Baltic Exchange launches new TCE earnings calculator to simplify freight and emissions analysis
LONDON: Baltic Exchange has launched a new Time Charter Equivalent (TCE) earnings calculator, designed to bring clarity and consistency to freight assessments in an increasingly complex market. The calculator builds on the Baltic’s long-standing TCE methodology, which has been in use since 2008.
Users can see the constituent parts of the standard calculation, including income lines, expenses, port and canal charges, helping ensure transparency and accurate benchmarking. This is particularly valuable as ships adapt to new trading patterns driven by geopolitical tensions and shifting global routes.
“Market participants have been asking for greater transparency and consistency in how freight earnings are compared. The new calculator builds directly on our established TCE benchmarks, turning a complex calculation into a clear, practical tool that reflects real-world trading conditions against the Baltic standard vessels and routes,” said Stephen Aitchison, Senior Freight Market Assessor at Baltic Exchange.
“This calculator provides useful output from a complicated set of variables into a normalised and comparable format, including those related to emissions regulation,” said Martin Crawford-Brunt, Emissions Lead at Baltic Exchange. “It allows users to assess their vessel against the trusted Baltic market standard, enabling them to understand the differential in $/mt or $/day.”
“The clear display of the many freight components supports better-informed commercial decisions as it allows users to test alternative speeds and consumptions by route,” added Crawford-Brunt. “It’s a practical tool for owners, charterers and brokers alike, to shows the potential commercial benefit of efficiency measures.”
The tool currently focuses on dry bulk carriers, oil tankers (crude and products), LNG and LPG carriers, reflecting the standardised Baltic routes for these sectors. It is designed to evolve, with future iterations expected to integrate complex emissions regulations and other operational variables.
“The goal is to provide a tool that improves the quality of conversation between freight buyers and sellers, enabling better decision-making and more accurate pricing,” said Crawford-Brunt. “This is an evolving tool, and we welcome feedback from users to help us refine and enhance its capabilities.”
The calculator complements other Baltic tools, including the FuelEU Maritime calculator and voyage cost estimators, enabling users to assess the impact of fuel choices, emissions compliance, and efficiency improvements in a fully integrated framework. By linking these tools, the Baltic provides a comprehensive suite for transparent freight and operational analysis across the market.
The new TCE earnings calculator represents a step forward in Baltic’s commitment to bringing clarity to freight markets, supporting the industry as it navigates increasing regulatory and operational complexity.