Voyage Estimation

Voyage estimation projects the revenue and costs of a proposed fixture to derive the time charter equivalent earnings per day, the metric used to compare trades on a common basis. The estimate sums freight or hire income, then subtracts bunkers (laden and ballast legs at planned speeds), port and canal costs, and commissions, and divides the result over the total voyage days. Chartering desks run it before fixing, and freight derivative desks use the same logic to value forward positions. It draws on disbursement accounts, distance tables, port costs, and bunker prices.