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TERMS
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DEFINITIONS
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ADR
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American Depository Receipt. The exchange system for trading of foreign shares in the USA.
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Aframax
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Originally a term coined for a crude oil tanker of exactly 79,999 long tons dwt being the upper limit of LR1 as defined by London Tanker Brokers Panel.
Now more usually referred to an oil tanker of above this size; our definition being 80,000-124,999 dwt
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API
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American Petroleum Institute. Produces statistics on the US petroleum industry. Also responsible for the origination of API gravity which is used in crude oil pricing and is calculated by the formula (141.5/specific Gravity at 60 degF) minus 131.5
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ARA
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Amsterdam-Rotterdam-Antwerp used in charterparty terms as a defined load or discharge port range.
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Ballast
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Generally used to mean a vessel sailing empty of cargo. Strictly speaking it is the carriage of water (usually in dedicated tanks) or sometimes solids when the vessel is free of cargo in order to increase vessel stability for safe passage.
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Ballast ratio
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Time at sea without cargo as a percentage of total time.
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Bareboat
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Charter where the charterer hires a vessel for a period of time free (or bare) of crew. The management and operation of the vessel are therefore entirely the responsibility of the charterer. Usually bareboat charters are for periods of several years (some
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Barrel
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The primary unit by which crude oil is measured and sold. The petroleum barrel is 42 US Gallons (158.99 litres)
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BOXi Index
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Our container charter rate index (BOXi) is distilled from a basket of the rates for 2 vessel types which we deem most representative of the charter market. Each ship type is weighted according to its commercial importance and prevalence in the market.
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Broker
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Company or person acting as an intermediary or agent in the negotiation of contracts for the chartering, building, sale or purchase of vessels.
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Bulk Cargo
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Cargo of a homogeneous nature that is free of packaging. May be liquid (e.g. oil) or dry (e.g. iron ore).
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Bulk Carrier or Bulker
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Strictly speaking a vessel designed to carry homogeneous cargo whether in liquid or solid form though more usually it is used to mean a dry bulk vessel. Bulkers differ from general cargo vessels in so far as they have single rather than multiple, removabl
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Bunkers
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Fuel used for the propulsion or power generation of a vessel. Usually petroleum oil based and stored in purpose built tanks. Name derived from early days of coal fired steam turbines when the coal was stored in coal bunkers aboard ship and at the port.
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Bunkers
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The ship’s fuel.
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Buoy loader
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Tanker specially equipped for loading at sea via buoys.
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Cabotage
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Transport of goods between two ports or places located in the same country, often restricted to domestic carriers.
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CAP
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Condition Assesment Program.
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Capesize
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A dry bulk carrier of 85,000 dwt or above.
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Charter Party
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A formalised contract under which vessels are chartered.
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Charterer
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Being the party that has agreed to charter (or hire) a vessel for financial consideration. This is often the owner of the cargo.
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Charterparty
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A formalised contract under which vessels are chartered.
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CIF
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Cost, insurance and freight. Delivery of goods is the seller’s responsibility to the port of discharge. The freight is paid for by the supplier of goods.
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Clean Cargo
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Clean or White Oils are highly refined petroleum products such as aviation sprits, gasolines, kerosines and lube oils. Such products tend to be light (Specific Gravity usually 0.66-0.89) and non-persistent in water. Most but not all have hi
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Clean oil
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Refined oil products such as naphtha.
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COA
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Contract of Affreightment. An agreement to transport a defined amount of cargo at an agreed freight rate, with the shipowner choosing the ship.
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COFR
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Certificate of Financial Responsibility. Certificate required by the US Coast Guard for tonnage transporting oil products in the US economic zone (due to OPA90), to confirm the owner's financial responsibility up to a specified amount for pollution caused in US waters.
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Combined Carrier
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A vessel designed to carry either liquid or dry bulk cargoes. There are two principal types OBO (ore/bulk/oil) and O/O (ore/oil). OBOs are derived from dry bulk carriers with the added features of gas tight hatch seals, cargo lines and pumps and ofte
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Crude oil
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Unrefined oil.
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Daily operating costs
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The costs of a vessel’s technical operation, crewing, insurance and maintenance, but excluding costs of financing.
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Deadweight (dwt)
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The maximum that may be carried by a vessel in tonnes by way of cargo, stores, fresh water, fuel etc. to take vessel up to its appropriate marks. Usually the dwt quoted is maximum summer dwt in sea water and the full scantling rather than the design dw
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Demurrage
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Penalty imposed upon the charterer for voyages that exceed loading/discharging time allowed in accordance with the Charterparty.
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Dirty oil
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Less refined of the oil products such as fuel oil.
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Dispatch
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Remuneration payable by shipowner to charterer, shipper or receiver for loading/discharging in less than the time allowed according to the charter-party.
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Double Bottom
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A space used for ballast water - and in older ships for bunkers - that lies directly between the bottom of a cargo tanks or holds and the outer hull for the entire length and breadth of the cargo tanks or holds.
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Double Hull (Skin)
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A double hulled vessel has both a double bottom and a double side.
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Double Side
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A space used for ballast water that lies between the cargo tanks or holds and the outer hull for the entire length and height of the cargo tanks or holds.
