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.
Savannah – Houston Sail 1,354 nautical miles 5 Moji Sail 9,669 nautical miles
31 Weather Factor 5% 2 Houston Loading 3 Moji Discharge 3 44 days
|There are many free sources of distance tables available on the Internet. Here are just a few:
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
|Here are a couple of tools to familiarize you with the above costs:
Panama canal costs:
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
LOA/BEAM: 145.50m / 21m
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
– FREE USE OF SHIP’S GEAR
– ALL CHRTS SUBS TO BE LIFTED 24HRS AFTER
FIXING MAIN TERM
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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