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CHARTERINGDinesh N. Kutty

MT ELLI : Sinking

VOYAGE ESTIMATION

“VOYAGE ESTIMATION”

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IMPORTANT ASPECTS OF VOYAGE ESTIMATING

1.VOYAGE DAYS STEAMING TIME, PORT STAY, IDLE TIME( IF ANY) XXX

2.DIRECT OPERATING EXPENSESPORT DISBURSEMENTS XXXBUNKER COSTS (TO DETERMINE BUNKER CONSUMPTIONS) XXXCANAL DUES, ETC. XXX XXX

3. VOYAGE REVENUEGROSS FREIGHT ( TO DETERMINE CARGO QUANTITY LOADED) XXXESTIMATED DEMURRAGE (FOR POST FIXTURE VOYAGE ESTIMATE) XXX XXX

4.FINAL CALCULATIONS

A) NET FREIGHT EARNINGSGROSS FREIGHT XXX LESS: ADDRESS COMMISSION XXXLESS: BROKERAGE XXX XXX

B) GROSS OPERATING PROFIT (G.O.P)NET FREIGHT EARNINGS XXX                                                    LESS:  DIRECT OPERATING EXPENSES XXX XXX

C) TIME CHARTER YIELD (T.C.Y)GROSS OPERATING PROFIT  ‘DIVIDED BY’  VOYAGE DAYS XXX

D) OPERATING PROFIT /LOSS PER DAYTIME CHARTER YIELD  XXX                                                            LESS: STANDING CHARGES PER DAY XXX XXX

Important formulasa) gross operating profit (g.o.p)

net freight earnings ‘minus’ direct operating expenses.

b) time charter yield (t.c.y)

gross operating profit  ‘divided by’  voyage days.

c) operating profit /loss per day

time charter yield  ‘minus’ standing charges per day 

d) break‐even freight rate

total operating expenses / total cargo

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ILLUSTRATION # 1

MV ARIHANT DWT 47,000 MT GETTING FREE AT YOSU AND LOADED 45,000 MT, COKING COAL,LOADING AT HAYPOINT AND DISCHARGE AT XINGANG, $22 FIOT, 15000 SHINC LOADING, 10000 SHINC DISCHARGING, 5% TOTAL COMMISSION.

SPEED AT 12K AT 30/28 HO LADEN/BALLAST, 1.5 DO; BUNKER PRICE – $ 350/750 PER TON

PORT DUES – HAYPOINT: $60,000; XINGANG:$90,000

DISTANCE- YOSU/HAYPOINT :4054 NM; HAYPOINT/XINGJANG: 4189 NM

STANDING CHARGES: $ 5,000 PER DAY

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SOLUTION TO ILLUSTRATION #1

A) VOYAGE DETAILS

VESSEL : MV ARIHANTSPEED HO/DAY DO/DAY

BALLAST 12 K 28 T 1.5 TLADEN 12 K 30 T 1.5 T

BUNKER PRICESHO: $350 PER TON, DO: $750 PER TON

PORT COSTSHAYPOINT (LOADPORT) : $ 60,000, XINGJANG (DISPORT): $90,000

STANDING COSTS : $5,000/-

B) CARGO QUANTITY LOADED 45000 MT

C) VOYAGE DAYS & BUNKER CONSUMPTIONS

DAYS HO DO

YOSU TO HAYPOINT 14.0 392 21.00HAYPOINT (LOADPORT) 3.0 - 4.50HAYPOINT TO XINGANG 15.0 450 22.50XINJANG 4.5 - 6.75

---------------------------------------------TOTAL 36.5 842 54.75

(NOTE: DAYS ARE ROUNDED TO WHOLE NUMBER)

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SOLUTION TO ILLUSTRATION #1(CONTD…)

