Voyage Estimating – A Simplified Example

June 16, 2017

This article attempts to provide you with the basics of voyage estimation based on a full and complete cargo (as opposed to a part 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:

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

Of course, inquiries come in many different degrees of detail.  The above is a very simply inquiry.  Inquiries are always riddled with acronyms and abbreviations and the above inquiry is no different.  The inquiry is for 10,000mt of fertilizer but is subject to 5% more or less (MOL) in Charterer’s option (CHOPT).  That means, the cargo could be as much as 10,500mt and as little as 9,500mt.

The inquiry further reads “1sbsp” which means 1 safe berth 1 safe port.  It is the Charterer’s obligation to nominate a safe berth and safe port.  The definition of ‘safe berth’ and ‘safe port’ goes far beyond the text of this article, however, if you would like to read more, here is an article:

Article:  Safe Berth and Safe Port Warranties – Time and Voyage Charterers, Steamship Mutual, June 1999
Link: https://www.steamshipmutual.com/publications/Articles/Articles/Safe_Port.asp.

While the term ‘laycan’ is not stated, it is implied that Feb 1 – 10, 2009 may be a workable laycan.  Laycan is short for ‘laydays’ and ‘cancelling’ which are normally two separate dates (eg. Laydays Feb 1 and cancelling Feb 10).  In general, a Notice of Readiness must be tendered by Owners within the agreed laycan.  The Charterer is not obliged to load any earlier than the layday agreed and thus the vessel would have to wait if it arrived earlier than Feb 1, in this case.  Furthermore, the Charterer could cancel the charter if the vessel arrived after the ‘cancelling’ date, Feb 10, in this case.  For more about laycans, here is an amalgamation of court cases that when read, gives you a good understanding of what a laycan represents:

Article:  Laycan, Nov 28, 2015
Link:  http://caselawquotes.net/L/Laycan.html

FIOST means free in and free out stowed and trimmed.  The costs are from the point of view of the Owner, meaning, the loading costs and discharge costs are free to the Owner.  Furthermore, the cost of stowing and trimming the cargo are also for the cost of the Charterer.

In regards the how fast the cargo can be loaded and discharge and what time is to could as laytime, the Charterers have specified “4,000mt wwd shinc” which is short for 4,000 mt per ‘weather working day (wwd)’ and ‘Sundays and holidays are included (shinc)’.  Again, how weather working days and Sundays and holidays apply to laytime are beyond the confounds of this article, however, to read more, one may consult “Voyage Charter Party Laytime Interpretation Rules

Link:  https://www.fonasba.com/wp-content/uploads/2013/09/LAYTIME-DEFINITIONS-UPDATE-2013-RULES-and-NOTES.pdf

Lastly, the Charterer has specified that there shall be no Address Commission nor Brokerage Commission.

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)

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