Operative strategy in tanker (dirty) shipping

Abstract

Tanker (dirty) operational areas are identified with the help of itineraries and their profitability is estimated with time charter equivalent (TCE, $/day). The level is heavily influenced by the way waiting between cargo cycles is handled. Four alternatives are tried, planned (‘optimal’), simulated and two observed ones, with no or all-inclusive waiting. The choice of alternative is unlikely to upset area ranking seriously. Observed itineraries without waiting are selected. Small vessel size leads to fragmented markets and much variation in TCE. Endemic tonnage oversupply in the Far East depresses TCE in the Panamax, Aframax and Suezmax (PAS) segments. The barrier effect of canals is visible. The Worldscale system pays for port time which raises the paydays/ballastdays ratio and makes itineraries consisting of short cargo cycles attractive. Worldwide itineraries give mediocre TCEs.

Acknowledgements

Acknowledgement is due to Brendan Martin at E.A. Gibson Shipbrokers, Robert Porter at Worldscale Association (London) and Wally Mandryk at Lloyd's Marine Intelligence Unit who sponsored the project in their respective organizations and advised during its realization.