How world scale trade is determined?
Worldscale is based on an average vessel with average costs earning an average rate. It works on the basis that, using the realistic costs of operating an imaginary standard tanker of “average” size on an “average” 15,000- mile round voyage, the break-even freight rate for that ship on that route can be calculated.
What is the World Scale Index?
Worldscale is the market index system used for crude oil and refined product tanker chartering. The worldscale rate is a standardized estimate of the cost of moving a tanker on a given route. Charters are typically quoted and negotiated as a percent of this worldscale rate.
What is world scale flat rate?
This method is known as “Points of Scale” and thus Worldscale 100 means 100 points of 100 per cent of the published rate or, in other words, the published rate itself, sometimes referred to as Worldscale flat, while Worldscale 250 means 250 points or 250 per cent of the published rate and Worldscale 30 means 30 points …
What does WS mean in shipping?
Worldscale
Worldscale (WS) An international index of freight for tankers. Worldscale is a schedule of freight rates for a standard ship in US dollars per tonne of oil for an array of oil routes.
What is economies of scale in shipping?
Economies of scale are defined as having a cost advantage per-unit when the level of output is increased. This cost advantage occurs because of the inverse relationship between per-unit fixed cost and the quantity produced. In other words, the greater the quantity of output produced, the lower the per-unit fixed cost.
What is disbursement account in shipping?
Disbursements are all expenses that the agents made for the vessel in a port. Think of port duties, loading and unloading costs, tugs, provisions, etc.
What is round voyage?
A charter for a “round voyage” may be a mixture of a. time charter and a voyage charter (similar to a trip charter). The Charterer may charter the ship from one delivery or loading place to a discharging port and back to the original place of delivery to the Charterer.
What is TCE in shipping?
Platts Time Charter Equivalent (TCE) assessments reflect the net daily revenue of vessels operating on key dry bulk routes across the globe. They are available in the Platts pricing database and in the Dry Freight Wire.
What is laden and ballast?
(of a ship) not carrying any cargo (= goods), but with containers filled with sea water to add weight: vessels arriving at the port laden or in ballast.
What is container principle in economies of scale?
Container Principle More efficient transport and packaging with bigger containers. If the surface area of a container increases by 100%, the volume it can carry will increase by 200%. Therefore, transporting larger quantities leads to lower average costs.
What is PDA in port?
PDA (Proforma Disbursement Account)
What is a Worldscale freight rate?
The freight rate actually negotiated in a fixture, using the Worldscale Flat rate as a basis for negotiation, is called the “Worldscale Freight Rate”. This negotiated rate will depend on the strength of the market and will be quoted in market reports in Worldscale points in the way outlined above. Pumping Clause
What is world scale for tankers?
World Scale is the “World Tanker Nominal Freight Scale” and is a schedule of freight rates applying to tankers carrying Oil in bulk. 2. Nominal means that the freight rates which world scale provides are intended solely as a standard of reference. 3. World Scale is available on a yearly subscription basis.
What is the tanker nominal freight scale?
1. World Scale is the “World Tanker Nominal Freight Scale” and is a schedule of freight rates applying to tankers carrying Oil in bulk. 2. Nominal means that the freight rates which world scale provides are intended solely as a standard of reference.
What is world scale system?
World Scale is available on a yearly subscription basis. It is the joint endeavor of two non-profit making organizations known as World Scale Associations London & World Scale Associations NYK. 4. The principal advantage of using World Scale system is that it can greatly simplify regulations of tanker charters.