If you are new to chartering, TCE is the first number to understand. Time Charter Equivalent expresses what a voyage earns per day after voyage costs, so you can compare a short, cheap voyage with a long, lucrative one on equal terms.
Why TCE matters
Freight rates alone are misleading: a high lumpsum on a long ballast leg can earn less per day than a modest rate on a quick turn. TCE strips away those differences and reduces every option to one comparable daily figure.
For the formula and the inputs people get wrong, see our guide on calculating TCE accurately.