IMOS - Freight Matrix

Requires the Trading & Risk module. You must have the Freight Matrix Module Right selected, under Quick Links in Trading.

The Freight Matrix form enables you to both compare any number of vessels against a benchmark vessel, across a matrix of estimates, to determine each vessel's appropriate Ratio % (correlation) value, and across a range of target TCEs and bunker prices to see how the delta against the benchmark will change with market fluctuations.

The workflow is as follows:

Adding an Estimate

1. Click Add Estimates.

2. Click Search.

3. Select an estimate from the list, then select OK.

5. Select a vessel.

6. Add another vessel to your comparison.

7. Review the bunker fuel type displayed for each vessel.

8. Type a bunker price.

9. Click Calculate.

10. Click the bottom right tabs to assess each estimate in the calculation.

11. Click the Save button to save this vessel calculation.

Associating Estimates with a Matrix

If Freight Matrix is enabled, at the bottom of Estimate columns, a Matrix field appears.

A Matrix is a collection of Estimates to be used in Freight Matrix calculations.

To associate an Estimate with a Matrix, do one of the following:

• Enter the name of a new Matrix and then click outside of the Matrix field. When prompted, click Yes. Then, save the Estimate.

• Select an existing Matrix from the drop-down menu. Then, save the Estimate.

Running Freight Matrix

To access the Freight Matrix form, do one of the following:

• On the main menu

  

  , under Trading, select Freight Matrix.

• In the Trading quick links, select Freight Matrix.

• On the Estimate column menu ..., select Freight Matrix.

Running a calculation

1. Select a Matrix of Estimates, against which you want to value vessels.

2. In the Vessel grid:

   1. In the first row, add the benchmark vessel.

   2. In subsequent rows, add the vessel(s) you want to compare with the benchmark vessel.

   3. Ballast and Laden Speeds (Bal/Lad Spd) automatically populate based on the Vessel Consumption tab, but you can edit them.

      • If the Vessel Type has Restrict Speeds selected, you can select available speeds from a drop-down menu.

3. Optionally, in the Component grid:

   1. Enter Hire and Bunkers Rates to use in TCE calculation.

   2. For each Rate, select a calculation Method:

      • Flat Rate: Applies the Rate entered to all Estimates.

      • Weighted: Applies each Estimate's Ratio% to the Rate entered.

4. Select Calculate. Results populate on the right side of the form.

   • Ratio % = Vessel TCE / Benchmark Vessel TCE

   • The bottom rows show Days, TCE, and Ratio % averaged across all Estimates in the Matrix.

Viewing the forward analysis

1. Navigate to the Forward Analysis tab in the results form.

2. Select one of the vessel names shown above the results form. Then, you’ll be able to view an assessment across a set of estimates and a range of forward prices for your chosen vessel.

3. If you want to see how a specific freight rate would be calculated given forward market data and conditions for additional vessels, add them to the Vessel grid and run the calculation again.

   

The rows shown for each estimate ID are:

• Freight Rate ($/MT): shows the resulting Freight Rate for that estimate ID in that period, given the forward TC and Bunker market prices

• Bunker Expenses: shows the resulting Bunker Expenses for that estimate ID in that period given, the forward Bunker market prices

• Hire Expenses: shows the resulting Hire Expenses for that estimate ID in the period, given the forward TC market price

• TCE (Market): shows the TC Market price for the given period (pulled from Market Data and associated with the Route populated for the TCE Target Component)

• VC In MTM: shows the difference between the calculated Freight Rate and the equivalent VC Route market rate for that period (this row will only be displayed if there is a VC Route component populated)

• Emissions Exp: shows the CO2 emissions expenses (consumption multiplied by the CO2 factor)

Applying Ratio % to a Time Charter

After running Freight Matrix, to apply a vessel's Ratio % to a Time Charter, on the TC In or TC Out Exposure tab, enter the value in the Vessel Type Correlation field.

Freight Matrix Logic

The master freight calculation that Freight Matrix uses is as follows:

Freight Rate = ((TCE * Voyage Days) + Bunker Expenses + Port Expenses + Misc Expenses + Est Despatch - Misc Revenue - Est Demurrage)/CP Qty