FREIGHT FIXING
Have we ever thought how shipping freights are being fixed? The shipping services are divided in two. One is Tramp shipping and another is Liner shipping. 1) TRAMP SHIPPING:- Dry bulk, Oil and refined product, Chemical and Gas carriers freights are fixed under Tramp shipping. Pricing is fully governed by law of supply and demand. Ships are chartered under different terms and conditions including single voyage or consecutive voyage charter, COA, time charter, trip charter or bare boat charter. Charter rates are quoted on a competitive basis through brokers in various exchanges through out the world. Major elements which influence the fixing of specific rate are:- Ship specification Trade and route General market condition Terms of charter party i.e. distribution of cost between owner and charterer. Urgency of charter Duration of charter A special situation applies to tanker chartering. It is according to world scale. 2) L...