Annuity Loan

Annuity loan means that you pay the same instalment amount, principal and interest until the loan has been fully repaid (provided that the interest rate remains unchanged). As the loan is repaid, the principal payments constitute a larger share of the total amount.

The debt service per day (interest and loan repayment amount per day) for an annuity loan is … Read the rest

Bareboat charter

Bareboat charter is an arrangement for the chartering or hiring of a ship whereby no crew or provisions are included as part of the agreement. The charterer provides crew, bunkers, and pays all operating costs.


A person or company who hires a ship.


A contract between a shipowner and an owner of goods by which part or all of a ship is leased for a voyage or stated time.

Classification society

A non-governmental organization that establishes and maintains technical standards for the construction and operation of ships and offshore structures.


Loan Covenants are restrictions that a lenders put on borrowers to limit actions af borrowers.  Typical covenants of a ship financing agreement would be minimum value clauses (Loan To Value) and minimum cash balance required.

Deadweight tonnage (DWT)

A measure of how much mass a ship can carry. It does not include the weight of the ship itself. DWT is the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew.

Debt Service Break-Even

Debt Service Break-Even is calculated by taking the debt service per day and adding the OPEX per day, including provisions for periodical dry docking (DD)/special survey (SS). If the debt service per day is USD6,780, the OPEX (excluding drydocking) is USD5,800 per day, and the estimated cost of the next drydocking is USD250,000 with 887 earnings days (30 months adjusted … Read the rest