Glossary

Bare Boat Rate

The daily rent the Charterer pays the Shipowner to use the vessel over a specified period of time. It is usually paid every 15th days in advance. It only includes capex. It does not include opex (technical management), crewing and voyage related items such as bunkers, port costs and agents.

Technical Management

The physical management and daily maintenance of the vessel in operation. Agreements for technical management can be made with and without crewing

Bunkers

Fuel used to run the main engine on commercial vessel. Also known as Fuel Oil (FO).

Time Charter Rate

The daily rent the charterer pays the shipowner to use the vessel over a specified period of time. It is usually paid every 15th day in advance and includes capex, opex (Technical Management) and crewing. It does not include voyage related items such as bunkers, port costs and agents.

Net TC Margin

Gross trading margin used to measure performance in Western Bulk. The Net TC Margin consists of voyage revenues less all voyage related costs such as tonnage costs, bunker costs, port costs, insurance, etc. The margin excludes SG&A and bonuses.

FFA

Forward Freight Agreement. A derivate contract that can be used to hedge against future movements in the freight rates or time charter rates. The contract settles against the relevant freight index published by the Baltic Exchange, and is typically done against the average time charter routes for Capesize, Panamax or Supramax vessels. An FFA contract can be done directly with a counterpart (over-the-counter, OTC) or through a Clearing House/Exchange (e.g. NOS and LCH). The vast majority of FFAs are cleared.

Off-hire

A period when the vessel is unable to earn hire.

Handymax

Dry Bulk vessel type which is geared with cranes, between 40-50,000 dwt and built before 2000.

Handysize

Dry Bulk vessel type which is geared with cranes and between 20-40,000 dwt.

Panamax

Dry Bulk vessel type which is not geared and between 65-85,000 dwt. Largest bulk vessel which can pass through the Panama Canal.

Supramax

Dry Bulk vessel type which is geared with cranes, between 50-63,000 dwt and built after 2000. Can pass through both the Panama Canal and Suez Canal.

Western Bulk

Email and IT-related Fraud Alert

There is an increasing risk of attempted fraud and other security threats via email. In particular, Western Bulk has noticed an increase of fraudulent requests to change bank account details of suppliers/creditors, in an attempt to redirect payments to criminals and not to the intended recipient. We encourage everyone to be vigilant and learn to detect fraudulent email instructions - seemingly legitimate emails may contain fraudulent information, this is not just a cybersecurity matter.

As a result, Western Bulk will treat any notice of bank account changes as suspicious. Urgent pressure to effect payment as soon as possible without verification of the changes will also be treated as suspicious.

Please note that Western Bulk would not inform of changes to bank account details by email notice alone. In the unlikely event that we need to change a beneficiary name or our other bank account details, we would personally contact our supplier or customer in order to personally verify any change in details.

Similarly, we ask that all our suppliers and creditors:

1. first notify us in writing and
2. personally verify any change in bank details or change in beneficiary in any payment advice to Western Bulk.

In summary, notices of bank account changes will require voice confirmation from your Western Bulk contact, either by telephone or face to face, before payment can be authorised so please make sure to notify any changes in good time.