Use Case | Energy & Freight Traders | Optimise trading profitability with Anywhere Freight Pricing

Optimise trading profitability with instant freight price discovery

Freight price can make up to 60% of a cargo trade cost, making it one of the leading factors in trade profitability. With Vortexa's Anywhere Freight Pricing, instantly compare freight costs, across any vessel, for any route in the world.

Key user

Energy & freight traders

Issue

Limited access to freight pricing

Solution

Anywhere Freight Pricing

Impact

Optimise trade profitability

CHALLENGE

Freight price discovery in a time-critical market

Energy and freight traders encounter several challenges when they receive requests to buy cargo. This includes limited access and delay to pricing information, and the need to maintain discretion while evaluating market options.

For example, an energy trader with a 35kt cargo (costing 675 $/t FOB) in the Middle East Gulf (MEG) receives 3 bids:

East Africa (at 700$/t)
West Coast India (at 700 $/t)
Singapore (at 705 $/t)

The trader needs to quickly compare freight costs for potential destinations to determine deal viability and potential profit – all within minutes, without revealing their strategy to competitors.

SOLUTION

Instant freight pricing for anywhere in the world

To determine the most profitable option, the energy trader needs immediate freight price estimates for an MR2 tanker:

Fujairah [AE] → Dar Es Salaam [TZ] = 26 $/t
Fujairah [AE] → Kandla [IN] = 13 $/t
Fujairah [AE]→ Singapore [SG] = 24 $/t

Thankfully, Vortexa’s Anywhere Freight Pricing gives instant access to data driven insights and freight pricing for any route in the world. This allows traders to instantly compare freight costs and optimise their trading decisions.

IMPACT

Optimise profit margins and make faster decisions

With Anywhere Freight Pricing, the trader can instantly calculate the cost of selling and sending the cargo for each route:

Fujairah [AE] to Dar Es Salaam [TZ] CIF = 701 $/t, Profit Margin = -1$/t
Fujairah [AE] to Kandla [IN] CIF = 698 $/t, Profit Margin = 2 $/t
Fujairah [AE] TO Singapore [SG] CIF = 699 $/t, Profit Margin = 6 $/t

Result: By instantly accessing freight costs, the trader identifies Singapore as the most profitable option, securing a better margin while maintaining market discretion.