In creating the Freight Market Information for dry cargo indices, the Baltic Exchange currently requires its panellists to report their opinions based on the following ship definitions
172,000 metric dwt, 190,000 cbm grain, gearless
Main Components Of A Vessel's Costs
For the purpose of estimating and accounting, the expenses of a vessel are usually divided into voyage costs and daily running costs.
The former are those expenses which are incurred solely when a vessel is engaged on a voyage, such as bunkers, port disbursements, stevedoring (if gross or berth terms), canal dues, commissions, etc. Additionally, there may be other expenses, such as war risk, over-age insurance, freight tax, local taxes and/or dues, income tax and despatch money etc.
The remainder of the operating expenses are those which accrue regardless of whether the vessel is engaged on a freight-earning voyage or not. Even when a vessel is idle awaiting orders these costs continue to be incurred. Even laid-up ships continue to cost money.
Listed below are the main components which make up the ‘operating expenses’ : 1.
Crew wages, overtime, pension contributions, insurance, travelling costs. 2. Victualing.
Insurance (Hull and Machinery and P&I).
Deck and engine room stores and spares, lubricating oil.
A suitable daily allowance to cover periodic costs such as dry-docking, special surveys, running repairs. 6.
Office and/or management costs.
Owners will also need to take into account interest on capital or loans and depreciation.
The charterer has the use of the ship for a specific trip or a period of time. Charterers may direct the vessel within the trading limits agreed, and, in normal circumstances, the Master must obey these orders.
Whilst the time charterer has the commercial control, the owner retains responsibility for the vessel and the Master and crew remain in his employment. The hire, usually calculated per...
Please join StudyMode to read the full document