How to Understand Charter Rates
If you're in a business that uses large-scale shipping, it's important that you understand charter rates.These rates describe how much it costs to book space on an oceangoing ship to transport your goods. They aren't complicated, but you should be aware of their specific set of rules and conventions before you start booking spots on ships.
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Instructions
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Understand spot rates, which are for a point now or in the near future, and include all vessel expenses. They are fixed for the voyage, and compensate the vessel owner both for the expense of shipping your goods and the expense of getting the ship back.
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Compare spot rates with time rates. Time rates are a daily rate, rather than a fixed rate. They include insurance, fuel and the general costs of running the boat. They don't include voyage prices, which are costs incurred during the voyage, such as crew housing and food.
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Take global currency fluctuations into account. Since chartering a ship is an international endeavor, a strong or weak dollar can dramatically affect your charter rate. Small changes in currency value are more visible in large amounts of money.
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