The other main element of trading physical oil is the freighting (shipping in any other language) of the oil to its final destination. The cost of a shipping transaction is in effect the rate for any given charter (the hire of a vessel). This is determined using a tried and trusted method: Worldscale Freight Rates.

Worldscale (WS) (for more information see is a commercial organisation with its most recent incarnation going back to 1989. The business is linked to the concept of a uniform daily freight rate for a voyage independent of the destination or origin of the cargo and in any vessel. WS publishes a list of ‘flat rates’ before the beginning of each year that essentially dictates the cost of shipping oil from ...

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