The cost for diesel is thus $24,765 which together with fuel oil costs gives a total bunker bill of $191,125. As regards port costs, Newcastle disbursement, we are told, amount to US$ 50,000 and Rotterdam to $60,000, with Cape Town amounting to $2,500. Thus, voyage expenses can be estimated to amount to US$ 303,625. Income can be calculated by taking our anticipated cargo of 63,050 mt and applying the freight rate of US$ 16.00 per mt; thus a nett anticipated freight rate of US$ 958,360, after the application of 5% commission and brokerage. The result can be ascertained by deducting $303,625 expenses from nett income of $958,360 and by dividing the result by the overall estimated voyage duration of 63.5 days – thus: – $10,310 daily. We are told that the running costs of the ‘CURLEW’ amount to $4,500 daily, so nett income will amount to $5,810 daily. To calculate the value of each 10 cents on the freight rate – a useful aid during negotiations – it is necessary to adjust the freight rate by 10 cents – say to $15.90 or to $16.10 – and run the figures through to either the gross or nett daily stage for comparison purposes with existing figures. The difference can be entered in the appropriate box. Finally, the equivalent timecharter rate can be expressed in terms of daily hire by taking the gross daily of $10,310 and applying to it a factor representing the likely commission/brokerage payable. Thus, basis a total of 5%: $10,310 / 0.95 = $10,852 gross timecharter daily hire. Assume port charges at each bunkering port are $2,500, except Suez, where assume no extra charges in addition to transit costs of the Canal. Allow one day for transitting the Suez Canal, and an extra half day if bunkering at Suez, and half a day if bunkering elsewhere. Finally, if you find that this second alternative shows less daily return than the alternative one, remember that sometimes the Suez Canal Authorities can be persuaded to lower their canal tolls in order to attract business.