Handysize Cargo Orders: Stowage Factor, Cargo Intake and Voyage Charter Examples

In Handysize dry bulk chartering, a cargo order must be examined from both a commercial and a technical point of view. The nominated quantity may look suitable at first sight, but the ship’s actual cargo intake depends on the relationship between deadweight, hold capacity, stowage factor, draft, port restrictions, bunkers, fresh water, constants, and the required trading range. A cargo order is therefore not only a description of cargo and ports; it is also the starting point for deciding whether the proposed voyage can be performed safely, efficiently, and profitably.

For Handysize ships, this assessment is especially important because these ships often trade into smaller ports, river berths, draft-restricted terminals, and regional cargo routes where small changes in cargo quantity, stowage factor, or arrival draft can materially affect the final intake. A ship may have enough deadweight on paper but insufficient cubic space for a light cargo. Conversely, a ship may have enough hold space for a dense cargo but may reach her deadweight or draft limit before the holds are full.

Assume a handysize bulk carrier ship with the following approximate particulars:

• About 33,000 DWT
• Grain/Bale Capacity: 46,000/45,000 cubic meters
• Approximately 1,625,000/1,590,106 cubic feet (1 cubic foot = 0.0283 cubic meters)

The following examples show how the same ship may produce very different cargo intake results depending on the type of cargo and the relevant stowage factor. Dense cargoes normally test the ship’s weight-carrying ability, while light cargoes normally test the ship’s cubic capacity.

Iron Ore Cargo Intake: Weight Becomes the Limiting Factor

Iron ore SF: 14 cubic feet per ton / 0.40 cubic meters per ton

Iron ore is a heavy bulk cargo, so the calculation should be made against the ship’s grain capacity. The theoretical volume-based intake is calculated as follows:

46,000 cubic meters / 0.40 cubic meters per ton = 115,000 tons

The calculation shows that the holds could theoretically contain a far greater quantity of iron ore than the ship is permitted to carry by weight. However, the ship’s deadweight is only about 33,000 tons. The practical result is that the ship cannot load anywhere near the theoretical volume figure. The cargo intake is controlled by deadweight, draft, stability, load line restrictions, bunkers, constants, and the master’s final loading plan.

For this type of cargo, the ship will normally be weight-full before she is space-full. In simple commercial terms, the ship has sufficient cubic capacity but not sufficient deadweight to use all that space for such a dense commodity.

Bagged Grain Cargo Intake: Bale Capacity Must Be Checked

Grain in bags SF: 45 cubic feet per ton / 1.30 cubic meters per ton

When grain is carried in bags, the relevant figure is normally bale capacity rather than grain capacity. Bale capacity reflects the practical space available for bagged, packaged, or non-free-flowing cargo. The calculation is:

45,000 cubic meters / 1.30 cubic meters per ton = 34,615 tons

The ship has enough bale capacity to accommodate about 34,615 tons of bagged grain by volume. Since the ship’s deadweight is about 33,000 tons, the decisive restriction remains the ship’s carrying capacity by weight. In practice, the owner would still deduct bunkers, water, stores, constants, and any required safety margin before confirming the final cargo intake.

This example demonstrates a closer balance between space and deadweight. The ship is not dramatically short of volume, but the final cargo quantity is still likely to be limited by deadweight and operational deductions.

Woodchips Cargo Intake: Space Becomes the Limiting Factor

Woodchips SF: 90 cubic feet per ton / 2.50 cubic meters per ton

Woodchips are light and bulky. Although the ship has about 33,000 DWT, the cargo occupies a large amount of space per ton. Because woodchips are carried in bulk, grain capacity is used:

46,000 cubic meters / 2.50 cubic meters per ton = 18,400 tons

The ship may still have unused deadweight after loading 18,400 tons, but the holds would already be full. The limiting factor is therefore cubic capacity, not weight. The ship cannot load additional woodchips simply because she has spare deadweight remaining. There must also be available hold space.

For high-stowage-factor cargoes, owners and shipbrokers must pay close attention to grain capacity, cargo trimming, hatch configuration, hold shape, and the charterer’s declared stowage factor. A small difference in the stowage factor can make a significant difference to the total cargo quantity that the ship can load.

Why Stowage Factor Is Central to Cargo Order Evaluation

Stowage factor shows how much space one ton of cargo will occupy. A low stowage factor indicates a dense cargo, while a high stowage factor indicates a light or bulky cargo. In practical chartering, this figure helps owners and brokers determine whether the cargo will be deadweight-limited or space-limited.

The stowage factor also affects freight assessment, deadfreight exposure, cargo nomination, load planning, demurrage risk, and the owner’s ability to compare alternative employment opportunities. An order that appears attractive on freight may become less attractive if the ship cannot lift the full advertised quantity or if the port restrictions require a reduced intake.

Before offering a ship against an order, the owner should normally review the ship’s summer deadweight, current draft, constants, bunkers required for the voyage, load line zone, port draft, air draft, berth limitations, cargo characteristics, and any cleaning or suitability requirements. The more precise the cargo order, the easier it is to evaluate the employment.

