Time Charter Equivalent definition
Time Charter Equivalent means an amount calculated by taking voyage revenues, subtracting voyage expense and then dividing the entire total by the total voyage duration in days reflecting delivery and redelivery points per customs of the trade. The time charter equivalent is calculated as:
Examples of Time Charter Equivalent in a sentence
See Appendix 1 for reconciliations of Time Charter Equivalent Revenues to Shipping Revenues.
A Time Charter Equivalent rate (“TCE Rate”) is calculated by dividing Net Voyage Revenue by vessel operating days.
In the dry bulk industry, it is customary to report revenue on a net basis, also known as a Time Charter Equivalent basis (“TCE Basis”), to enable comparability between differing contract structures.