Baltic Exchange has launched a new Time Charter Equivalent (TCE)
earnings calculator, designed to bring clarity and consistency to
freight assessments in an increasingly complex market. The calculator
builds on the Baltic’s long-standing TCE methodology, which has been
in use since 2008.
Users can see the constituent parts of the standard calculation,
including income lines, expenses, port and canal charges, helping ensure
transparency and accurate benchmarking. This is particularly valuable as
ships adapt to new trading patterns driven by geopolitical tensions and
shifting global routes.
“Market participants have been asking for greater transparency and
consistency in how freight earnings are compared. The new calculator
builds directly on our established TCE benchmarks, turning a complex
calculation into a clear, practical tool that reflects real-world
trading conditions against the Baltic standard vessels and routes,”
said Stephen Aitchison, Senior Freight Market Assessor at Baltic
Exchange.
“This calculator provides useful output from a complicated set of
variables into a normalised and comparable format, including those
related to emissions regulation,” said Martin Crawford-Brunt,
Emissions Lead at Baltic Exchange. “It allows users to assess their
vessel against the trusted Baltic market standard, enabling them to
understand the differential in $/mt or $/day.”
“The clear display of the many freight components supports
better-informed commercial decisions as it allows users to test
alternative speeds and consumptions by route,” added Crawford-Brunt.
“It’s a practical tool for owners, charterers and brokers alike, to
shows the potential commercial benefit of efficiency measures.”
The tool currently focuses on dry bulk carriers, oil tankers (crude and
products), LNG and LPG carriers, reflecting the standardised Baltic
routes for these sectors. It is designed to evolve, with future
iterations expected to integrate complex emissions regulations and other
operational variables.
“The goal is to provide a tool that improves the quality of
conversation between freight buyers and sellers, enabling better
decision-making and more accurate pricing,” said Crawford-Brunt.
“This is an evolving tool, and we welcome feedback from users to help
us refine and enhance its capabilities.”
The calculator complements other Baltic tools, including the FuelEU
Maritime calculator and voyage cost estimators, enabling users to assess
the impact of fuel choices, emissions compliance, and efficiency
improvements in a fully integrated framework. By linking these tools,
the Baltic provides a comprehensive suite for transparent freight and
operational analysis across the market.
The new TCE earnings calculator represents a step forward in Baltic’s
commitment to bringing clarity to freight markets, supporting the
industry as it navigates increasing regulatory and operational
complexity.
Baltic Exchange has launched a new Time Charter Equivalent (TCE)
earnings calculator.
About Baltic Exchange
Baltic Exchange is the world’s only independent source of renowned
maritime market information for the trading and settlement of physical
and derivative contracts. Its international community of over 5,000
members encompasses the majority of world shipping interests and commit
to a strict code of business conduct, encapsulated with our motto ‘Our
Word, Our Bond’.
Headquartered in London with regional offices in Singapore, Shanghai,
Athens, Stamford and Houston, Baltic Exchange members are responsible
for a large proportion of dry, wet, and gas bulk fixtures, as well as
freight derivative trades, air freight and containers data, and the sale
and purchase of merchant vessels. Baltic Exchange data is routinely
relied upon to settle physical and futures contracts.
Baltic Exchange is authorised by the United Kingdom’s Financial
Conduct Authority. In addition to freight data, it provides dispute
resolution, escrow services, and professional education opportunities
for the wider shipping industry. It also offers critical shipping
investment data, carbon emissions calculators and a Know-Your-Customer
platform tailored to those operating in the maritime sector.
