Voyage Estimating – A Simplified Example

This article attempts to provide you with the basics of voyage estimation based on a full and complete cargo loading from one port and discharging at one port.  All aspects of the voyage calculation and supplementary information have all been simplified.

You are an Owner. You have received an inquiry from a potential Charterer from Houston, TX, USA to Moji, Japan for the carriage of fertilizer. The inquiry reads as follows:

+++
Charterers invite Owner's best for following:

12,000MT FERTILIZER,
TTL 5PCT MOLCHOPT
1SB1SP HOUSTON, USA/ 1SB1SP MOJI,JAPAN
FEB 1~10,2009
FIOST
LOAD/DISCHARGE 4,000MT PWWD SHINC
NO ADD/NO COMM
+++

You search your internal position lists and find the closest suitable open vessel is expected as follows:

N/OPEN: MIAMI, FL, USA ON JAN 31ST, 2009
NAME: M/V RICHVESSEL
DWT: 17,324 mt
YR BUILT: 1987
FLAG: Philippines
CLASS: LR
SPEED: 13
BUNKER: F.O. 30 MT PD
D.O. (AT SEA) 2MT PD
D.O. (AT PORT) 4MT PD
LOA/BEAM: 145.50m / 21m
HOLDS/HATCHES: 5/5
GEAR: 5 SETS X 25MT (SINGLE) HORIZONTAL SLEWING
CRANES GEMINI = 1 SET = 2 X 25MT = 50MT (USING
#2 & 3 TWIN CRANES)

Now, let’s get into the voyage calculation. I normally like to start from the time component. Total time, in this situation, is the (1) ballast leg, (2) loading time (3) transit time, (4) discharging time and (5) weather.

Rotation
Description
Days
 Savannah  –
 Houston Sail 1,354 nautical miles  5
 Moji Sail 9,669 nautical miles
via Panama
 31
 Weather Factor 5%  2
 Houston Loading  3
 Moji Discharge  3
 44 days

 

TIPS
There are many free sources of distance tables available on the Internet. Here are just a few:
http://www.portworld.com/map/
http://e-ships.net/dist.htm
http://www.netpas.net/products/detail/nd

The next step is to gather all the cost components up. Many prices you will already have at hand but some prices you may need to ask a local port agent. Our costs are:

Port costs @ Houston USD 25,000
Port costs @ Moji USD 28,000
Canal fees @ Panama USD 40,756
Other expenses: USD 3,000
Daily hire rate of vessel:
USD 12,000 pdpr x 44 days
USD 528,000
Bunker Costs @ Sea
IFO380 x 30mt/day x USD 280/mt x 38 days
DO x 2mt/day x USD 487/mt x 38 days
USD 356,212
Bunker Costs @ Port
DO x 4mt/day x USD 487/mt x 6 days
USD 11,688
USD 992,656

 

TIPS
Here are a couple of tools to familiarize you with the above costs:

Panama canal costs:
http://www.therozogroup.com.pa/calculate.html

Bunker prices
http://www.bunkerworld.com/

Given the total costs of USD 992,656, the breakeven freight rate would be USD 82.72/mt. I will not go into how much we should expect from our investments – I have decided to make my initial firm offer @ USD 100 pmt.

You subsequently draft your firm offer for the voyage business as follows:

OWNER’S ARE PLEASED TO OFFER FIRM AS FOLLOWS:

REPLY BY: TODAY, JAN 27TH BY 1700HRS AT HOUSTON, TX
FOR ACCOUNT OF: FCC (PLEASE ADVISE)
NAME OF SHIP: M/V RICHVESSEL
DWT: 17,324 mt
YR BUILT: 1987
FLAG: Philippines
CLASS: LR
LOA/BEAM: 145.50m / 21m
HOLDS/HATCHES: 5/5
GEAR: 5 SETS X 25MT (SINGLE) HORIZONTAL
SLEWING CRANES GEMINI = 1 SET = 2 X 25MT
= 50MT (USING #2 & 3 TWIN CRANES)
ALL DETAILS ABOUT WOG
POSITION & EST’ READINESS OF VESSEL: SAVANNAH ETS JAN 31ST
HOUSTON ETA FEB 5TH
AGW UCE WP WOG
CARGO DESCRIPTION & QUANTITY: 12,000MT FERTILIZER, 5PCT MOLOO
LOAD PORT(S)/BERTHS: 1SBSP, HOUSTON, TX
DISCHARGE PORT(S)/BERTHS: 1SBSP, MOJI, JAPAN
LAYDAYS/CANCELLING: FEB 1ST ・10TH, 2009
LOADING RATE: 4,000MT PWWD SHINC
DISCHARGING RATE: 4,000MT PWWD SHINC
FREIGHT RATE: USD 100 PMT PAYABLE
AT HOUSTON, TX WITHIN
3 DAYS AFTER DEPARTURE AND PRIOR
RELEASE OF B/LS, MARKED FREIGHT
PAYABLE AS PER C.P.
 DEMURRAGE RATE: USD 17,000 PDPR
 LOADING/DISCHARGING COSTS: FIOST
 ADDRESS COMMISSION: NONE INCL.
 BROKERAGE: NONE INCL.
 CHARTERPARTY FORM: GENCON94
SUBJECTS: – SUBJECT DETAILS BASED ON CHARTERER’S
EXECUTED CP TO BE MUTUALLY REVIEWED
AND AGREED
– FREE USE OF SHIP’S GEAR
– ALL CHRTS SUBS TO BE LIFTED 24HRS AFTER
FIXING MAIN TERM

END OFFER

And so you have made your first firm offer and await charterer’s firm counter, if you’re lucky!

The above has looked at a very simplified voyage estimation.  This calculation just begins to touch the surface.  Plod along and you will find that there are every more details you can enter to your voyage calculation.

There are some great tools our there that will help you automate your calculations.  One that I like is called “NETPAS Estimator” found here:  http://www.netpas.net/products/detail/ne

A free trial of the software exists.  Here are a few screenshots:

 



 

 

 

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