The Baltic Exchange has launched a new Time Charter Equivalent (TCE) earnings calculator, aimed at delivering greater clarity and consistency to freight assessments amid evolving global trade patterns and rising regulatory complexity. Building on the Baltic’s trusted TCE methodology introduced in 2008, the new tool offers market participants a clearer and more detailed view of the components that drive freight earnings.
The calculator allows users to view all constituent elements of the standard TCE calculation—including income lines, expenses, port charges, and canal fees—ensuring transparency and accurate benchmarking. This comes at a crucial time as vessel operators adapt to shifting routes influenced by geopolitical developments and changes in global trade flows.
“Market participants have been asking for greater transparency and consistency in how freight earnings are compared,” said Stephen Aitchison, Senior Freight Market Assessor at Baltic Exchange. “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.”
Highlighting the tool’s versatility, Martin Crawford-Brunt, Emissions Lead at the Baltic Exchange, noted that the calculator also incorporates variables linked to emissions regulations—an increasingly important factor in commercial decision-making. “It allows users to assess their vessel against the trusted Baltic market standard, enabling them to understand the differential in $/mt or $/day.”
Crawford-Brunt added that the interface allows users to test different operational scenarios such as alternative speeds and fuel consumptions, providing insights into potential efficiency gains. “It’s a practical tool for owners, charterers and brokers alike, showing the potential commercial benefit of efficiency measures.”
The current version covers dry bulk carriers, crude and product tankers, as well as LNG and LPG carriers, aligned with Baltic’s standardised routes. The Exchange plans to expand the tool further, incorporating advanced emissions regulations and other operational parameters in future updates.
“The goal is to improve the quality of conversation between freight buyers and sellers,” Crawford-Brunt said. “This is an evolving tool, and we welcome user feedback to refine and enhance its capabilities.”
The new calculator integrates seamlessly with other Baltic digital tools, including the FuelEU Maritime calculator and voyage cost estimators. Together, these tools create a comprehensive ecosystem for analysing freight, fuel choices, emissions compliance, and operational efficiency.
With this launch, the Baltic Exchange reinforces its commitment to transparency and innovation in freight markets, providing stakeholders with the tools needed to navigate an increasingly complex global shipping landscape.
