VLCC TCE VESSEL & ROUTE DESCRIPTIONS.

300,000 mt dwt, double hull. 155,000 scnt. 14.5 knots on 80 ballast mt IFO /100 mt laden IFO (380CST) In port: 2 days loading 20 mt per day 2 days discharging 85 mt per day 1.5 days waiting/anchor 10mt per day Routes: The published VLCC time-charter equivalent is an average of the rates derived from TD1 and TD3. TD1: 280000 mt Ras Tanura/LOOP laydays canceling 20/30 days in advance max age 20 years. Via: Laden - Cape of Good Hope, Ballast - Cape of Good Hope The calculation is based on current market practice of ballasting the vessel back via the Suez Canal and Suez Canal rebate to apply. Bunkers based on Singapore 380 CST. Weather margin 5%. 2.5% total commission. TD3: 260000 mt Ras Tanura/Chiba laydays canceling 30/40 days in advance max age 15 years. The calculation includes a weather margin of 5% and bunkers based on Singapore 380 CST. 2.5% total commission

VLCC TCE Calculation Process

TD1: The net Timecharter Equivalent is calculated as the income less the total expenses
and that result is then divided by the number of days of the voyage's total duration of employment.

Expenses
- Initially laden and ballast days are calculated. The laden days are derived by adding a weather factor (5%) to the laden miles (12,349) and dividing the result by the daily speed (14.5 knots per hour multiplied by 24 hours). The ballast days are calculated in the same manner, with the ballast miles (9,713) being used instead of the laden ones. - The next step is establishing the bunker costs. For the trip's IFO (Intermediate Fuel Oil) consumption while loading, the loading days (2 days) are multiplied by the daily IFO loading consumption (20 mt per day). For the trip's IFO laden consumption, the laden days (37.26) are multiplied by the daily IFO laden consumption (100 mt per day). For the trip's IFO ballast consumption, the ballast days (29.31) plus the days the vessel is transiting the canal (1 day) are multiplied by the daily IFO ballast consumption (80 mt per day). For the trip's IFO consumption while discharging, the discharging days (2 days) are multiplied by the daily IFO discharging consumption (85 mt per day). Finally for the trip's IFO consumption while waiting, the waiting days (1.5 days) are multiplied by the daily IFO waiting consumption (10 mt per day). Adding the results from the calculations described above generates the trip's total IFO consumption. This figure is then multiplied by the IFO market price per mt (based on Singapore 380 CST and supplied by Bunkerworld), which produces the total IFO cost for the trip. - The Suez Canal Charges are applicable when the vessel is ballasting and are determined by adding the Suez Canal Port Costs to the Suez Canal Dues (this figure is calculated using the scaled Suez Canal Net Tonnage factors that are provided by the Suez Canal Authority. A 20% discount and a 2% double hull reduction are included). As the latter is expressed in SDR 'Special Drawing Rights' it is divided by the $/SDR rate to be converted into dollars. Foreign exchange rates (including SDRs) are sourced from XE.com. - The trip's Total Expenses are calculated as the sum of the total IFO cost, the Suez Canal dues, the load port charges (Ras Tanura) and the discharge port charges (Loop). All port cost related information is provided by Cory Brothers Shipping.

Income
- The Gross Freight of the voyage is calculated by multiplying the cargo quantity (280,000 Mts) by the Worldscale flat rate and by the Baltic Exchange daily Worldscale route assessment for TD1, divided by 100 as market levels of freight are expressed as a percentage of the nominal freight rate. - Discounting the gross freight by the broker commission (2.5%) produces the Net Freight.

Duration
The total voyage days are the sum of loading (2), laden (37.26), ballast (29.31), canal (1), discharging (2), and waiting (1.5) days.

TD1 TCE
- Deducting the total expenses from the net freight produces the Net Income - Dividing the net income by the duration (73.07) gives us the Timecharter Equivalent rate for TD1.

TD3: The net Timecharter Equivalent is calculated as the income less the total expenses
and that result is then divided by the number of days of the voyage's total duration of employment.

Expenses
- Initially laden and ballast days are calculated. The laden days are derived by adding a weather factor (5%) to the laden miles (6,655) and dividing the result by the daily speed (14.5 knots per hour multiplied by 24 hours). The ballast days are calculated in the same manner, with the ballast miles (6,650) being used instead of the laden ones. - The next step is establishing the bunker costs. For the trip's IFO (Intermediate Fuel Oil) consumption while loading, the loading days (2 days) are multiplied by the daily IFO loading consumption (20 mt per day). For the trip's IFO laden consumption, the laden days (20.08) are multiplied by the daily IFO laden consumption (100 mt per day). For the trip's IFO (Intermediate Fuel Oil) ballast consumption, the ballast days (20.06) are multiplied by the daily IFO ballast consumption (80 mt per day). For the trip's IFO consumption while discharging, the discharging days (2 days) are multiplied by the daily IFO discharging consumption (85 mt per day). Finally for the trip's IFO consumption while waiting, the waiting days (1 day) are multiplied by the daily IFO waiting consumption (10 mt per day). Adding the results from the calculations described above generates the trip's total IFO consumption. This figure is then multiplied by the IFO market price per mt (based on Singapore 380 CST and supplied by Bunkerworld), which produces the total IFO cost for the trip. - The trip's Total Expenses are calculated as the sum of the total IFO cost, the load port charges (Ras Tanura) and the discharge port charges (Chiba This figure is divided by the USD/Yen rate as this port's charges are provided in Yen). Foreign exchange rates (including SDRs) are sourced from XE.com. All port cost related information is provided by Cory Brothers Shipping.

Income
- The Gross Freight of the voyage is calculated by multiplying the cargo quantity (260,000 Mts) by the Worldscale flat rate and by the Baltic daily Worldscale route assessment for TD3, divided by 100 as market levels of freight are expressed as a percentage of the nominal freight rate. - Discounting the gross freight by the broker commission (2.5%) produces the Net Freight.

Duration
The total voyage days are the sum of loading (2), laden (20.08), ballast (20.06), discharging (2), waiting (1) days.

TD3 TCE
- Deducting the total expenses from the net freight produces the Net Income - Dividing the net income by the total voyage days (45.14) gives us the Timecharter Equivalent rate for TD3.

VLCC TCE: Taking the average of the Timecharter Equivalent rates calculated for
TD1 & TD3 produces the VLCC Timecharter Equivalent. Bunker Prices used in this calculation are provided under licence by Bunkerworld. Exchange Rates used in this calculation are provided under licence by XE.com. All port cost related information is provided by Cory Brothers Shipping. To view the TCE port cost rates please click here.