The theme is Voyage profit and loss calculation.
It is always important to calculate the profit or loss a shipping company will achieve on a voyage. The calculation of the voyage profit and loss is mainly done at the following stages:
- When planning a voyage
- When making a schedule
- When considering additional port calls
- At the completion of voyage
Especially, in order to make appropriate decision, shipping company shall calculate the profit and loss of such action in advance.
Now let’s do the calculate Voyage profit and loss.
Profit or loss is calculated by deducting various cost from the total freight income.
First, Port expenses includes wharfage, pilotage, tugboat fees, agency fees, and etc.
Second, Stevedore charges will vary depends on the following factors,
Mode of operation whether it is done by RORO or LOLO. Time of operation whether it is done during night time or not. Cargo nature such as bulky cargo, heavy cargo or lengthy cargo. Also, measurement and tally cost are usually included in stevedore charges.
Third, Bunker cost. Bunker price differs from port to port, and it is constantly fluctuating according to the market principles. Fuel oil is consumed for vessel propulsion, whereas Diesel oil is used for generating electricity. These costs are calculated separately.
The last one is charter hire. Unless it is one way charter, charter hire cost shall be considered during the of period of charter.
As a result of deducting the abovementioned costs from the total ocean freight income, we will get the profit or loss of the voyage.
Today's summary is;
Voyage profit and loss is calculated when planning a voyage, making a schedule, considering an additional port calls and at the completion of voyage.
We will not able to carry out any plans without doing the calculation. It is also needed when making voyage adjustments such as additional calls etc.
Voyage profit or loss is calculated by deducting port charges, stevedore fees, bunker cost and charter hire from total freight income.
I hope you find today’s episode helpful, I am Rebecca. See you next time.