Presentation on theme: "1 CHARTERING OF TANKERS. 2 Tanker Trade - History Crude-produced commercially in USA in 1859 1861 Elisabeth Watts carried 900 wooden barrels to London."— Presentation transcript:
1 CHARTERING OF TANKERS
2 Tanker Trade - History Crude-produced commercially in USA in 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.
large oil finds in Saudi Arabia tkr size increased to tons – VLCC over 2 lac DWT mostly ordered by Shell largest tkr. / ship – tons ULCC mt Seawise Giant (currently trading as mt Jehre Viking) was built. ULCCs are committed to major producers/refiners Tanker Trade – History
4 Demand for tankers is measured in ton/mile. Political/economical factor like closure of suez, source etc. influences no. /size of tankers required 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 increased to $ 34 which dropped below $10 in July 86 - due Iraq/Kuwait war? Tanker Trade – History
5 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. Tanker Trade - History
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 : 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) BAREBOAT TIME VOYAGE Trip Time Charter Consecutive voyage Contract of Affreightment
15 Tanker Voyage Charter Parties zVoyage Charter Parties ASBATANKVOY – Association of Ship Brokers & Agents (USA) Inc. BP Voy 4 Exxon Mobil Voy 2005 Shellvoy 6
16 ASBATANKVOY zWell known and often used which may have a number of additional or rider side clauses which were added by Charterers. zRider clauses re-states the main clause in the charter party. zUnless 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 zPart – I zDescription and position of vessel zLaydays/Cancelling zVoyage zCargo zDescription of cargo zRate/Billing zLaytime zDemurrage zCommission zGeneral Average/Arbitration
18 ASBATANKVOY – Charter Party zPart – II zWarranty zFreight and Deadfreight zBerthing, Pumping and Mooring zDues and other charges zIce zCleaning/Grades zAdvances zBills of Lading
19 ASBATANKVOY – Charter Party zPROTECTIVE CLAUSES zClause Paramount zJason Clause and General Average Clause zBoth o Blame zWar Clauses zLien zAgents zAssignment/sub-let zClean Seas zArbitration
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 vessels age and/or condition shall be for Owners 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 zIt 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 Introduction : Types of Time Charter : 1.Trip Time Charter - Short period, flexibility to charterers, commonly practiced veg.oil, chemicals,dry bulk cargo. 2.Time Charter - Voyage expenses, pumping at loadport and disport on charterers account. Tanker Time Charters
27 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- Charterers option. Final voyage-Redelivery, where & when. Trading limits-WIWL Tanker Time Charters
28 Shipboard Personnel and Duties Laydays/Canceling-Charterers 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 vessels personnel Tanker Time Charters
29 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. Tanker Time Charters
30 Shipboard Personnel and Duties Performance clause-Speed, bunker consumption and port stay. Salvage-Apportionment of expense Lien – Each partys rights of lien. Exception – Unplanned repairs & breakdown. Injurious cargoes – Explosives. Tanker Time Charters
31 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. Tanker Time Charters
32 The Law & Dispute : Withdrawal – (a)Frustration. (b)Repudiatory Breach. (c)Exercising a right. Set-off – Holding deduction against hire. Speed and Consumption-Tolerance clause. Off-hire-Loss of money, deduction of money. Tanker Time Charters
33 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. Tanker Time Charters
34 CHARTERING Post fixture. Port Operation COMMERCIAL MANAGEMENT Chartering. Fixture Negotiation
35 CHARTER PARTY C / PARTY CLAUSES NEGOTIATI ON FINALISATION OF C / PARTY SIGNING OF C / PARTY.
36 CHARTERING VOYAGE CHARTER – ONE/TWO LOADPORT/ DISPORT TIME – PERIOD CHARTER COA – TOTAL QTY/TKR (OWN/ CHARTER) TOOLS MKT. TREND FREIGHT DEMURRAGE C/HIREFREIGHT DEMURRAGE LAST FIXTURE
37 FIXTURE NEGOTIATION ENQUIRYOFFERS COUNTERCONCLUSION 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 CO- ORDINATION WITH CHARTERER CO- ORDINATION WITH SHIP AGENCY ARRANGE- MENT ARRANGING FUNDS FREIGHT COLLECTION POST FIXTURE OPERATIONS
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 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. CHARTERING INVOLVES (CONTD.)
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 FLOATING OF ENQUIRY EVALUATION OF OFFERS FREIGHT NEGOTIATIONS FOR CRUDE/PRODUCT VESSELS POST FIXTURE WORK COORDINATION WITH SUPPLIERS/LOADPORT/DI SPORT/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. FUNCTIONS – CHARTERING & SHIPPING FOLLOWING SENSITIVE ACTIVITIES ARE INVOLVED:
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 BOARD APPROVAL OBTAINED FOR ADOPTING OMCS 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 Pre requisites…
49 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. Pre requisites….
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 owners 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 The offers will be ranked on the basis of freight quoted. Demurrage rate and other terms & conditions to be negotiated. Evaluation of Offers:
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 Subjectswith time schedule to carry out following activities: Charterers 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 Proposed Ratio of chartering Crude oil: -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 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 … zTanker Market structure zWorldscale z A F R A zFactors which have influenced freight market levels
71 The Ship-broker zCollects and distributes information about the markets zActs as an intermediary for a negotiation zProvides the skill and expertise to deal with the post fixture administration & operations zEthical standards ???
72 The Tanker Market zWorks very quickly zAddress commission zBrokerage zNegotiations on phone or Messenger zRecap via or Fax zAsbatankvoy is widely used standard Charter party with additional clauses
73 Worldscale zEasy and common reference point for negotiations and to know the market trends zTakes into account the different port costs as well as different steaming time to each of the ports zOwners earn approximately the same equivalent time charter return whichever port of discharge is nominated zThe basic rate is described as the flat rate of WS100 so that a rate of WS 120 is 20% more than the flat rate zThe rates are per mt
74 Worldscale zPublished once in a year on 1 st Jan zCalculations are made on a round voyage basis zStandard vessel of dwt zStandard speed of 14.5 knots on 55 mt (380 cst) per day plus 100 mt per round voyage and 5 mt per port zPort time of 4 days plus 12 hours for each extra port used zFixed hire rate of US $ 12,000 per day zAverage bunker prices (1 st Oct to 31 st Sep prior to the year in question) zPort costs based on info provided by the port authorities z24 Hours allowed for Panama Canal and 30 Hours for Suez Canal
75 Worldscale zSome loadports have 2 rates yVia Cape of Good Hope denoted by C yVia Suez Canal denoted by S yWhy ??? zMina al Fahal/London $20.68C 21,350 miles yLoadport ? yDischarge Port ? yRate per MT ? yVia ? yDistance between Loadport and Discharge Port ? zRates ex Arabian Gulf are given to a waypoint which is Quoin Island yWhy ???
76 Worldscale zVariable Differential usually apply where the port charges on a given ship will be assessed differently based on the cargo, loading / unloading and discharge facilities zFixed 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 zProduced by two non-profit making organisation ensuring independence from external bias & narrow market views
77 A F R A zDeveloped by Shell and BP zAccepted as a basis for assessing transportation costs for inter-company movements of oil zCompiled by the London Tankers Broker Panel and based on all known fixtures in the market and transport agreements by oil companies zFor GP, MR, LR1, LR2, VL & ULCC zAvailable only to the subscribers
78 Factors influencing the freight markets zPolitical events zOil demand zNew building activity zTanker scrapping zExternal pressures