The Vortexa Anywhere Freight Pricing model is designed to provide comprehensive and accurate freight prices that represent fair market value for a typical cargo size in a range of vessel classes on any global route, even those not traditionally assessed. The model integrates daily market dynamics with regional considerations to generate real-time, reliable pricing that is accessible via a user-friendly screen on our platform. This brief outlines the general methodology behind our pricing model.

Key Components and Data Inputs

Market Data:

At its core, our model utilises various sources of price related information, leveraging Vortexa’s extensive partner network, ensuring that our prices are based on fresh and relevant market data.

Cost Factors:

• Port and Canal Costs: Acquired from a combination of vendor data and market intelligence, we maintain an updated view of costs in all ports and canals impacting the final freight rates.
• Transit Duration: Calculated by Vortexa’s Voyage Calculator, providing accurate estimations of vessel travel time from port to port, either via or avoiding canals, as required by the user

Model Constraints:

Developed by our analysts, these constraints establish relative price bands for regions and vessel classes, enhancing the model’s accuracy relative to geographical market conditions.

Model Training and Outputs

The model employs a proprietary machine learning and human-in-the–loop algorithm that estimates the various factors impacting price formation:

• Global Uplift: Reflects overarching market conditions affecting freight rates worldwide.
• Vessel Class Uplifts: Differentiated by Atlantic and Pacific basins, reflecting distinct vessel classifications and regional behaviours.
• Regional Uplifts: Assigned to both origin and destination regions, taking into account local market liquidity and dynamics.

Price Generation

The model automates the generation of daily freight prices using a formula that balances input costs and market conditions through the following steps:

1. Route Price Formulation: Combines the global, regional, and vessel class uplifts with the duration to compute the price in USD per ton.
2. Incorporating Costs: Adjusts for actual costs by adding fixed port and canal expenses, yielding a comprehensive freight rate specific to the port, any canal transits, vessel class and assumed cargo tonnage.

Conclusion

Our Anywhere Freight Pricing model synthesises global market data and regional specifics into a coherent, adaptive pricing tool. Continuous refinement ensures it remains a reliable resource for clients seeking to navigate the complex freight market landscape. For more details on leveraging our model, please connect with our support team.