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Break-Even Freight Rate

Contents

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Minimum USD/t that makes a voyage cash-positive: (voyage costs + OPEX × days) / B/L tonnes.

Formula

$$ R_\text{BE} = \frac{C_\text{voyage} + \text{OPEX} \cdot t}{Q} $$

Symbol legend

SymbolMeaningUnitSource
$C_\text{voyage}$Voyage direct costsUSDDA / bunker bill
$OPEX$Daily OPEXUSD/dOPEX calc
$t$Round voyage daysdschedule
$Q$Cargo tonnestBL

Sources

  • Stopford - Maritime Economics.