Cargo contracts are often marked to Benchmark estimates as a way of calculating exposure. Because there is no vessel attached to a cargo contract, a benchmark estimate provides a useful picture of any voyage associated with the cargo, as well as helping to fill out an expected total P&L from undertaking a contract.
At times, values on a benchmark estimate may differ from values on the Trade Details list. This is most likely for one of the following reasons:
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Freight rate
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Bunker values
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CP quantity
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Commission percentage
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Lifting options
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Pricing matrix (Benchmark estimates for use of exposure do not fully support pricing tables)
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Whether the initial estimate matches the benchmark estimate
When a cargo contract uses the Benchmark Estimate exposure method and a bunker exposure breakdown is defined, IMOS requires bunker symbols to be specified before the contract can be saved. To remove bunker exposure from the contract entirely, switch the exposure method to Manual instead of Benchmark Estimate.
Because the cargo contract is a contractual obligation, Trade Details list applies values from the cargo contract, superseding values in any benchmark estimate. For example, a cargo contract might have bunker prices at $200/MT, while the estimate has bunkers set at $400/MT. In this instance, bunker expenses use the cost of $200/MT resulting in different total bunker cost, a different total expense, and ultimately a different TCE.
In these instances, the easiest solution is to create a new estimate linking the cargo in question. After completing the estimate with applicable port expenses, miscellaneous expenses, and so on, the final value should match what appears on the Trade Details list.
At other times, this can still prove difficult. In these situations, using an Excel spreadsheet to manually calculate values is often the next easiest step. The following Excel spreadsheet contains plug-and-play values. Enter the details from the contract, such as CP quantity, freight rate, and bunker values. The TCE calculates automatically.
TCE = (Total revenue - Total expense)/Voyage days