Today's theme is Charter Base.

Charter Base is the maximum price of the Ship Charter Cost that can be used for a voyage when planning that voyage.  

Voyage expenses other than Ship Charter Costs are deducted from the total freight. Then that subtracted number are divided by the number of voyage days. Ship Charter Costs are expressed on a daily basis, so the Charter Base is also expressed on a daily basis.

In other words, if you prepare a ship at a lower price than the Charter Base, the voyage will be profitable and if you prepare a ship at a higher price than the Charter Base, the voyage will be loss.

Let's explain in more detail.

Voyage expenses such as port expense, cargo handling fee and fuel expense are deducted from the total freight. The subtracted amount (A) is the amount that includes Profit and Ship Charter Costs.

 

It means, if Ship Charter Costs increases in (A), Profit will decrease relatively and if (A) be Ship Charter Costs only, Profit of the voyage will be zero.  Ship Charter Costs that Profit of the voyage is zero is  Charter Base. If you think about it this way, it is easy to understand how Ship Charter Costs will affect the voyage Profit.