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How is charter equivalent time calculated?

Time charter equivalent is calculated by taking voyage revenues, subtracting voyage expense, including canal, bunker and port costs, and then dividing the total by the round-trip voyage duration in days. It gives shipping companies a tool to measure period-to-period changes.

What is the difference between voyage charter and time charter?

A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. A time charter is the hiring of a vessel for a specific period of time. The owner still manages the vessel, but the charterer selects the ports and directs the vessel where to go.

What is the difference between bare boat charter and time charter?

A bare boat charter is also referred to as a demise charter. Under this the owner of the ship gives its possession to a charterer who hires his own crew and master. A time charter refers to a ship that has been hired by a person for carrying out a trade for a specific period of time.

What is voyage charter?

Definition of voyage charter party : a charter party whereby the owner of a ship agrees to transport a full shipload of cargo owned or furnished by another person with the ship's crew and master in control of the navigation.

What is a bare boat charter agreement?

A bare boat charter or demise charter is an arrangement for the chartering or hiring of a ship or boat, whereby no crew or provisions are included as part of the agreement. Instead, the people who rent the vessel from the owner are responsible for taking care of such things.

What is voyage cost?

Voyage costs are the costs incurred to earn the freight or other voyage revenue. They vary with the length of the voyage and the number of port calls.

What is voyage in shipping terms?

Voyage Definition: In maritime law, the time of a ship's transit from one place to another. If a ship of war or other ship is sent on a particular expedition, her voyage would generally include her return home, as a voyage of convoy or of exploration or discovery.

How is a voyage period measured?