Main Information Usually Found in a Voyage Charter Order

A voyage charter order sets out the essential commercial and operational terms of a proposed cargo movement. A well-drafted order allows the market to understand the cargo, the route, the timing, and the contractual expectations before detailed negotiations begin.

A typical order may include:

• Charterer’s name and place of business
• Cargo type, quantity, tolerance, and stowage factor
• Loading port, berth, or loading range
• Discharging port, berth, or discharging range
• Laycan
• Loading and discharging rates
• Laytime terms such as SHINC, SHEX, SHEX EIU, or reversible laytime
• Ship age, flag, class, gear, hold, hatch, or size restrictions
• Cargo suitability requirements such as clean holds, grabs, cranes, or weather-tight hatch covers
• Intended charterparty form
• Commission, brokerage, or address commission payable by the owner

When the order is unclear, the negotiation may be delayed or the parties may later disagree about cargo quantity, port nomination, laytime, commission, cargo readiness, or ship suitability. For that reason, experienced shipbrokers prefer orders that are concise but complete.

Example of a Voyage Charter Order: Ore in Bulk

• Acct: South Africa Minerals, Richards Bay, South Africa
• 25,000 metric tons ore harmless in bulk SF 22/23
• Richards Bay / Bourgas-Iskenderun range, charterer’s option
• Laycan: Second half March
• Loading/discharging: 5,000 PWWD SHINC / 4,000 PWWD SHINC
• Ship: Maximum 20 years old
• Charterparty form: GENCON
• Commission: 2.5 percent total

This order describes a dense mineral cargo moving from Richards Bay to a discharge port within the Bourgas-Iskenderun range at the charterer’s option. The cargo quantity is 25,000 metric tons, and the stowage factor of 22/23 cubic feet per ton indicates that the cargo will be assessed mainly against the ship’s deadweight, draft, and permissible load line.

The laycan in the second half of March defines the period during which the ship must be ready to load. The loading and discharging rates are stated on a weather working day basis, with Sundays and holidays included. These rates are important because they determine the time allowed for cargo operations and may later affect demurrage or despatch calculations.

The order also states a maximum ship age of 20 years, names GENCON as the intended charterparty form, and provides for a total commission of 2.5 percent. This gives owners enough information to decide whether their ship is commercially and technically suitable for the proposed employment.

Example of a Voyage Charter Order: Bagged Rice

• Acct: Eastern Grain Traders, Bangkok, Thailand
• 28,000 metric tons 5 percent more or less charterer’s option bagged rice SF 47/49
• Bangkok Roads / Mombasa, one safe berth
• Laycan: 5/15 April
• Loading/discharging: 3,000 PWWD SHEX EIU / 2,500 PWWD SHEX EIU
• Ship: Handy size, clean dry holds, preferably geared
• Charterparty form: GENCON with grain and bagged cargo rider clauses
• Commission: 3.75 percent total

This order concerns bagged rice, which must be assessed by reference to bale capacity because the cargo is packed and does not flow into the holds like free bulk cargo. The declared stowage factor of 47/49 cubic feet per ton means the owner must check both the bale capacity and the ship’s deadweight before confirming whether the full cargo quantity can be lifted.

The cargo quantity is expressed as 28,000 metric tons 5 percent more or less at charterer’s option. This tolerance gives the charterer flexibility to nominate a final cargo quantity within the agreed range. However, the owner must be careful that the higher end of the tolerance is still compatible with the ship’s intake, bunkers, draft, and port restrictions.

The order calls for clean and dry holds because bagged rice is sensitive to moisture, odor, contamination, and residue from previous cargoes. A geared ship may be preferred where shore equipment is limited or where cargo operations require the ship’s cranes. The laytime terms are stated as SHEX EIU, meaning Sundays and holidays are excluded unless used. If cargo is worked during excluded periods, that used time may count depending on the agreed wording.

Example of a Voyage Charter Order: Steel Coils and Steel Plates

• Acct: Anatolia Steel Trading, Iskenderun, Türkiye
• 18,000 metric tons steel coils and steel plates SF 38/42
• Iskenderun / Antwerp-Rotterdam range, one safe port, one safe berth
• Laycan: 10/20 May
• Loading/discharging: 2,500 PWWD SHEX UU / 2,000 PWWD SHEX UU
• Ship: Maximum 25 years old, suitable box-shaped holds, good hatch openings
• Charterparty form: GENCON with steel cargo clauses
• Commission: 2.5 percent total

This order is for a semi-finished steel cargo consisting of steel coils and steel plates. Although the quantity is lower than many bulk cargo orders, steel cargo requires careful attention to cargo handling, hold condition, dunnage, lashing, separation, and weather protection. The ship must be suitable not only by capacity but also by hold arrangement and hatch accessibility.

The stowage factor of 38/42 cubic feet per ton suggests a moderately dense cargo. The owner must check deadweight, hold space, load distribution, tank top strength, and any special requirements imposed by the cargo interests or receivers. For steel cargoes, claims can arise from rust, wet damage, improper ventilation, poor stowage, or cargo shifting, so the operational details are commercially important.

