What is a Worldscale flat rate?

This method is known as “Points of Scale” and thus Worldscale 100 means 100 points of 100 per cent of the published rate or, in other words, the published rate itself, sometimes referred to as Worldscale flat, while Worldscale 250 means 250 points or 250 per cent of the published rate and Worldscale 30 means 30 points …

What is worldscale freight rate?

Worldscale is used to calculate freight rates for oil tankers and product carriers. It is a tanker chartering tool, its principle is to provide the ship-owner with the same net return per day irrespective of voyage performed for the Worldscale Standard Vessel at WS100.

How is worldscale calculated?

Worldscale is based on an average vessel with average costs earning an average rate. It works on the basis that, using the realistic costs of operating an imaginary standard tanker of “average” size on an “average” 15,000- mile round voyage, the break-even freight rate for that ship on that route can be calculated.

What is Afra scale?

This is a freight billing system which is composed of the weighted average of independently owned tanker tonnage. AFRA allows an assessment of a freight scale for various size tankers. AFRA can also be relevant to such matters as the calculation of demurrage for tankers.

What is worldscale index?

Worldscale is the market index system used for crude oil and refined product tanker chartering. The worldscale rate is a standardized estimate of the cost of moving a tanker on a given route. Charters are typically quoted and negotiated as a percent of this worldscale rate.

What is round voyage?

A charter for a “round voyage” may be a mixture of a. time charter and a voyage charter (similar to a trip charter). The Charterer may charter the ship from one delivery or loading place to a discharging port and back to the original place of delivery to the Charterer.

How does contract of affreightment work?

Contract of Affreightment is an agreement between a charterer and a shipowner, where the shipowner agrees to transport specific number of goods for the charterer at a specified period. Under this agreement, the charterer is obligated to pay the freight whether the goods are ready for shipment or not.

Why is it called Suezmax?

“Suezmax” is a naval architecture term for the largest ship measurements capable of transiting the Suez Canal in a laden condition, and is almost exclusively used in reference to tankers. The limiting factors are beam, draft, height (because of the Suez Canal Bridge), and length (even though the canal has no locks).

What type of tanker is LR1?

An LR1 tanker can carry between 345,000 barrels and 615,000 barrels of gasoline (14.5-25.8 million gallons) or between 310,000 barrels and 550,000 barrels of light sweet crude oil. A classification used to describe a large portion of the global tanker fleet is AFRAMAX.

What is a voyage charterparty?

In charter party. The voyage charter is the most common. Under this method a ship is chartered for a one-way voyage between specific ports with a specified cargo at a negotiated rate of freight.

What is the difference between charter party and contract of affreightment?

While it is possible to have a charter party of less than the entire ship, as a general rule a charter party deals with the full reach of a ship while a contract of affreightment deals with carriage of goods forming only part of the cargo and coming under a bill of lading.