Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Voyage charters

In a voyage charter contract, the charterer hires the vessel to transport a specific agreed-upon cargo for a single voyage which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The charter party generally has a minimum amount of cargo. The charterer is liable for any short loading of cargo or “dead” freight. A voyage charter contract generally has standard payment terms of 95% freight paid within three days after completion of loading. A voyage charter contract generally has a “demurrage” or “despatch” clause. As per this clause, the charterer reimburses the Company for any potential delays exceeding the allowed laytime at the ports visited which is recorded as demurrage revenue. Conversely, the charterer is given credit if the loading/discharging activities happen within the allowed laytime known as despatch, resulting in a reduction in revenue.

Voyage charter contracts are considered service contracts which fall under the provisions of ASC 606, Revenue Recognition, because the Company, as the shipowner, retains the control over the operations of the vessel (e.g., directing the routes taken or the vessel’s speed). Voyage charter contracts generally have variable consideration in the form of demurrage or despatch. The amount of revenue earned as demurrage, net of despatch incurred, for the years ended December 31, 2023, 2022 and 2021 was $7.7 million, $33.7 million and $20.7 million, respectively.

The following table shows the revenues earned from time charters and voyage charters for the years ended December 31, 2023, 2022 and 2021:

        

	Year Ended
	December 31, 2023		December 31, 2022		December 31, 2021
Time charters(1)	$	207,254	$	343,084	$	299,614
Voyage charters	186,545		376,763		294,924
	$	393,799	$	719,847	$	594,538

(1)See Note 12. Leases, for additional information on revenues earned from time charters.

Contract costs

In a voyage charter contract, the Company bears all voyage related costs such as fuel costs, port charges and canal tolls. Costs directly related to a voyage charter contract that are incurred prior to commencement of loading cargo, primarily bunkers, are recognized as an asset and expensed on a straight-line basis as the related performance obligation is satisfied. As of December 31, 2023 and 2022, the Company recorded $0.4 million and $0.5 million, respectively, of contract fulfillment costs in Other current assets in the Consolidated Balance Sheets.