Why do Large Bunker Profit or Loss Shows in the Voyage Estimate for Time Charter (TC) In, Out or Both?

Owned by Former user (Deleted)
Last updated: Oct 17, 2016
2 min read

Question

Why do the preliminary and/or adjusted estimate show a large profit and/or loss related either to a time charter (TC) in, out or both?

Answer

The reason depends on whether the voyage is a preliminary or adjusted voyage as well if the voyage is a time charter in or out. To establish the cause and what resolution to apply, check the Audit Log functionality to check when the prices of the time charter (TC) contracts were inserted or changed:

Preliminary

Large Profit

Large Loss

TC Out (Charterer)

  • The delivery price in the TC contract is entered correctly.
  • The price (FIFO) from the previous voyage is too low or zero at the time of freezing the voyage.

To recitfy:

  1. Ensure the current price at the start of the voyage is correct.
  2. Unfreeze and refreeze the voyage.
    Note: Unfreezing may potentially update other values in the preliminary calculation as it will reflect the voyage at the time of refreezing.
  • The delivery price in the TC contract is entered incorrectly (normally zero) at the time of freezing the voyage.
  • The price (FIFO) from the previous voyage is correct.

To recitfy:

  1. Ensure the current delivery price in the TC contract is correct.
  2. Unfreeze and refreeze the voyage.
    Note: Unfreezing may potentially update other values in the preliminary calculation as it will reflect the voyage at the time of refreezing.

TC In (Owner)

  • The redelivery price in the TC contract is entered correctly.
  • The price (FIFO) at the end of the voyage is too low or zero at the time of freezing the voyage.

To rectify:

  1. Ensure the current price at the end of the voyage is correct.
  2. Unfreeze and refreeze the voyage.
    Note: Unfreezing may potentially update other values in the preliminary calculation as it will reflect the voyage at the time of refreezing.
  • The redelivery price in the TC contract is entered incorrectly (normally zero) at the time of freezing the voyage.
  • The price (FIFO) from the previous voyage is correct.

To recitfy:

  1. Ensure the current delivery price in the TC contract is correct.
  2. Unfreeze and refreeze the voyage.
    Note: Unfreezing may potentially update other values in the preliminary calculation as it will reflect the voyage at the time of refreezing.

Adjusted

Large Profit

Large Loss

TC Out (Charterer)

  • The delivery price in the TC contract is entered correctly.
  • The price (FIFO) from the previous voyage is too low or zero in the current voyage.

To rectify:

  • Ensure the current price at the start of the voyage is correct.
  • The delivery price in the TC contract is entered incorrectly (normally zero) in the current contract, while the price (FIFO) from the previous voyage is correct.

To recitfy:

  • Ensure the current delivery price in the TC contract is correct.

TC In (Owner)

  • The redelivery price in the TC contract is entered correctly.
  • The price (FIFO) at the end of the voyage is too low or zero in the current voyage.

To rectify:

  • Ensure the current price at the end of the voyage is correct.
  • The redelivery price in the TC contract is entered incorrectly (normally zero) in the current contract, while the price (FIFO) at the end of the voyage is correct.

To recitfy:

  • Ensure the current re delivery price in the TC contract is correct.