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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 time charter and voyage 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.

How is the time charter different from bare boat 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 a bare boat yacht charter?

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 a time charter agreement?

A time charter — is a contract for the hire of a named vessel for a specified period of time. i) The charterers agree to hire from the shipowner a named vessel, of specified technical characteristics, for an agreed period of time, for the charterer's purposes subject to agreed restrictions.

What is non demise charter?

A non-demise charter arises when the shipowner provides the vessel and its crew, whilst the charterer merely supplies the cargo. It may be a voyage charter for a particular voyage, in which the shipowner agrees to carry cargo between specified ports for a prearranged freight.

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 meant by voyage charter?

A voyage charter is the hiring of a vessel and crew for a voyage between a load port and a discharge port. The charterer pays the vessel owner on a per-ton or lump-sum basis. The owner pays the port costs (excluding steering), fuel costs and crew costs. The payment for the use of the vessel is known as freight.

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