D) DIRECT OPERATING COSTS

BUNKER COSTS : HO: 842 MT X $ 350 = $ 294700/-DO: 54.75 MT X $ 750 = $ 41063/- $335,763/-

PORT COSTS: HAYPOINT : $ 60,000/-XINGJANG : $ 90,000/- $150, 000/-

TOTAL $485,763/-

E) FINAL CALCULATIONS

NET FREIGHT EANINGS

GROSS FREIGHT 45000 MT X $22 = $990,000/-LESS: COMMISSION 5% = $ 49,500/-

$940,500/-

GROSS OPERATING PROFIT (NET FREIGHT – DOE) = $454,737 /-

TIME CHARTER YIELD (GOP / VOYAGE DAYS) = $ 12,459/- per day

NET OPERATING PROFIT (TCY - STANDING CHARGES) = $ 7,459/- per day

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ILLUSTRATION # 2

MV SCORPIO DWT 73,000 GETTING FREE AT AQUABA AND POSSIBLE CARGO IS AS FOLLOWS :-60,000 MT 5% MOLOO, IRON ORE, MARMAGAO/GHENT, $12 FIOT, 25000 SHINC LOADING, 15000 SHINC DISCHARGING, 5% TOTAL COMMISSION.SPEED AT 13K AT 25/28 HO BALLAST/LADEN, 1.5 DO; BUNKER PRICE – $ 90/155 PER TONPORT DUES – MARMAGAO: $45000; GHENT:$86000; SUEZ: $115,000DISTANCE- AQUABA/MARMAGAO : 2850 NM; MARMAGAO/GHENT: 6300 NMSTANDING CHARGES: $ 5,500 PER DAY

(ASSUME, BUNKER RESERVE AS HO- 100 MT , DO – 50 MT, FRESH WATER – 300 MT, CONSTANTS – 200MT).

(NMIS STUDY MATERIAL)

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SOLUTION TO ILLUSTRATION #2

A) VOYAGE DETAILS

VESSEL : MV SCORPIOSPEED HO/DAY DO/DAY

BALLAST 13 K 25 T 1.5 TLADEN 13 K 28 T 1.5 T

BUNKER PRICESHO: $90 PER TON, DO: $155 PER TON

PORT COSTSMARMAGAO (LOADPORT) : $ 45,000, GHENT(DISPORT): $6300, SUEZ: $115,000

STANDING COSTS : $5,500/-

B) VOYAGE DAYS & BUNKER CONSUMPTIONS

DAYS HO DO

AQUABA TO MARMAGAO 9 225 13.5MARMAGAO (LOADPORT) 3 - 4.5MARMAGAO TO GHENT 20 560 30.0GHENT 4 - 6.0SUEZ 1 25 1.5

---------------------------------------------TOTAL 38 810 57.0

(NOTE: DAYS ARE ROUNDED TO WHOLE NUMBER, EXTRA ONE DAY ALLOWANCE ARE GIVEN FOR SUEZ CANAL TRANSIT)

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SOLUTION TO ILLUSTRATION # 2 (CONTD…)

TRANSIT)

C) DWT CALCULATIONS

DWT OF THE VESSEL : 73000 MT(-) HO FOR VOYAGE 810(-) DO FOR VOYAGE 57 (-) HO RESERVE 100 (-) DO RESERVE 50(-) FRESH WATER 300(-) CONSTANTS 200 : 1517 MT

DWCC : 71483 MT

BUT, THE CARGO QUANTITY IS 60,000 MT +/- 5%. ACCORDINGLY, THE CARGO QUANTITY IS 63,000 MT.

