GlossaryEN1 min readUpdated: Aug 22, 2026

Time Charter Equivalent (TCE)

When the market reports that a VLCC is earning around USD 140,000 a day on the Oman–China run, the figure quoted is a time charter equivalent.

Quick Answer

Last updated: 22 August 2026

Source: Frachtportal-News «Hormus bleibt Problemzone: China baut seine Ölroute um» (19.08.2026)

Category

Logistics Concept

Reading time

1 min

Words

132

Mentioned in

–

Definition & Explanation

When the market reports that a VLCC is earning around USD 140,000 a day on the Oman–China run, the figure quoted is a time charter equivalent. TCE converts the revenue of a voyage charter into a daily earnings figure: voyage-related costs – mainly bunkers, port dues and canal tolls – are deducted from gross voyage revenue, and the balance is divided by the number of voyage days. This makes voyage charters and time charters directly comparable despite their very different contractual logic, and shows owners which route actually pays best. In tanker and dry bulk shipping, TCE is the key earnings metric and is published daily by brokers and freight indices. Not to be confused with the freight rate, which states only the gross price per tonne or unit and ignores costs.