours for Suez Canal

75. Worldscale Some loadports have 2 rates
Via Cape of Good Hope denoted by C
Via Suez Canal denoted by S
Why ???
Mina al Fahal/London $20.68C 21,350 miles
Loadport ?
Discharge Port ?
Rate per MT ?
Via ?
Distance between Loadport and Discharge Port ?
Rates ex Arabian Gulf are given to a waypoint which is “Quoin Island”

76. Worldscale
Variable Differential usually apply where the port charges on a given ship will be assessed differently based on the cargo, loading / unloading and discharge facilities
Fixed Differentials are applied in a different way to calculate the freight earned. These are usually based on Gross Tonnage, Cargo Qty or Distance and are not applied as percentage to WS flat rate
Produced by two non-profit making organisation ensuring independence from external bias & narrow market views

77. A F R A Developed by Shell and BP
Accepted as a basis for assessing transportation costs for inter-company movements of oil
Compiled by the London Tankers Broker Panel and based on all known fixtures in the market and transport agreements by oil companies
For GP, MR, LR1, LR2, VL & ULCC
Available only to the subscribers

78. Factors influencing the freight markets
Political events
Oil demand
New building activity
Tanker scrapping
External pressures