D) DIRECT OPERATING COSTS

BUNKER COSTS : HO: 810 MT X $ 90 = $ 75,150/-DO: 57 MT X $ 150 = $ 8,550/- $83, 700/-

PORT COSTS: MARMAGAO : $ 45,000/-GHENT : $ 86,000/-SUEZ : $ 115,000/- $246, 000/-

TOTAL $329,700/-

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SOLUTION TO ILLUSTRATION #2(CONTD…)

E)FINAL CALCULATIONS

NET FREIGHT EANINGS

GROSS FREIGHT 73000 MT X $12 = $876,000/-LESS: COMMISSION 5% = $ 43,800/-

$8,32,200/-

GROSS OPERATING PROFIT (NET FREIGHT – DOE) = $503,100 /-

TIME CHARTER YIELD (GOP / VOYAGE DAYS) = $ 13,239/- per day

NET OPERATING PROFIT (TCY / STANDING CHARGES) = $ 7,739/- per day

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ILLUSTRATION # 3

WITH THE FOLLOWING INFORMATION PREPARE A VOYAGE ESTIMATE AND CALCULATETC YIELD; NOP PER DAY AND THE BREAK EVEN FREIGHT RATE?

MV PANAMAX, 73,000 DWT ; PRESENTLY AT CAPETOWN; SPEED 14 K AT 33 T/DBALLAST AND 35T/D LADEN; DO 2 T/D; BUNKER PRICE 80 $/T AND DO 150 $/T; STANDINGCHARGES 10,500 $/DAY.

CARGO COAL 65,200 TONS; RICHARDS BAY/ROTTERDAM; 14$/T; 2.5% COMMISSION :15,000 T/D SHINC BOTH ENDS.

AFTER DISCHARGE THE VESSEL IS TO PROCEED TO US GULF AND THE ESTIMATESHOULD INCLUDE THIS INFORMATION.DISTANCES: CAPE TOWN / RICHARDS BAY - 920

RICHARDS BAY/ROTTERDAM - 7120 (VIA CAPE)ROTTERDAM / US GULF - 4880

PORT CHARGES: RICHARDS BAY – $15,000 AND ROTTERDAM - $60,000

(NMIS STUDY MATERIAL)

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SOLUTION TO ILLUSTRATION #3

A) VOYAGE DETAILS

VESSEL : MV PANAMAXSPEED HO/DAY DO/DAY

BALLAST 14 K 33T 2.0 TLADEN 14 K 35T 2.0 T

BUNKER PRICESHO: $ 80 PER TON, DO: $150 PER TON

PORT COSTSRICHARDS BAY (LOADPORT) : $ 15,000, ROTTERDAM (DISPORT): $60,000

STANDING COSTS : $10,500/-

B) CARGO QUANTITY LOADED 65,200 MT

C)VOYAGE DAYS & BUNKER CONSUMPTIONS

DAYS HO DO

CAPETOWN TO RICHARDSBAY 3.0 99 6.00RICHARDS BAY (LOADPORT) 4.0 - 8.00RICHARDS BAY TO ROTTERDAM 21.0 735 42.00ROTTERDAM (DISCHARGE PORT) 4.0 - 8.00ROTTERDAM TO US GULF 15.0 495 30.00

---------------------------------------------TOTAL 47.0 1329 94.00

(NOTE: DAYS ARE ROUNDED TO WHOLE NUMBER)

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SOLUTION TO ILLUSTRATION #3 (CONTD…)

D) DIRECT OPERATING COSTS

BUNKER COSTS : HO: 1329 MT X $ 80 = $ 106,320/-DO: 94MT X $ 150 = $ 14,100/- $120,420/-

PORT COSTS: RICHARDS BAY : $ 15,000/-ROTTERDAM : $ 60,000/- $ 75, 000/-

TOTAL $195,420/-

E) FINAL CALCULATIONS

NET FREIGHT EANINGS

GROSS FREIGHT 65200 MT X $14 = $912,800/-LESS: COMMISSION 2.5% = $ 22,820/-

$889,980/-

GROSS OPERATING PROFIT (NET FREIGHT – DOE) = $694,560/-

TIME CHARTER YIELD (GOP / VOYAGE DAYS) = $ 14,778/- per day

NET OPERATING PROFIT (TCY - STANDING CHARGES) = $ 4,278/- per day

BREAK EVEN FREIGHT RATE (TOT. OPERATING EXPS / TOT. CARGO) = $ 2.997 PMT

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ILLUSTRATION # 4

FROM THE DATA GIVEN BELOW PREPARE A VOYAGE ESTIMATE; CALCULATE T/C YIELD AND BREAKEVEN FREIGHT RATE.

