Expenses

If loading is to take place over some important public holiday e.g. Christmas and New year, or in Moslem countries, during the fasting period of Ramadan, even more port time should be allowed. Alternatively, if allowed time is described as ‘shinc’ not ‘sshex’, less allowance will be needed, perhaps 15 days maximum. Even with ‘shinc’ terms, however, there will be inevitable delays on arrival, for shifting, waiting for tides, etc.’ As a rule of thumb there is no ‘magic formula’ that can be used to calculate overall port time in normal ‘shex/fhex’ circumstances, and that is to multiply the original figure by a factor of 1.4. Thus, taking the ‘KINGFISHER’, 35,000 tonnes divided by 2,500 = 14 days x ‘1.4’ = 20 days, and that latter figure should be entered in the estimate ‘box’ under loading port time, on which loading port bunker consumption should be based. This ‘system’ is perfectly adequate for most occasions and, in general, the full time allowance should be placed in our estimate form and allowance for demurrage and/or despatch should be ignored. Unfortunately, very little is straightforward in shipping, and different criteria have to be used for what are termed ‘demurrage’ or ‘despatch’ trades. There are certain trades – bulk sugar is one – where it is well known in the dry-cargo freight market that ships habitually load (or discharge) well within their permitted laytime and, indeed, shippers (or receivers) expect to earn considerable despatch money. In order to ensure that an estimate for a ‘despatch trade’ shows a realistic result, the actual expected port time should be entered in the itinerary section, with the amount calculated to be payable for despatch entered as an expense. This third stage is where all the various costs that can be foreseen are collated and analysed.