What are average freight rates assessment?

Commissioned originally by one of the oil majors as a sophisticated indicator of freighting values for its affiliated companies, AFRA results have been published by the London Tanker Brokers' Panel continuously since 1954.

They are unique in being the only assessments of their kind to be recognised by taxation authorities as an acceptable method of charging freight between affiliated companies of multi-national groups. AFRA results are also used by oil traders and government agencies to assess the freight element in various types of oil sale agreements.

AFRA results are published on the first business day of each month and cover five deadweight groups:

• Medium range

25,000 - 44,999 (long) tons dw

• Large range 1

45,000 - 79,999 (long) tons dw

• Large range 2

80,000 - 159,999 (long) tons dw

• VLCC

160,000 - 319,999 (long) tons dw

• ULCC

320,000 - 549,999 (long) tons dw

In each of the five groups, tonnage is divided into three categories:

• Long term charters
• Short term charters
• Single voyage charters

Each month, AFRA subscribers receive the average freight rate assessments expressed in new Worldscale points. Also available is a breakdown of the monthly assessment; this shows average rates for the three charter categories in the five deadweight groups in US dollars per metric ton, converted to a Worldscale equivalent. A further option is an assessment of the Worldscale average single voyage rate for clean vessels for GP, MR and LR1 size ranges.

AFRA results are available on a subscription basis only and all subscribers are asked to sign an undertaking that the results will not be disclosed to any other parties.

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PS - also take a look at www.fairtran.com