Excerpt from Time-Charter Rates
The conclusion was also reached at the time that)in general,normal costs,2 more than any other factor,dominated the determination of time charter rates. The relationship between normal costs and time-charter rates was found to be stronger the longer the duration of the charter agreement. With the changes in technology in the tankship industry and the size composition of the operating fleet that we are witnessing, these relationships are expected to be even stronger. Therefore, the structure of rates during the period of 1959 to 1966 should exhibit greater variation than it did in the past.
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