DWT: 65000 MT CUBIC: 75,000 CUBIC METERS16K@45 T/D AT $ 80/T AND 2 T/D AT $ 150 $/TCARGO WHEAT SF 1.34, 54,000 TONS 5% MOLOOVANCOUVER / KOBE 4,800 NMFREIGHT 7.8 $/T COMMISSION 3.75%

PORT CHARGES $65,000 BOTH ENDSMISCELLENEOUS EXPENSES $ 25,000LOADING 3 DAYS, DISCHARGING 5 DAYS SHINC

(NMIS MODEL TEST PAPER)

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SOLUTION TO ILLUSTRATION #4

A) VOYAGE DETAILS

VESSEL : A BULK CARRIER (??)SPEED HO/DAY DO/DAY

STEAMING 16 K 45T 2.0 T

BUNKER PRICESHO: $ 80 PER TON, DO: $150 PER TON

PORT COSTSVANCOUVER (LOADPORT) : $ 65,000, KOBE (DISPORT): $65,000

B)CARGO QUANTITY LOADED

CARGO : WHEAT, S.F. 1.34NOMINATED QUANTITY : 54000 MT +/- 5 % I.E. MIN. 51300 MT & MAX. 56,700/-CARGO CUBIC CAPACITY : 75,000 CBMTOTAL QUANTITY LOADED = 75,000/ 1.34= 55,970 M.T.

C)VOYAGE DAYS & BUNKER CONSUMPTIONS

DAYS HO DO

VANCOUVER (LOADPORT) 3.0 - 6.00VANCOUVER TO KOBE 13.0 585 26.00KOBE (DISCHARGE PORT) 5.0 - 10.00

---------------------------------------------TOTAL 21.0 585 42.00

(NOTE: DAYS ARE ROUNDED TO WHOLE NUMBER)

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SOLUTION TO ILLUSTRATION #4 (CONTD…)

D) DIRECT OPERATING COSTS

BUNKER COSTS : HO: 585 MT X $ 80 = $ 46,800/-DO: 42MT X $ 150 = $ 6,300/- $53,100/-

PORT COSTS: VANCOUVER : $ 65,000/-KOBE : $ 65,000/- $130, 000/-

MISCELLANEOUS EXPENSES $ 25,000/-

TOTAL $208,100/-

E) FINAL CALCULATIONS

NET FREIGHT EANINGS

GROSS FREIGHT 55970 MT X $7.8 = $436,566/-LESS: COMMISSION 3.75% = $ 16,371/-

$420,195/-

GROSS OPERATING PROFIT (NET FREIGHT – DOE) = $212,095/-

TIME CHARTER YIELD (GOP / VOYAGE DAYS) = $ 10,100/- per day

BREAK EVEN FREIGHT RATE (TOT. OPERATING EXPS / TOT. CARGO) = $ 3.718 PMT

ILLUSTRATION # 5

MV “SPEEDSTAR” IS OPEN AT BALTIMORE AND IS DESCRIBED AS 66000 DWT,2491000 CUFT/GRAIN ON 45 FEET SUMMER DRAFT; FWA 12 INCHES, TPI 175;STANDING CHARGES 10,000 $ DAY, SPEED 13K, 45/41 HO LADEN/BALLAST, 3D.O.; BUNKERS 125/215 $/T.

