Shipbroking and Chartering Practice
This chapter deals with practical aspects of chartering calculations concerning different charter forms and vessel types. Initially, the voyage estimation principles and stages are examined. Then, focus is given to various important terms, but above all on the explanation of the Time Charter Equivalent (TCE). Tanker chartering calculation particularities are finally highlighted by providing a thorough analysis of Worldscale. Practical examples are presented throughout the chapter to enlighten the commercial aspects of chartering and shipbroking business. The most critical case studies concern an analytical voyage estimate of a dry bulk vessel, some brief tanker examples in respect to the application of Worldscale and, finally, the methodology of converting a time charter hire rate to a Worldscale spot tanker rate, and vice versa.