(MCOM 6) freight rates (IRH, containers, charters) + Baltic Exchange + BIMCO

international road haulage freight rates

what are international road haulage freight rates based on?

• volume

• weight

• commodity

• origin/destination of cargo

international road haulage freight rates

what are rates charged for the carriage of vehicles or trailers on vehicular ferries based on?

• trailer/vehicle length

• loaded or empty

• accompanied or unaccompanied

international road haulage freight rates

what type of cargo will have additional charges?

• valuable cargo

• O/H, O/L, O/W

maritime container rates

what are rates for Full container load (FCL) determined by?

• container type - GP/FR/OT/RF

• origin/destination

maritime container rates

what does the rate include and exclude?

• includes inland transportation cost & terminal handling expenses

• excludes custom clearance charges and demurrage

maritime container rates

what does demurrage mean?

charge for cargo overstaying at port

voyage and time charters

what are the requirements ship charters have before deciding to charter any ship?

• desired capacity

• speed

• general layout of the vessel

• trade and ports of call

• date and place of commencement and duration

• type of cargo

• classification and registration of vessel

• range of viable fixture rates

• type of charter

voyage and time charters

how does desired capacity affect a ship charterer’s decision of charting a vessel?

• load displacement - ship’s total weight when full

• deadweight - weight of cargo + fuel + supplies + people

• light displacement - ship’s weight when empty

• grain capacity - max space for loose cargo

• bale capacity - space for boxed/bagged cargo

voyage and time charters

how does speed affect a ship charterer’s decision of charting a vessel?

type of propulsion

voyage and time charters

what about the general layout of vessel affect a ship charterer’s decision of charting a vessel?

• no. of hatches

• lifting gear

voyage and time charters

how does the trade and ports of call affect a ship charterer’s decision of charting a vessel?

determines type of vessel required, draft, length, beam

voyage and time charters

how does the type of charter affect a ship charterer’s decision of charting a vessel?

• demise (bareboat) - charterer takes full control of ship, including crew and operations

• voyage

• time

voyage and time charters

what are the charter conditions of a voyage charter?

• charter for 1 or more voyages

• payment in $/tonnes

• ship owner pays for all costs (capital, operating, voyage)

voyage and time charters

what are the charter conditions of a time charter?

• charter for period of time

• payment in $/day

• ship owner pays for capital and operating cost

• charterer pays for voyage cost

voyage and time charters

what are the charter conditions of a bareboat charter?

• charter for period of time

• payment in $/day

• ship owner pays for capital cost

• charterer pays for operating and voyage cost

Baltic exchange and BIMCO

what is the relationship between Baltic exchange and BIMCO?

• Baltic exchange provides the numbers such as market rates

• BIMCO provide the contracts such as legal terms and conditions

• both are used together in global chartering agreements and freight negatiations

Baltic exchange and BIMCO

what is the Baltic exchange?

• maritime market information provider and membership organization that plays a central role in the global shipping industry

• world’s leading source of independent maritime market data for the trading and settlement of physical and derivative shipping contracts

Baltic exchange and BIMCO

what is BIMCO?

world’s largest international shipping association, representing shipowners, operators, brokers & agents

Baltic exchange and BIMCO

what are the functions of the Baltic exchange

• market information and indices

• price benchmarking

• dispute resolution and ethics

• chartering contracts and documentation

• membership and networking

• training and research

Baltic exchange and BIMCO

what are the functions of BIMCO?

• standard contracts and clauses

• legal advice and support

• shipping policy and advocacy

• education and training

• information and resources

• sustainability and digitalisation

Baltic exchange and BIMCO

what is the Baltic exchange’s function in market information and indices?

• publishes key freight market indices such as Baltic Dry Index (BDI), Baltic Capesize Index (BCI) & Baltic Panamax Index (BPI)

• reflects daily freight rate movements and are widely used in the shipping and investment sector

Baltic exchange and BIMCO

what is the Baltic exchange’s function in price benchmarking

• provides reliable benchmarks for time charter and voyage charter rates

• essential for fixing contracts and settling freight derivatives

Baltic exchange and BIMCO

what is the Baltic exchange’s function in dispute resolution and ethics?

• promotes fair dealing and provides a platform for arbitration & mediation of shipping disputes

• encourages high ethical standards in chartering

Baltic exchange and BIMCO

what is the Baltic exchange’s function in chartering contracts and documentation?

works with BIMCO and others to develop and promote standardized charter party forms and shipping contracts

Baltic exchange and BIMCO

what is the Baltic exchange’s function in membership and networking?

• maintains a global membership of shipbrokers, charterers, shipowners & traders

• facilitates trusted networking and relationships

Baltic exchange and BIMCO

what is the Baltic exchange’s function in training research?

offers education and training programs related to shipping markets and freight derivatives

Baltic exchange and BIMCO

what is BIMCO’s function in standard contracts and clauses?

• BIMCO creates and updates standard charter party agreements, bills of lading, and other contracts used in global shipping

• these documents help reduce disputes and ensure legal consistency

Baltic exchange and BIMCO

what is BIMCO’s function in legal advice and support?

• offers expert legal guidance to members on charter party disputes, cargo claims, and maritime law

• BIMCO also publishes guidelines and best practices

Baltic exchange and BIMCO

what is BIMCO’s function in shipping advocacy?

represents the shipping industry in international forums to advocate for fair regulations on emissions, safety, and sustainability

Baltic exchange and BIMCO

what is BIMCO’s function in education and training?

provides professional courses, webinars, and certifications on maritime law, chartering & operational best practices

Baltic exchange and BIMCO

what is BIMCO’s function in information and resources?

maintains databases and newsletters that provide members with market insights, contractual updates & operational alerts

Baltic exchange and BIMCO

what is BIMCO’s function in sustainability and digitalisation?

works on developing green shipping strategies, digital tools, and environmental standards for the maritime industry

what are shipping derivatives?

price guesses for shipping