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You can do any of the following with Benchmark Estimates:
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Calculating Exposure Using a Benchmark EstimateYou can create a Benchmark Estimate to mark to market a Cargo contract when there is no $/ton index available but there are relevant $/day (TC) and bunker indices. If there were a published index in $/ton, you could do the following calculation to find the future value of your contract: Net P&L = (Market Freight Rate/Ton - Contract Freight Rate/Ton) * Contract Qty However, as there are only $/day and bunker indices, you can estimate the Net P&L of the contract arising from shifts in the prices of these indices using the benchmark calculation. Bunker Exposure
Bunker Exposure = (Fuel 1 Rate - Fuel 1 Market Rate) * Benchmark Fuel 1 consumption tons + (Fuel 2 Rate - Fuel 2 Market Rate) * Benchmark Fuel 2 consumption tons + ... TC ExposureThe TC exposure question is: What Freight Rate would you need to pay for someone’s vessel on the market to carry your cargo for you, given the forward bunker rate? The answer is: The owner of the vessel would have to earn the same TCE from transporting your cargo as the Time Charter rate on the same route. To use a Voyage Estimate to manually find that Freight Rate, you have to fix the TCE to be equal to the market rate (by selecting the TCE check box on the Estimate P&L panel and entering the value in the TCE field), and also change the bunker rates to the market bunker rates. Then use the freight rate that the Estimate will back-calculate in this formula to retrieve the Net P&L: Net P&L = (Market Freight rate/ton - Contract Freight rate/ton) * Contract Qty To get the TC exposure figure, use the following formula: TC Exposure = Net P&L - Bunker Exposure Multi-Cargo Benchmark EstimateWith configuration flag CFGEnableMultiCargoBenchmarkEstimates, multiple Cargoes can be added to a Benchmark Estimate and scheduled on a voyage. The TCE and Bunker price from the multi-cargo Benchmark Estimate are used for the M2M valuation the same way it is used for the standard Benchmark Estimate. The bunker tonnage and the days are prorated out to the Cargoes based on the CP quantities. Cargoes created from a multi-cargo Benchmark Estimate are linked by a Benchmark Link ID field on the Cargo. Linked Cargoes
Linking a Benchmark Estimate and a CargoThe following workflow describes how a trader can create a Cargo using a Voyage Estimate and link them so that the Mark-to-Market of the Cargo is using that Estimate.
When a voyage with multiple Cargoes is scheduled, all linked Cargoes are pulled into the voyage. Creating an Estimate from a Cargo-Linked BenchmarkYou can create an Estimate from a Cargo based on the linked Benchmark Estimate:
Changing a Benchmark Estimate Itinerary to Match a CargoUsing the Trading Profile, you can dynamically change a Benchmark Estimate Itinerary according to the Cargo and use it in the exposure calculation. Follow these steps:
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