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In the most general sense, a ship is an investment that is to be operated in such a manner that the investors’ expectations with respect to returns are met. A freight rate must be obtained so that all expenses are covered, with a remainder sufficient for the returns on investment. In analysis of the economic merit of a shipping project, this rate is often referred to as the required freight rate. Actual freight rates are set by market conditions and inevitably fluctuate during the life of a ship. The closest approximation to free-market freight rates is found in the case ...(100 of 22970 words)