Third Edition 2010 Worldscale – A Tanker Chartering Tool WORLDSCALE – A Tanker Chartering Tool Third Edition 2010 International Association of Independent Tanker Owners www.intertanko.com Whilst every effort has been made to ensure that the information contained in this guide is correct, INTERTANKO cannot accept any responsibility for any errors or omissions or any consequences resulting therefrom. No reliance should be placed on the information contained in this publication without independent verification. All rights reserved. No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of INTERTANKO. The name INTERTANKO and logo are trademarks of INTERTANKO, and any request to use the logo should likewise be addressed to the trademark owner. © INTERTANKO 2010 We would appreciate comments, which should be addressed to: kristian.fuglesang@intertanko.com or: postmaster@intertanko.com The Worldscale Schedule can be obtained from the joint issuers: The Worldscale Associations and members of INTERTANKO’s Worldscale Committee have been most co-operative in helping the author with the information required to prepare this booklet. However, it must be emphasised that the comments of this publication are those of INTERTANKO alone. The Worldscale Associations can in no way be held responsible for any of these comments. The quotations and references made to the Worldscale Schedule are all from the 2010 edition. Cover photograph courtesy of Teekay Corporation First edition ‘New Worldscale – A New Tanker Chartering Tool’ published 1988 Second edition ‘Worldscale – A Tanker Chartering Tool’ published 2001 Third edition ‘Worldscale – A Tanker Chartering Tool’ published 2010 Compiled by WORLDSCALE ASSOCIATION (LONDON) LIMITED Copenhagen House 5 –10 Bury Street London EC3A 5AT United Kingdom Telephone:+44 207 456 6600 Telefax:+44 207 456 6601 E-mail: wscale@worldscale.co.uk WORLDSCALE ASSOCIATION (NYC) INC 116 John Street – Suite 620 New York N.Y. 10038 U.S.A. Telephone:+1 212 422 2786 Telefax:+1 212 344 4169 E-mail: worldscale@earthlink.net 4INTERTANKO ‘Worldscale – A Tanker Chartering Tool’ Third Edition, 2010 CONTENTSpage PREFACE6 1.WORLDSCALE IN BRIEF6 2.WHAT IS A FREIGHT SCALE?7 2.1.Worldscale – a Facilitator of Competition7 2.2.Worldscale – the Basic Function7 2.3.Worldscale – Flat Rate Calculation8 2.4.Worldscale – Distortions9 2.5.Worldscale – Voyage and Market Comparisons9 2.6.Worldscale – the Dilemma9 3.WORLDSCALE PARAMETERS10 3.1.Standard Vessel10 3.2.Fixed Daily Hire Element10 3.3.Laytime10 3.4.Port Time11 3.5.Speed11 3.6.Bunker Price11 3.6.1.Bunker Clause13 3.6.2.Non-propulsion Bunkers14 3.7.Port Costs14 3.8.Voyage Distances15 3.9.Exchange Rates17 3.10.Trans-Shipment Areas17 3.11.Revision Policy18 3.12.Segregated Ballast Tanks (SBT)19 4.VARIOUS OTHER ASPECTS20 4.1.Routeing20 4.2.Definition of Port Costs21 4.3.Port Charges for Charterers’ Account22 4.4.Differentials22 4.4.1.Variable Differentials22 4.4.2.Fixed Differentials23 5.COSTS27 5.1.Retroactive Port Charges27 5.2.Port Charges not yet reflected in Worldscale Rates27 5.3.Time-Based Port Charges27 5.4.Straits and Canals28 5.5.Certificates of Financial Responsibility (USA)28 5.6.Security Charges in Ports – ISPS Costs29 5.7.Seasonally Incurred Costs29 5.8.Heating of Cargo29 5.9.Shifting Costs30 5.10.Slop Disposal, Ballast Reception and Ballast Exchange Costs30 6.TAXES32 7.BROKERS’ COMMISSION32 8.CARGO QUANTITY33 8.1.Definition33 8.2.Part Cargo in Rotterdam33 8.3.Load Line33 9.INERT GAS AND CRUDE OIL WASHING34 5INTERTANKO ‘Worldscale – A Tanker Chartering Tool’ Third Edition, 2010 10.SHORT VOYAGES34 11.MULTIPLE VOYAGES34 12.ROTATION OF PORTS35 13.DELAYS FOLLOWING COMPLETION OF LOADING36 14.RELOADING, BACKLOADING, CO-MINGLING OR BLENDING36 15.DEVIATION37 16.PORT ARRIVAL AND DEPARTURE TIME37 17.SAME PORT LOADING OR DISCHARGING37 18.WAITING TIME38 19.CURRENCY38 20.INSURANCE38 21.DEMURRAGE39 22.LUMP SUM40 23.MINIMUM RATES40 24.R.O.B, O.B.Q AND OVERAGE41 25.INTERPRETATION41 26.DEPARTURE FROM STANDARD TERMS41 27.SUPPLEMENTARY MESSAGES42 28.EFFECTIVE DATE42 29.PORT RANGES43 30.WORLDSCALE IN ELECTRONIC FORM43 31.ARABIAN GULF, BLACK SEA AND LAKE MARACAIBOADDITIONS45 32.THE CONSTITUTION OF THE WORLDSCALE ASSOCIATIONS45 33.INTERTANKO’S WORLDSCALE COMMITTEE47 34.THE FUTURE48 APPENDIX I–PREVIOUS SCALES49 APPENDIX II–EXTRACTS FROM INTERTANKO’S 1988 PUBLICATION59 APPENDIX III–PREAMBLE (EXTRACTS)–2010 WORLDSCALE SCHEDULE67 INDEX107 INTERTANKO London St Clare House 30-33 Minories London EC3N 1DD United Kingdom Tel:+44 20 7977 7010 Fax:+44 20 7977 7011 london@intertanko.com INTERTANKO Oslo Nedre Vollgate 4 5th floor PO Box 761 Sentrum N-0106 Oslo Norway Tel:+47 22 12 26 40 Fax:+47 22 12 26 41 oslo@intertanko.com INTERTANKO Asia 5 Temasek Boulevard, #12-07 Suntec City Tower 5 Singapore 038985 Tel:+65 6333 4007 Fax:+65 6333 5004 singapore@intertanko.com INTERTANKO North America 801 North Quincy Street – Suite 200 Arlington, VA 22203 USA Tel:+1 703 373 2269 Fax:+1 703 841 0389 washington@intertanko.com INTERTANKO Brussels Rue du Congrès 37-41 B-1000 Brussels Belgium Tel: +32 2 609 54 40 Fax: +32 2 609 54 49 brussels@intertanko.com www.intertanko.com Design: mark@theclubb.co.uk