Daily Return

Do not make the error, having done all the work, of  failing to answer the question.  You are asked to advise the shipowner of the most profitable route.  So tell him.  Or rather, tell the examiner. Some of you at this stage looking back at the several pages of calculations required to answer this question might feel a little apprehensive.  Don’t.  You must appreciate that these are paragraphs explaining how to do the estimate.  In an exam you are required to answer a question – not provide pages of explanatory notes. So let us try one other example to give you additional confidence.  Only this time we will concentrate on a timecharter calculation. With a time charter calculation, there remains the need to bring the vessel’s income back to a common factor – i.e. the Gross Daily Return – so that fair comparison can be made with a voyage charter alternative, as well as other time charter trips.  To achieve this, brokerages and commissions must be taken into account. Allowances have to be made where necessary for time and voyage expenses incurred from the start point of the exercise through to the commencement of the time charter, and again, from the completion of the time charter through to the end of the estimated voyage. Taking the above example, the starting point is clearly Toamasina.  That is where the ship will be open and from where she can proceed either to Mauritius to load sugar, or ballast to Durban to deliver on to time charter.  The sugar cargo finishes in London and, for a tweendecker such as this, the owner will doubtless try to fix outwards from the UK or the Continent.  The Mediterranean market is usually weaker for tweendeckers than is the Continent market. We are told our owner decides that, if fixing the time charter trip from Durban to Piraeus, he will probably be faced with an unprofitable ballast passage from Piraeus to the Continent which must be taken into account.