If gross trade revenue is 1,000,000, directly related trade costs are 150,000, and employment days are 40, what is the Time Charter Equivalent per day?

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Multiple Choice

If gross trade revenue is 1,000,000, directly related trade costs are 150,000, and employment days are 40, what is the Time Charter Equivalent per day?

Explanation:
Time Charter Equivalent per day measures how much income a ship earns per day after subtracting voyage-related costs, spreading the net revenue over the days of employment. Start with gross trade revenue of 1,000,000 and subtract directly related trade costs of 150,000 to get net revenue of 850,000. Then divide by the number of employment days (40): 850,000 ÷ 40 = 21,250 per day. So the TCE per day is 21,250.

Time Charter Equivalent per day measures how much income a ship earns per day after subtracting voyage-related costs, spreading the net revenue over the days of employment. Start with gross trade revenue of 1,000,000 and subtract directly related trade costs of 150,000 to get net revenue of 850,000. Then divide by the number of employment days (40): 850,000 ÷ 40 = 21,250 per day. So the TCE per day is 21,250.

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