Worldscale

Summary of Worldscale

A schedule, published semiannually on January 1 and July 1 as the Worldwide Tanker Nominal Freight Scale, which lists all world petroleum ports and a nominal freight rate for the movement of petroleum products between any two ports. The nominal rate listed between any two ports is known as worldscaleflat or world scale 100, and all tanker rates are quoted as a percentage of the world scale rate. For example, the world scale 100 rate from Kuwait to Rotterdam might be $15 per ton, and a vessel fixed (i.e., chartered) to make that run at $12 per ton, the fixture would be reported as world scale 80, which is to say 80 percent (12/15) of the nominal rate. All world scale rates are based upon movement of a fully loaded vessel of 19,500 long tons from loading port to discharging port and back to loading port without regard to geographical rotation. Certain other factors, such as fuel consumption, summer draft in salt water, and average speed, are used to calculate the standard vessel upon which the nominal rate is predicated.

Originally, worldscale rates were quoted in both U.S. dollars and pounds sterling; from January 1, 1972, all rates are quoted in dollars only. Worldscale replaces the International Tanker Nominal Freight Scale issued in London and the American Tanker Rate Schedule issued in New York.

Worldscale is published by Worldscale Association, with offices in New York and London.

(Main Author: William J. Miller)