Imp Operation Details

1. What is the "cube rule" in international maritime transport? How does it work and what are important limitations?
2. An owner accepted a freight rate of US$ 10/t for a parcel of 100,000t.

The round voyage back to where the owner started is 8,000 nm. The ship has a design-consumption of 45 tons per day at a speed of 14 knots.

A ton of bunker fuel currently costs US$ 400 per ton. The owner expects to receive the same freight rate for the same cargo size, once the ship has completed the voyage.

Compute if the ship should travel at 14, 12 or 10 knots in order to maximise the profit. Ignore sea-margins or cargo handling times.

Briefly explain the concept behind the methodology and your result.

1. Name the two major cost categories, which the owner of a vessel has to pay when the vessel is employed on a time-charter contract.
2. Related to above: Explain why it is not reasonable/possible that the ship-owner should be paying the third major cost category as well while the ship is employed on a time-charter contract.
3. There is a link between the development of time-charter rates and freight rates.
   1. Which rate is driving the other?
   2. In a normal market environment (= "not during the trough stage of a shipping cycle"), the earnings on the spot market are presumed to be higher than the earnings associated with time-charter contracts. Briefly explain the reasons.
4. Explain the concept of computing voyage earnings. Why is the methodology so important for the shipping industry?
5. Solve the TCE/Voyage Earnings exercises uploaded to the moodle/ilias-system.
6. Explain the differences between