Voyage Estimates

Question 1

Voyage Estimating

Answer 1

a method for calculating the estimate return to the vessel owner or operator

estimating aids the owner in deciding which cargoes/employment to pursue

Question 2

Cargo inquiries

Answer 2

in an ideal market, the Owner might be looking at several different offers

Question 3

What is the formula for

T/C Equivalent

Daily Net Return

Answer 3

T/C Equiv (daily net return)= gross revenue-commissions-voyage expenses/total voyage days

Question 4

For a voyage charter,

the gross revenue to the Owner is:

Answer 4

Freight and Demmurage

Question 5

For a voyage charter,

the expenses to the owner are:

Answer 5

Fuel costs, canal tolls, port charges, load/disch costs, despatch, etc.

Question 6

For a time charter trip,

the gross revenue is:

Answer 6

time charter hire and ballast bonus

Question 7

For a time charter trip,

the expenses to the Owner, if any, are:

Answer 7

fuel cost, pilotage, and other costs to bring the vessel to the delivery point

(voyage estimates DO NOT determine the market)

Question 8

From the Owner’s standpoint,

we catergorize vessel costs into three main categories:

Answer 8

Capital Costs, Operating Costs, and Voyage Costs

Question 9

Capital Costs

(costs of any vessel financing)

Answer 9

may have an effect on Ows attitude towards long term employment, but usually disregarded when estimating on spot business

Question 10

Operating Costs

“running costs”

Answer 10

include: crew wages, stores and supplies, lube oil, maintenance and repair, insurance. typically, these costs are not affected by the voyage on which the vessel is employed

often calculated on an annual basis, expressed as Daily Operating Costs

Question 11

Majority of operating costs can only be avoided by

Laying up the Vessel

Answer 11

stop using it for a period of time

Question 12

What does it mean when the market is close to:

Layup Level

Answer 12

Market rates are approaching such a low level that it might be better to temporarily lay up the vessel

Question 13

Voyage Costs

Answer 13

costs that are directly related to the concerned voyage: bunkers, port charges, cargo handling expenses, canal tolls, extra insurance or additional premiums, hold cleaning commissions

Question 14

Bunkers cost

Answer 14

the cost of bunkers is determined from the bunkering plan

Question 15

Port Charges

Answer 15

tonnage taxes, harbor dues, pilots, tugs and liner handlers, dockage and wharfage charges, customs and immigration fees, agency fees (includes agency attendance, telex fees, phone)

Question 16

Loading and Discharging costs

Answer 16

depending on freight terms ( would be stevedoring costs), possible trimming or leveling of cargo, possible tallymen or clerks

Question 17

Lightering cost

Answer 17

some ports (ie India) require lightering of dry bulk cargo and is often a cost from the owner

Question 18

Canal tolls

Answer 18

based on vessel’s canal net tonnage (typ found in description), typically higher than the flag net tonnage, canal authority will usually measure tonnage on vessels first transit and issue permanent tonnage certificate

Question 19

Insurance cost

Answer 19

overage premium, additonal premium for breaking IWL, war risk insurance

Question 20

Hold cleaning

Answer 20

cleaning of hold for the next cargo, removal of any dunnage (word usually used to aid in blocking and bracing of cargoes)

Question 21

Commission

Answer 21

could be commission paid to a broker, can also be an address commission paid to Chrtrs freight dept