BAF

Bunker adjustment factor

Related Terms

BARGE

Flat-bottomed boat for carrying cargo or bunker oil, usually pulled by tugs.

BUNKER

Fuel consumed by the engines of a ship

IBIA

International Bunker Industry Association

FOBAS

Fuel Oil Bunker Analysis

B.A.F.

Bunker Adjustment Factor. The fuel charge adjustment to balance market price for bunkers.

B.D.N.

Bunker delivery note.

BDN

Bunker delivery note.

BOB

Bunker on Board

TIME CHARTERER

The charterer has the use of the ship for a specific trip or a period of time during which he may employ her for his own account. He may direct her within the trading limits agreed in the charter-party and, in normal circumstances, the Master must obey these orders. While the time charterer has the commercial control, the owner retains responsibility for the vessel and the Master and crew remain in his employment. The hire, usually calculated per day or per deadweight metric or long ton, is paid in advance at regular, agreed intervals, normally semi-monthly or monthly. Normally, the charterer pays for the fuel on board at the time he accepts delivery and for fuel supplied while the vessel is on hire. When he hands the vessel back to the owner, the owner pays for what remains on board. The prices applicable on delivery and redelivery are the agreed bunker prices in the charter. The owner pays for the running costs of the vessel. If the ship breaks down or, as a result of the shipowner's fault, the charterer does not have the use of the vessel, the vessel goes 'off-hire' for that period subject to any terms in the charter-party. Time charterers may be owners who want to temporarily augment their own fleet; charterers who have a variety of commitments to meet; charterers who believe long-term chartering will hedge the market; operators who see a profit by taking voyage contracts from charterers and time chartering vessels themselves to cover those contracts. Where a time charterer issues and signs his own bill of lading, he may be held to be a 'carrier' for the purposes of the Carriage of Goods by Sea Act 1971.

WORLDSCALE

A freight fixing system for tankers. In the tanker market, the 'freight fixing system' differs a lot. The use of an 'International Scale' now called the ''New World-wide Tanker Nominal Freight Scale' or simply the '(new) Worldscale' (NWS), is the main characteristic of the tankers' chartering. Normally the Worldscale is being used for tanker cargoes over 10,000 tons. By using such an international scale (the new Worldscale), the parties can compare and evaluate the freight rates for different voyages and different market levels in an easier way. The Worldscale is a table containing freight rates for several tanker trades, taking into account all 'cost related' items involved in each one of them. Such items are: The distances between practically all conceivable tankers trades which are comparatively few and which distances for owners' information are printed in the NWS table. The port costs (disbursement accounts D/A etc.). The port time (four days). Bunker costs. Other costs. And an additional fictional cost element of USDollars 12,000 per day. The basis of the Worldscale is a standard tanker of 75,000 tons dwt , on which round voyage calculations are made taking into account the above mentioned 'cost' items. In this way the freight per metric ton required by the standard ship in each trade has been calculated. The result is found in the Worldscale tables given as a certain amount of dollars (freight) per ton for each trade. These results (values) are called WS 100 or WS Flat. It is obvious that the daily cost of USDollars 12,000 is an imaginary amount, used only as a basis for calculations. Therefore WS 100 is not the actual figure which would cover the daily and voyage costs of the standard ship but an indicator used as a convenient basis level. The Worldscale tables are being updated / revised yearly, in an effort to keep the basis for the calculations in line with actual conditions and actual costs such as port costs, bunker prices etc. Nevertheless the 'fixed hire element' of USDollars 12,000 is maintained. Usually, the tanker owners / managers, produce a series of voyage calculations for the most frequent trades applying to the type and size of their own ships according to the WS. In this way they have available a number of different WS rates which they can compare at a glance with the offered alternative employments. A fixture concluded at WS 80, actually means that the owners will be paid a freight equal to 80% of the freight which appears on the Worldscale table for the specific trade. A direct comparison between a fixture concluded, for instance, at WS 80 and another fixture in an other trade which was concluded at a higher or lower rate, is not correct, since the various cost elements (bunkers, port costs, daily costs) have a different impact on different voyages.

Related questions

MarineProHelp 2018 - 2021