Concordia Maritime’s principal
revenue and cost items |
Income from spot charters
Here, the freight rate is a floating rate based on supply and demand at a specific time. This means that freight rates can fluctuate considerably over a short time.
Income from time charters
Income consist of a freight rate agreed on in advance that stretches over the entire charter period. The size of the freight rate depends on the length of the charter and the state of the market when the contract is signed.
Profit-sharing
Some charters include a profit-sharing clause in addition to the freight rate. Somewhat simplified, this means that we and the customer share the income that exceeds a pre-specified level.
Sale of ships
Another potential income source is the sale of ships. Here, prices vary depending on the market and the condition of the vessels. Timing is thus crucial for a profitable sale.
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Daily running costs
The most important costs include costs for crews, periodic (dry-dockings) and day-to-day maintenance, repairs and insurance.
Voyage costs
Voyage costs mainly consist of fuel consumption and port dues. In the case of vessels in the charter market, the contracting party pays all the voyage costs.
Non-recurring costs
Naturally, a shipping company can have non-recurring costs. One example of such costs is damage to a vessel. This can usually be limited via insurance.
Freight rates for time-chartered vessels
The cost of chartering a vessel from another shipowner.
Capital costs
Depreciation and financial costs can vary considerably depending on the company’s capital structure and debt equity ratio. Here, too, timing is crucial when it comes to purchasing vessels. Ship prices have a large impact on a vessel’s capital costs and thus the shipping company’s profitability over a long period of time.
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