Indication
Meaning
An indication is a non-binding signal of the rate or terms a party might accept, used to test the market before firm offers are made.
Also written as Indicative rate, Indicate
Indication explained
Owners and charterers indicate levels to see whether a deal is possible, for example “owners indicate WS 55”. Indications are not offers and can be withdrawn or changed freely.
Related terms
Firm offer
A firm offer is a binding offer open for acceptance for a set time; if the other side accepts in time and without changes, the deal is made.
Counter-offer
A counter-offer is a reply that changes the terms of an offer; it rejects the original offer and becomes a new offer the other side can accept.
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.