Cost Structure And Period Rates for Oil Tankers

Cover Cost Structure And Period Rates for Oil Tankers
Cost Structure And Period Rates for Oil Tankers
Zenon S Zannetos
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We must however make X, a function of the length of the time charter. Hence „L, -5n. X 4 = V R (1-e ) where V L = the difference between the liberal and restrictive R plan, n = time charter duration in years. To find the value of 5 we may set: e -612 = 0. 05 or 0. 10 Estimation of X : the efficiency premium If we now look at vessels of different sizes still at any fixed point in time and for charters of the same time duration, we are confronted with three consequences of size as these affect ef...ficiency. These are: 1. Economies reflected in decreasing costs of shipbuilding per DWT of capacity.
2. Economies reflected in increases in transportation capacity more than proportional to increases in deadweight tonnage .
3. Inflexibilities of size as previously explained.
Of all the above factors, the first one is reflected in R g so we need not provide for it here. The process of translation of long-term rates, in terms of $ per ton of oil delivered, will take - 20 care of the second factor.


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