Tanker Chartering – Ametheus
We offer flexible and secure vessel chartering services for crude oil, LNG, LPG, and petrochemical transportation. Our fleet access, combined with state-of-the-art technology and expert market intelligence, ensures efficient, safe, and cost-effective maritime logistics.
Our experienced shipping brokers and specialist analysts provide deep insights into market dynamics, bunker costs, freight rates, and regulatory requirements — enabling smarter fixture decisions across all major commodity segments.
Tanker Chartering
Ametheus charters ships to reliably distribute crude oil, refined petroleum products, and pressurised gases to refineries and customers worldwide. Logistics and distribution form the core of our operations — moving crude to refineries and delivering products where demand exists.
We maintain strong relationships with leading ship owners and brokers globally, giving us access to high-quality vessels for spot, voyage, or time charters.
Loadability in Oil Tankers
- CPP (Clean Petroleum Products): Refined products such as gasoline, jet fuel, diesel, naphtha, and kerosene. These require coated, clean tankers with segregation systems to prevent contamination.
- DPP (Dirty Petroleum Products): Unrefined or residual products such as crude oil, fuel oil, and asphalt. These are carried in robust tankers designed for heavier, more viscous cargoes.
Tanker size is primarily determined by deadweight tonnage (DWT) — the vessel’s carrying capacity — along with length, beam, and draft restrictions for specific routes and ports.
Types of Tanker Vessels
Tankers are specialized ships designed for the safe transportation of liquid cargoes, primarily petroleum products, crude oil, and gases. They are classified by cargo type and size (DWT).
1. Crude (DPP) Oil Tankers
These vessels transport large volumes of unrefined crude oil over long distances. Larger classes deliver significant economies of scale on major global trade routes.
- Panamax (sometimes applied to tankers): 60,000–80,000 DWT. Designed to fit the original Panama Canal dimensions; suitable for certain crude and product trades in restricted waterways.
- Aframax (often overlaps with LR2): 80,000–120,000 DWT (length approx. 245–260 m). A highly versatile tanker for medium-to-long haul routes. Its moderate size and draft provide excellent port flexibility. Primarily used for crude oil and dirty products; coated versions (commonly called LR2) can switch between dirty and clean refined petroleum products.
- Suezmax: 120,000–200,000 DWT (length approx. 274–285 m). Positioned between Aframax and VLCCs. Optimized for full-loaded passage through the Suez Canal; ideal for routes between the Middle East, Europe, and beyond.
- VLCC (Very Large Crude Carrier): 200,000–320,000 DWT (length approx. 330–340 m). The workhorse for long-haul intercontinental crude transport (e.g., Middle East to Asia or Europe).
- ULCC (Ultra Large Crude Carrier): 320,000–550,000+ DWT (length approx. 380–415 m). The largest crude carriers, used for massive-volume shipments on deep-water routes with suitable port infrastructure.
2. CPP (Clean Petroleum Products) Product Tankers
These vessels carry refined petroleum products and feature coated tanks with segregation systems for multiple grades.
- Handysize: 10,000–40,000 DWT. Ideal for short-haul, regional, and coastal deliveries with access to smaller ports.
- MR (Medium Range): 40,000–55,000 DWT (sometimes up to ~60,000 DWT). Commonly used for inter-regional and transatlantic trades.
- LR1 (Long Range 1): 55,000–80,000 DWT. Suitable for larger-volume refined product shipments over extended distances.
- LR2 (Long Range 2): 80,000–160,000 DWT. The largest product tankers, optimized for high-volume, long-haul refined cargoes.
3. Specialized Gas and Other Tankers
- LNG Carriers (Liquefied Natural Gas): Equipped with cryogenic containment systems (cooled to -162°C). Common capacities range from 125,000–266,000+ cubic meters. Used for long-distance natural gas transport.
- LPG Carriers (Liquefied Petroleum Gas): Designed for propane, butane, and ammonia. Types include fully pressurized (small/short-haul), semi-pressurized/refrigerated (medium), and fully refrigerated (large/long-haul, typically up to 80,000–90,000 m³ for VLGCs).
- Shuttle Tankers: Specialized for offshore-to-onshore crude transport from production platforms or floating storage (typically 80,000–150,000 DWT, often with dynamic positioning).
- Tank Barges: Non-self-propelled or pushed units for coastal, river, and inland transport of oil products or crude in restricted waters.