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Dry (market)
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Generic term for the bulk market.
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Dry cargo carrier
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A ship carrying general cargoes or sometimes bulk cargo.
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Dry Dock
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A dock space where a vessel may be constructed, repaired, maintained or inspected out of water.
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Dwt
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Deadweight ton. A measure expressed in metric tons (1,000 kg) or long tons (1,016 kg) of a ship’s carrying capacity, including bunker oil, fresh water, crew and provisions. This is the most important commercial measure of the capacity.
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FFA
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A Forward Freight Agreement is a cash contract for differences requiring no physical delivery based on freight rates on standardised trade routes.
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Flag
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Country where vessel is officially registered. Each flag state has various rules and regulations with respect to the vessels registered with it. It is the flag state that is responsible for investigations with respect marine casualties.
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Fleet
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Collective term for vessels falling under a common category e.g flag, owner, type.
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FOB
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Free On Board. Cost of the delivery of goods is the seller’s responsibility only up to the port of loading. The freight is paid for by the buyer of the goods.
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FOB (estimate)
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Forward Order Book represents estimated commissions collectable over the duration of the contract as principal payments fall due. The forward order book is not discounted.
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FOSVA
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Forward Ship Value Agreement. An FFA based product designed specifically for the sale and purchase market.
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Freight (rate)
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Usually the payment made for the carriage of goods by sea e.g. $ per tonne. Sometimes used to mean payments of hire for a vessel and rarely a term meaning cargo.
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Handysize/Handymax
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Bulk ship size ranges of ships defined by Clarksons as 10-40,000 dwt and 40-60,000 dwt.
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IMO
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International Maritime Organisation: a United Nations agency devoted to shipping.
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ISM code
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International Safety Management code for the safe operation of ships and for pollution prevention as adopted by the IMO.
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Knot
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A measure of the speed of the vessel. 1 knot = 1 nautical mile per hour, that is 1,85 km/h.
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LNG
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Liquified Natural Gas.
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LPG
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Liquified Petroleum Gas.
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Net revenue
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Gross freight income less voyage costs (bunker costs, port duties etc.).
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OBO
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Ore/Bulk/Oil carrier. See Combined Carrier.
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OBO
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Oil/Bulk/Ore carrier (see Combination carrier).
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Oil tanker
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Tanker carrying crude oil or refined oil products.
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OPA-90
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The US Oil Pollution Act of 1990. Federal law imposing regulations on shipowners trading in US waters.
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Panamax
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Term used to describe tanker vessel between 50000 - 79999 dwt (largest vessel size able to fit through Panama Canal
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Parcel tanker
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Tanker equipped to carry several types of cargo simultaneously.
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Product tanker
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Tanker that carries refined oil products.
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Reefer
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Refrigerated Cargo Vessel i.e. a vessel that has cargo holds that are refrigerated. Typically such vessels carry fruit, meat or fish, have multiple or tween decks and are adapted for palletised cargo. Reefers tend to be faster than the average cargo ve
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Ro-Ro
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An abbreviation for roll-on roll-off, describing vessels where vehicles drive onto and off the vessels.
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Ship Management
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The technical administration of a ship, including services like technical operation, maintenance, repair, crewing and insurance.
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Shipbroker
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A person/company who on behalf of shipowner/shipper negotiates a deal for the transportation of cargo at an agreed price. Shipbrokers are also active when shipping companies negotiate the purchasing and selling of ships, both second-hand tonnage and newbuilding contracts.
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Shuttle tanker
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Tanker carrying oil from offshore fields to terminals.
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Spot market
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Short term contracts for voyage, trip or short term time charters, normally no longer than three months in duration.
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Suezmax
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A general term applying to the largest size of tanker that may transit the Suez Canal fully laden. Also called a million barrel vessel. Our definition being a tanker of between 125,000 and 199,999 dwt (inclusive).
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TEU
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Twenty Foot Equivalent Units, being the measurement of the container capacity of a vessel in terms of standard ISO Container size of 20' x 8' x 8'6".
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Time charter (t/c)
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An arrangement whereby a shipowner places a crewed ship at a charterer’s disposal for a certain period. Freight is customarily paid periodically in advance. The charterer also pays for bunker, port and canal charges.
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Time Charter Equivalent (TCE)
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Gross freight income less voyage costs (bunker, port and canal charges), usually expressed in US$ per day.
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Ton/Tonne
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Imperial/Metric ton of 2,240 lbs/1,000 kilos (2,204 lbs).
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ULCC
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Ultra Large Crude Carrier. Tanker of 320,000+ dwt.
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VLCC
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Very Large Crude Carrier. Our definition being a vessel of 200,000 dwt or above.
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Voyage charter
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The transportation of cargo from port(s) of loading to port(s) of discharge. Payment is normally per ton(ne) of cargo, and the shipowner pays for bunker, port and canal charges.
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Voyage costs
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Costs directly related to a specific voyage (eg. bunker, port and canal charges).
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Wet (market)
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Generic term for the tanker market.
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Worldscale
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An international tanker rate schedule produced by the Worldscale Association that shows the costs (not freight) for a standard tanker on different voyages the main variables being distance, time, fuel consumed, the cost of fuel and port
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