Worldscale
Encyclopedia
Worldscale is a unified system of establishing payment of freight rate for a given oil tanker
's cargo. Worldscale was established in November 1952 by London Tanker Brokers’ Panel on the request of British Petroleum and Shell
as an average total cost of shipping oil from one port to another by ship. A large table was created.
The same scale is used today, although it was merged with the American Tanker Rate Schedule (ATRS) in 1969. By 2002, the table included the average cost of 320,000 voyages in permutations of from one load and one discharge port to five loads and ten discharge ports. Worldscale is produced by Worldscale Association (NYC) Inc. for the Americas and by Worldscale Association (London) Ltd. for the rest of the world. The freight for a given ship and voyage is normally expressed in a percentage of the published rate and is supposed to reflect the freight market demand at the time of fixing.
Following are some samples.
In negotiating a price to pay, the above table is referred to as WS100 or 100% of Worldscale. The actual price negotiated between shipowner and charterer can range from 1% to 1000% and is referred to respectively as WS1 to WS1000, depending on how much loss the first is willing to take on that voyage and how much the latter is willing to pay.
Oil tanker
An oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...
's cargo. Worldscale was established in November 1952 by London Tanker Brokers’ Panel on the request of British Petroleum and Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
as an average total cost of shipping oil from one port to another by ship. A large table was created.
The same scale is used today, although it was merged with the American Tanker Rate Schedule (ATRS) in 1969. By 2002, the table included the average cost of 320,000 voyages in permutations of from one load and one discharge port to five loads and ten discharge ports. Worldscale is produced by Worldscale Association (NYC) Inc. for the Americas and by Worldscale Association (London) Ltd. for the rest of the world. The freight for a given ship and voyage is normally expressed in a percentage of the published rate and is supposed to reflect the freight market demand at the time of fixing.
Following are some samples.
| From Yokohama to: | US$/tonne | Miles |
|---|---|---|
| Adelaide | 10.60 | 10,574 |
| Aden | 12.39 | 13,038 |
| Chiba | 2.90 | 50 |
In negotiating a price to pay, the above table is referred to as WS100 or 100% of Worldscale. The actual price negotiated between shipowner and charterer can range from 1% to 1000% and is referred to respectively as WS1 to WS1000, depending on how much loss the first is willing to take on that voyage and how much the latter is willing to pay.
External links
- Worldscale Association website
- Worldscale Association history
- Chapter in Maritime Economics
- Intertanko Worldscale Page
- Worldscale goes to the Internet
- Worldscale: A Primer
- Tanker market could head for 'uncharted territory
- Worldscale section in International Energy Markets
See also
- Oil tankerOil tankerAn oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...
- Ship transportShip transportShip transport is watercraft carrying people or goods . Sea transport has been the largest carrier of freight throughout recorded history. Although the importance of sea travel for passengers has decreased due to aviation, it is effective for short trips and pleasure cruises...
- AffreightmentAffreightmentAffreightment is a legal term used in shipping.Contract of Affreightment is the expression usually employed to describe the contract between a ship-owner and another person called the charterer, by which the ship-owner agrees to carry goods of the charterer in his ship, or to give to the charterer...
- Chartering (shipping)Chartering (shipping)Chartering is an activity within the shipping industry. In some cases a charterer may own cargo and employ a shipbroker to find a ship to deliver the cargo for a certain price, called freight rate. Freight rates may be on a per-ton basis over a certain route or alternatively may be expressed in...