Consider the following two options for the vessel MV KONTA which is available for new employment at Port of Ras Tanura. The vessel's details are as follows:

Vessel details:

Deadweight: 70,000 tonnes

Fresh water: 400 tonnes

Constants: 300 tonnes

Fuel consumption at sea: 35 tonnes per day (The vessel must carry 300 tonnes of fuel inaddition to that required for the voyage)

Fuel consumption in port: 3.5 tonnes per day

Daily running costs: $3,500

Option 1 is a voyage from Port of Ras Tanura to Aberdeen port under a voyage charterparty. Details of the proposed employment are as follows:

Voyage charterparty details:

Sea voyage duration: 35 days

Time in ports: 11 days (in total)

Loading port charges: $25,000

Discharging port charges : $20,000

Suez Canal charges: $50,000

Freight rate : $19.5 per tonne

Bunker cost: $425 per tonne

Total Commission: 4.5%

Option 2 is the hire of MV KONTA under a time charterparty at a daily hire rate of $9,100 for a period of 60 days. Delivery is at Port of Ras Tanura and redelivery at Aberdeen Port. Total Commission is 4.5%.

Which one is the better employment option for MV PANDA from the shipowner's perspective? Justify your choice with appropriate explanations and calculations.

Answer rating: 100% (QA)

Option 1 Voyage Charter Calculation of Earnings Cargo 70000 tonnes Freight Rate 195tonne Freight Ear... View the full answer