Overview

This publication describes the Worldscale system, its origins and its background. It is a perfect introduction to Worldscale for those who are unfamiliar with the system. This edition covers a multitude of points from commissions to crude oil washing, from delays to deviation, departure from standard terms, and a comprehensive treatment of the issues, with invaluable comments for day-to-day chartering practice.

Worldscale is an essential tool in the tanker market, but it needs to be thoroughly understood in order for the user to fully benefit from it. INTERTANKO provided a useful and practical background to this freight scale system when it published "New Worldscale - A New Tanker Chartering Tool" in 1988. This quickly became the standard work on Worldscale and, since Worldscale is constantly evolving, this third edition has now been written to reflect the latest changes to the Worldscale system.

For those who are unfamiliar with Worldscale this edition describes the system, its origins and its background. For readers more familiar with the basics, we cover a multitude of points from commissions to crude oil washings, from delays to deviation, departure from standard terms, and many other details. The intention is also to point out several aspects of tanker chartering that Worldscale does not solve.

Thus we hope that this booklet will be a useful reminder for many aspects of voyage chartering. While it will provide newcomers to the tanker industry with useful introduction to the subject, we hope that colleagues who have been in the business for many years will also benefit from the comprehensive treatment of the issues, finding points that they did not know about and comments that will be valuable in their day-to-day chartering practice.

Content

1. WORLDSCALE IN BRIEF

2. WHAT IS A FREIGHT SCALE?

2.1 Worldscale - a Facilitator of Competition

2.2 Worldscale - the Basic Function

2.3 Worldscale - Flat Rate Calculation

2.4 Worldscale - Distortions

2.5 Worldscale - Voyage and Market Comparisons

2.6 Worldscale - the Dilemma

3 WORLDSCALE PARAMETERS

3.1 Standard Vessel

3.2 Fixed Daily Hire Element

3.3 Laytime

3.4 Port Time

3.5 Speed

3.6 Bunker Price

3.6.1 Bunker Clause

3.6.2 Non-propulsion Bunkers

3.7 Port Costs

3.8 Voyage Distances

3.9 Exchange Rates

3.10 Trans-Shipment Areas

3.11 Revision Policy

3.12 Segregated Ballast Tanks (SBT)

4 VARIOUS OTHER ASPECTS

4.1 Roueting

4.2 Definition of Port Costs

4.3 Port Charges for Charterers' Account

4.4 Differentials

4.4.1 Variable Differentials

4.4.2 Fixed Differentials

5 COSTS

5.1 Retroactive Port Charges

5.2 Port Charges not yet reflected in Worldscale Rates

5.3 Time-Based Port Charges

5.4 Straits and Canals

5.5 Certificates of Financial Responsibility (USA)

5.6 Security Charges in Ports - ISPS Costs

5.7 Seasonally Incurred Costs

5.8 Heating of Cargo

5.9 Shifting Costs

5.10 Slop Disposal, Ballast reception and Ballast Exchange Costs

6 TAXES

7 BROKERS' COMMISSION

8 CARGO QUANTITY

8.1 Definition 33

8.2 Part Cargo in Rotterdam

8.3 Load Line 33

9 INERT GAS AND CRUDE OIL WASHING

10 SHORT VOYAGES

11 MULTIPLE VOYAGES

12 ROTATION OF PORTS

13 DELAYS FOLLOWING COMPLETION OF LOADING

14 RELOADING, BACKLOADING, CO-MINGLING OR BLENDING

15 DEVIATION

16 PORT ARRIVAL AND DEPARTURE TIME

17 SAME PORT LOADING OR DISCHARGING

18 WAITING TIME

19 CURRENCY

20 INSURANCE

21 DEMURRAGE

22 LUMP SUM

23 MINIMUM RATES

24 R.O.B, O.B.Q AND OVERAGE

25 INTERPRETATION

26 DEPARTURE FROM STANDARD TERMS

27 SUPPLEMENTARY MESSAGES

28 EFFECTIVE DATE

29 PORT RANGES

30 WORLDSCALE IN ELECTRONIC FORM

31 ARABIAN GULF, BLACK SEA AND LAKE MARACAIBO ADDITIONS

32 THE CONSTITUTION OF THE WORLDSCALE ASSOCIATIONS

33 INTERTANKO'S WORLDSCALE COMMITTEE

34 THE FUTURE

APPENDIX I - PREVIOUS SCALES

APPENDIX II - EXTRACTS FROM INTERTANKO'S 1988 PUBLICATION

APPENDIX III - PREAMBLE (EXTRACTS) - 2010 WORLDSCALE SCHEDULE

INDEX

Details

Title: INTERTANKO Worldscale - A Tanker Chartering Tool
Edition: Third
Number of Pages: 84
Product Code: WS1219K
Published Date: July 2001
Binding Format: Paperback
Book Height: 295 mm
Book Width: 210 mm
Book Spine: 10 mm
Weight: 0.37 kg
Author: Intertanko