Types of Charter Agreements
Voyage Charter (VC)
The vessel is hired for a single voyage between specific ports. The shipowner covers operating costs and assumes most risks. Freight is typically paid on a Worldscale basis or lumpsum.
Time Charter (TC)
The charterer hires the vessel for a fixed period and controls commercial operations (itinerary, bunkers, ports). The owner handles technical management and crew. Hire is paid at a daily rate.
Bareboat Charter (Demise Charter)
The charterer gains full control of the vessel (acts as disponent owner) and is responsible for crewing, maintenance, insurance, and all operational costs. Commonly used for long-term arrangements.
Negotiations & Worldscale
Tanker fixture negotiations are generally faster than dry cargo but focus on the same core elements: freight rate, cargo quantity, laydays, demurrage, and loading/discharge ports.
Most oil industry fixtures use the Worldscale system — a standardized freight scale based on a notional 75,000 DWT tanker. Rates are expressed as a percentage of the base (e.g., Worldscale 100, WS 175, or WS 75).
Payment Terms
- Voyage Charter Payment Terms
(Where the owner provides the vessel, crew, and covers voyage costs)
| Payment Term | Short Code | Description |
| Freight Prepaid | FPP | Full freight is paid before cargo loading. |
| Freight Payable on Discharge | FPD | Payment is due after cargo discharge. |
| Freight Payable at Sight | FPS | Payment is made upon presenting shipping documents. |
| Before Breaking Bulk | BBB | Full freight must be paid before unloading starts. |
| Cash Against Documents | CAD | Payment is made upon presentation of documents (B/L, Invoice). |
| Letter of Credit (Sight/Usance) | SLC / ULC-30/60/90 | Sight LC = immediate payment; Usance LC allows 30/60/90-day delay. |
| Net Payment Terms (Post-Discharge) | NET-30 / NET-60 / NET-90 | Payment is due 30/60/90 days after discharge. |
| Payment Against Sales Proceeds | PASP | Payment is made only after the buyer sells the cargo. |
✅ Best for charterers (buyers): FPD, NET-90, ULC-90, PASP (delays payment, improves cash flow).
⚠️ Risk for shipowners: Delayed payments, exposure to charterer’s financial stability.
- Time Charter Payment Terms
(Where the charterer hires the vessel for a period, pays daily hire, and covers bunker & port costs)
| Payment Term | Short Code | Description |
| Hire Payable in Advance | HPA | Charterer must pay hire before vessel delivery or for each period upfront. |
| Hire Payable in Arrears | HPA-15 / HPA-30 | Hire is paid 15 or 30 days after the hire period. |
| Hire Payment Against Invoice | HPI | Payment is due after receiving an invoice (e.g., every 15/30 days). |
| Bank Guarantee Secured Hire | BGH | A bank guarantee ensures timely payment. |
| Letter of Credit for Hire Payments | LCH | Hire is secured via an LC (sight/usance). |
✅ Best for charterers: HPA-30, HPI, LCH (deferred hire payments).
⚠️ Risk for owners: Late payments, risk of unpaid hire.
- Bareboat Charter Payment Terms
(Where the charterer takes full control of the vessel, pays all costs, and hires it long-term)
| Payment Term | Short Code | Description |
| Lease Payment in Advance | LPA | Payment is made before vessel delivery. |
| Lease Payable in Arrears | LPA-30 / LPA-90 | Payment is made every 30/90 days after use. |
| Balloon Payment at Lease End | BPLE | Large payment due at the end of the lease term. |
✅ Best for charterers: LPA-90, BPLE (longer payment flexibility).
⚠️ Risk for owners: Exposure to non-payment if the charterer defaults.
Conclusion:
Best Payment Terms for Ship Owner
BBB (Before Breaking Bulk) Freight Payment: This means that the freight (transportation cost) must be paid before any cargo is discharged at the destination port. It ensures the shipowner receives payment before the cargo is released to the consignee.
Best Payment Terms for Buyers (Charterers)
- Voyage Charter: NET-90, PASP, ULC-90
- Time Charter: HPA-30, LCH
- Bareboat Charter: LPA-90, BPLE
Ready to charter? Contact our team at [email protected] [info(at)ametheus(dot)com] and cc at [email protected], [email protected] | call at t+91-9999999538, +91-9999099538 (WA) +91-9999156157 (WA) for competitive fixtures, market updates, and expert support.
