How do you calculate time charter hire with off-hire?
Time charter hire is the daily hire rate multiplied by the days the vessel is on hire, so off-hire days are excluded. Off-hire periods should be recorded to the hour, and disputed periods should be kept out of the actual off-hire days. Confirm with your contract whether hire is deducted automatically, and how fuel is treated during off-hire.
How is an offshore day rate calculated with standby and mobilisation fees?
Billable hours are charged at the day rate, prorated by the hour (hours divided by 24), or rounded up to the started half day or full day. Standby hours are charged at the standby day rate or at the full rate. The mobilisation and demobilisation fee is a lump sum added once per contract. Example: 30 billable hours at 14,500 per day, prorated by the hour, gives 18,125.00.
What is time charter equivalent earnings (TCE)?
TCE is the average daily earning of a vessel after voyage costs. It equals net revenue minus voyage costs (fuel, port, agency, canal and other), divided by total elapsed days, including port and offshore days. Operating costs such as crew and maintenance are excluded. Illustrative example: net revenue 712,500 minus voyage costs 219,600 over 16.5 days gives a TCE of 29,872.73 per day.
What is the difference between a voyage charter and a time charter?
A voyage charter pays the owner freight to move a specific cargo between ports, and the owner pays fuel and port costs. A time charter pays the owner hire per day for a period, and the charterer pays fuel and port costs. In Artific's offshore chartering software, voyage charter estimates put bunkers and port costs on the owner account by default, and time charter estimates put them on the charterer account.
How do you calculate a cargo relet margin?
Cargo relet margin is relet revenue minus the tonnage cost paid for the head charter and minus voyage costs. The margin percentage is that profit divided by gross relet revenue. Tonnage cost is excluded from relet TCE, so the TCE stays comparable with the daily hire paid for the tonnage.
How do you compare estimated and actual voyage profit?
Approve the estimate, convert it to a voyage, then record actual days, fuel, port and other costs, and revenue on the voyage. The voyage P&L and estimated vs actual report show the variance on each line against the approved estimate.
What to ask a vendor before you buy
- Estimate types: Does it cover voyage, time charter, offshore day-rate and cargo relet?
- Off-hire: Is hire deducted automatically, or only recorded? Get the answer in writing.
- Laytime: Which charter party terms are supported, such as SHEX or reversible laytime?
- Fuel recharge: Can fuel used on offshore contracts be recharged to the client?
Offshore and Time Charter Management Software
Artific's offshore chartering software covers enquiries, estimates, fixtures, contracts, voyages, off-hire, port disbursement accounts, bunkers and voyage P&L. Read the full feature list and the items not yet built on the product page.
View Chartering Software Request a Demo