Age Premium - Old Ship Rate Discount

Rate discount for older ship on a given fixture - often 0.5-1 % per year above 15 y.

AgePremiumFreight

Ship ageyearsBase freightUSD/day

Age discount: 2.1%

Net freight: 19,580USD/day

Changing the inputs requires JavaScript. The calculator above shows its default inputs and result. The formula, symbols, and regulatory sources are shown in the Formula section below.

Formula, assumptions, and limits

D = (\text{age} - 15) \cdot 0.7\%

Symbol	Meaning	Unit
$Age$	Years since keel laying	years
$Discount$	Age-related rate reduction	%

Source: Clarksons Sale & Purchase

In short

Rate discount for older ship on a given fixture - often 0.

Learn the theory Ship Finance and Asset Valuation