The discharging range is expressed as Antwerp-Rotterdam range, which gives the charterer flexibility while still defining the contractual trading area. The wording SHEX UU indicates that Sundays and holidays are excluded, even if used, unless the parties agree otherwise. Because such terms can materially affect laytime and demurrage, they must be checked carefully during recap negotiations.

Example of a Voyage Charter Order: Urea Fertilizer in Bulk

• Acct: Gulf Agrochem Exports, Ruwais, United Arab Emirates
• 30,000 metric tons urea fertilizer in bulk SF 48/50
• Ruwais / Chittagong, one safe berth
• Laycan: 1/10 June
• Loading/discharging: 8,000 PWWD SHINC / 5,000 PWWD SHINC
• Ship: Maximum 15 years old, holds clean, dry, odor-free, and suitable for fertilizer
• Charterparty form: GENCON with fertilizer rider clauses
• Commission: 2.5 percent total

This order covers urea fertilizer in bulk, a cargo that requires clean, dry, and properly prepared holds. Fertilizer cargoes may be sensitive to moisture and contamination, so the charterer will normally require strict hold cleanliness and may reject a ship if the previous cargo or hold condition is unsuitable.

The stowage factor of 48/50 cubic feet per ton means that the cargo is less dense than ore but not as bulky as woodchips. The owner must compare the nominated quantity against grain capacity, deadweight, draft, and the bunkers required for the voyage. For a Handysize ship of about 33,000 DWT, a quantity of 30,000 metric tons may be possible in principle, but the final answer depends on the ship’s actual condition and the port limitations.

The order includes relatively fast loading and discharging rates, both on SHINC terms. This suggests that laytime will continue through Sundays and holidays, subject to weather and any agreed exceptions. The ship age restriction of maximum 15 years may reflect the charterer’s quality requirements, insurance expectations, or terminal acceptance standards.

Example of a Voyage Charter Order: Wood Pellets

• Acct: Baltic Biomass Exporters, Riga, Latvia
• 16,500 metric tons wood pellets in bulk SF 82/88
• Riga / Immingham, one safe berth
• Laycan: 3/12 July
• Loading/discharging: 2,500 PWWD SHINC / 3,000 PWWD SHINC
• Ship: High cubic Handysize ship, weather-tight hatch covers, holds clean and dry
• Charterparty form: GENCON with biomass cargo clauses
• Commission: 3.75 percent total

This order is a useful example of a cargo where the ship’s cubic capacity may be more important than deadweight. Wood pellets are light compared with mineral cargoes, and the stowage factor of 82/88 cubic feet per ton indicates that the cargo will occupy substantial hold space.

For this type of order, an owner should not assume that a 33,000 DWT ship can carry a quantity close to her deadweight. The ship may become space-full well before reaching her maximum deadweight. The broker must therefore check the ship’s grain capacity, hold shape, hatch openings, trimming requirements, and any cargo safety instructions before offering the ship.

The order also highlights the importance of hatch-cover condition and hold dryness. Biomass cargoes can be sensitive to moisture, and charterers may insist on weather-tight hatch covers, clean holds, and careful cargo handling. A high-cubic Handysize ship may be commercially more suitable than a ship with similar deadweight but smaller hold volume.

How to Read Voyage Charter Orders in Practice

A voyage order should be read as a compact commercial message. Each line has a purpose. The account line identifies the charterer. The cargo line shows the commodity, quantity, tolerance, and stowage factor. The port line defines the route and any option available to the charterer. The laycan fixes the loading window. The loading and discharging terms determine the laytime framework. The ship description tells owners whether there are age, gear, hold, class, or suitability restrictions. The charterparty line identifies the contractual starting point, and the commission line shows the cost to the owner.

The broker’s task is to translate that compact message into a practical assessment. Can the ship load the cargo quantity? Is the cargo weight-limited or space-limited? Are the holds suitable? Will the ship meet the laycan? Are the ports safe and reachable? Are the laytime terms commercially acceptable? Are there any hidden risks in the cargo description, port range, charterparty form, or rider clauses?

For Handysize business, this judgment is particularly valuable because these ships work across many cargo types, including ores, grains, fertilizers, steels, cement, logs, minerals, project cargoes, and biomass products. Each cargo has its own operational profile, and the same ship may be excellent for one order but unsuitable for another.

Commercial Value of Accurate Cargo Order Analysis

Accurate cargo order analysis protects the owner, the charterer, and the broker. The owner avoids offering a ship for a cargo that cannot be safely or profitably carried. The charterer gains confidence that the nominated ship can perform the voyage. The broker reduces the risk of misunderstandings during negotiations and helps both sides reach a workable fixture.

A cargo order should therefore never be treated as a simple list of ports and cargo quantity. It is a technical and commercial document that requires careful reading. Deadweight, stowage factor, grain capacity, bale capacity, laycan, port restrictions, cargo handling terms, and charterparty conditions must all be considered together.

In Handysize chartering, the most successful fixtures are usually the result of accurate information, realistic cargo intake calculations, and clear recap terms. A well-prepared voyage order allows the market to respond quickly, while a properly checked ship ensures that the fixture remains practical after the commercial agreement has been made.