Flat rate
Meaning
The flat rate is the Worldscale reference freight in US dollars per tonne for a specific route, equal to WS 100, published once a year.
Also written as Worldscale flat rate, WS 100
Flat rate explained
Flat rates reflect each route's distance, port costs and canal dues, calculated for a notional standard tanker. They are reset every year, so the same WS level can mean a different dollar freight from one year to the next.
When a voyage has extra ports or a deviation, the Worldscale schedule also gives the rates and allowances to add.
Related terms
Worldscale
Worldscale is the index used to price tanker freight: a route's flat rate is WS 100, and fixtures are agreed as a percentage of it, such as WS 60.
Freight
Freight is the payment a charterer makes to the owner for carrying cargo under a voyage charter, quoted per tonne, as a lumpsum or in Worldscale.