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Saturday, October 20, 2018


On the whole there will only be small downward changes in the 2002 Worldscale Flat rates compared to those for 2001.

The reason for this is only a small reduction (USD 6.5) in the world wide average price for bunker fuel used in the 2002 Worldscale Schedule, and a fairly stable US Dollar. Most changes will be in the -2% to 0% range with only a few marginal increases.

The worldwide average price for bunker fuel (380 cst) in the period 1st October 2000 to 30th September 2001 is USD 143.25, and this is the assumption upon which the 2002 WS Flat rates are based, compared with USD 149.75 for the 2001 Schedule. We have advised members to consider using exchange rate and bunker price adjustment clauses in charter parties, or hedging in the forward markets, if they wish to reduce their exposure to the fluctuations of the exchange rates and bunker market. However, this incurs a cost and of course also the risk that the exchange rates and bunker market can turn in a positive direction.

For instance, the Ras Tanura to Yokohama Flat rate will go down by 2.3%, whereas the Sullom Voe to Rotterdam Flat rate will be reduced by 0.3%. Ras Tanura to Rotterdam via Cape will go down by 1.7%, Ras Tanura to Loop via Cape down 1.7%. London to Rotterdam will go up by 0.9%.

The Worldscale Schedule for 2002 will be issued mid-December and will take effect on 1st January 2002. A notice indicating some of the changes will be issued mid-November.

Contact: Kristian R. Fuglesang