CARGO 50,000 10% PETCOKE, SF 47 CUFT/T AT LAKE CHARLES 40 FEETFRESHWATER FOR ISKENDERUN, 15000/10000 SHINC/SHEX; $15/T FIOT; 5%TOTCOM

DISTANCES PORT DUESBALTIMORE / L.CHARLES 1600 NM L.CHARLES $31000L.CHARLES / ISKENDERUN 6500 NM ISKENDERUN $39000

CALCULATE TC YIELD AND DAILY RETURNS?(EXAM PAPER 2002)

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SOLUTION TO ILLUSTRATION # 5

A) VOYAGE DETAILS

VESSEL : MV SPEEDSTARSPEED HO/DAY DO/DAY

BALLAST 13 K 41T 3.0 TLADEN 13 K 45T 3.0 T

BUNKER PRICESHO: $ 125 PER TON, DO: $ 215 PER TON

PORT COSTSLAKE CHARLES (LOADPORT) : $ 31,000, ISKENDERUN (DISPORT): $ 39,000

STANDING COSTS : $10,000/-

B)CARGO QUANTITY LOADED

I)MAXIMUM LOADING POSSIBLE AS PER VESSELS CUBIC CAPACITY –

2491000 CUFT/GRAIN S.F: 47 CUFT/T= 2491000 / 47 I.E. 53,000 MT

II) MAXIMUM DRAFT AT LOADPORT IS 40 FEET & FWA IS 12 INCHES (1 FOOT)

VESSEL IS DISCHARGING AT ISKENDERU WHICH HAS NO DRAFT RESTRICTION & IS A SALT WATER PORT. HENCE, VESSEL CAN LOAD FOR 39 FEET ( 40 FEET - 1 FEET).

THE DRAFT IS 6 FEET LESS ( 45 – 39) I.E. 6 FEET I.E. 72 INCHES X 175 PER INCH = 12600 MT

MAX. DWT AVAILABLE IS 66,000 MT – 12600 MT = 53,400 MT

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SOLUTION TO ILLUSTRATION # 5 (CONTD…)

C)VOYAGE DAYS & BUNKER CONSUMPTIONS

DAYS HO DO

BALTIMORE TO LAKE CHARLES 5.0 205 15.00LAKE CHARLES (LOADPORT) 4.0 - 20.00LAKE CHARLES TO ISKENDERU 21.0 945 63.00ISKENDERU (DISCHARGE PORT) 6.0 - 18.00ALLOWANCE 1.0 45 3.00

---------------------------------------------TOTAL 37.0 1195 119.00

NOTE: 1) DAYS ARE ROUNDED TO WHOLE NUMBER2) ADDITIONAL ONE LADEN STEAMING DAY IS ASSUMED

D) DETERMINATION OF CARGO QUANTITY BASED ON DWT CALCULATIONS

DWT OF THE VESSEL : 66000 MTDWT AVAILABLE : 53400 MTLESS: HO FOR VOY : 1195 MTLESS: DO FOR VOY : 119 MT LESS: FUEL RESERVE : 150 MT (ASSUMED)LESS: FRESH WATER : 200 MT (ASSUMED)LESS: CONSTANTS : 200 MT (ASSUMED)

DWCC 51536 MT

THEREFORE, THE CARGO QUANTITY SHALL BE : 51,536 MT

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SOLUTION TO ILLUSTRATION # 5 (CONTD…)

E) DIRECT OPERATING COSTS

BUNKER COSTS : HO: 1195 MT X $ 125 = $ 149375/-DO: 119 MT X $ 215 = $ 25585/- $174,960/-

PORT COSTS: L.CHARLES : $ 31,000/-ISKENDERU : $ 39,000/- $ 70, 000/-

TOTAL $244,960/-

F) FINAL CALCULATIONS

NET FREIGHT EANINGS

GROSS FREIGHT 51536 MT X $15 = $773,040/-LESS: COMMISSION 5.00% = $ 38,652/-

$734,388/-

GROSS OPERATING PROFIT (NET FREIGHT – DOE) = $489,428/-

TIME CHARTER YIELD (GOP / VOYAGE DAYS) = $ 13228/- per day

NET OPERATING PROFIT PER DAY (TCY – STANDING COSTS) = $ 3228/- per day