Bulk Shipment Profitability Calculator
Estimate margin per MT and total profit on a bulk cargo shipment, including freight, quality penalties, inspection, finance and insurance cost, plus breakeven sale price.
Overview & methodology
Estimating bulk shipment margin
Profitability on a bulk cargo trade depends on more than the spread between purchase and sale price. Freight, quality penalties against contract specification, load-port inspection fees, insurance and other handling costs all erode the margin per tonne. Because bulk cargoes are typically financed for weeks between purchase and final payment, the cost of working capital over the voyage and settlement period is a material line item that is easy to overlook.
This calculator rolls purchase cost, freight, quality penalties, inspection, insurance, other costs and finance cost (based on working-capital days and an annual finance rate) into a total landed cost, then compares it to expected sale revenue to derive margin per MT, total margin, margin percentage and the breakeven sale price at which the trade covers all costs.
Frequently asked questions
How do I calculate margin per tonne on a bulk cargo?
Start from the sale price (FOB or CFR), deduct purchase cost, ocean freight, quality penalties, inspection, finance cost over the working-capital days, insurance and other trade costs. The residual is margin per MT; multiply by the cargo quantity for the shipment result.