ABSTRACT
Calculation of the profitability of a prospective voyage of a ship using estimated figures. In the case of a tramp shipowner, the estimate is used to compare two or more voyages in order to determine which is the most profitable. Similarly, a time charterer would compare two or more ships so as to charter the one which is least costly overall.The content of an estimate varies according to the type and terms of the charter and whether the calculation is being made by a shipowner or charterer. For an owner, the principal costs are the running cost of the ship (or hire money for a time charterer), bunker costs, port charges and canal dues together with ship’s agency fees and any cargo handling costs; the revenue is the daily hire, in the case of a time charter, or the freight, less any commission in the case of a voyage charter.
