ShipCalculators.com

Spot market

C1. Commercial shipping, chartering, economics and finance

Definition

Single voyage market.

The single-voyage market, where a ship is fixed for one cargo at a freight rate set by current supply and demand. Spot rates swing far more sharply than period time-charter rates because they price the immediate balance of available tonnage against prompt cargoes. Owners chase the spot market when they expect rates to rise and lock in period cover when they expect them to fall, a timing bet at the center of shipping economics.