Bringing Clarity to Freight Earnings
For years operators have used the term Time Charter Equivalent to compare voyage returns, yet each company often filled the formula with different assumptions. The new Baltic Exchange calculator standardises every variable, from bunker prices to canal levies, and displays them side by side. As a result charterers and owners can discuss earnings with a common vocabulary instead of spreadsheets that never match. This shared view reduces commercial friction and accelerates deal making.
Key Features at Launch
· Interactive sliders adjust speed, fuel type and waiting time.
· Built in databases list current tariffs for the Suez and Panama canals.
· Separate lines show port expenses, lifting the curtain on local cost drivers.
· Results reference the benchmark Baltic vessel classes, ensuring like for like comparison.
An insightful discovery appears when users compare the same route with two different fuel grades. Because the calculator brings emissions cost into the equation, a ship burning very low sulphur fuel oil may appear cheaper on day rates but more costly once carbon pricing is added. That live contrast encourages an outcome based discussion instead of a debate on individual line items.
A Roadmap for Expansion
The Baltic team has already signalled that future versions will link directly with its FuelEU Maritime and voyage cost estimators. When that occurs users will be able to simulate how a switch to bio LNG or methanol shapes both daily earnings and compliance exposure over an entire contract period. Banks who finance vessels could plug the output into credit models, giving greener vessels a measurable advantage.
Conclusion
By turning a once opaque calculation into an intuitive online tool, Baltic Exchange equips maritime professionals with the transparency they requested. The calculator supports smarter routing, better fuel choices and ultimately a more efficient global trade network.