Charter Rate (TCE) Calculator

TCE converts a voyage charter's net profitability into a $/day figure -- (Net Voyage Revenue minus Total Voyage Expenses) divided by Voyage Duration -- so it can be compared directly against time-charter day-rates for the same vessel type. It is the standard shipping-industry benchmark, published daily for major routes by organizations like the Baltic Exchange, for judging whether a voyage charter is more or less profitable than chartering the vessel out on time.

Broker Commission is paid out of the gross Freight Revenue to the intermediaries who arranged the charter and never reaches the shipowner, so it is subtracted first to arrive at Net Revenue -- the money the owner actually has available to cover voyage expenses and generate profit. This mirrors how commissions are handled in real charter- party freight settlements.

Under a voyage charter, the shipowner bears Fuel Cost, Port Costs, and Canal/ Transit Fees directly, whereas under a time charter the charterer typically pays for fuel and other voyage-specific costs. TCE exists specifically to strip these voyage costs back out of a voyage charter's revenue so the owner can compare its net day-rate profitability against a time charter, where those costs are not the owner's to bear.

It is the minimum gross Freight Revenue (before Broker Commission is deducted) needed just to cover Total Voyage Expenses -- the point at which Voyage Profit would be exactly zero. Earning less than this figure means the voyage runs at a loss before the shipowner even accounts for the vessel's own capital costs, financing, and general overhead.

TCE is Voyage Profit divided by Voyage Duration, so spreading the same total voyage profit across more days produces a lower daily rate. This is why slow-steaming or extended port delays can meaningfully hurt a voyage's TCE even when total revenue and expenses stay unchanged -- time itself is the denominator that converts total profit into a comparable daily figure.