Freight TradingBulk commodity supply chains
Learning tool 01 · Freight price formation

Simplified Marginal Vessel Map

Increase East Coast South American cargo demand until local ships run out, then watch the market move through neighbouring and remote vessel-supply blocks.

Read how the marginal vessel shapes freight
Concept · The marginal ship sets the premium

Watch local supply run out.

East Coast South America is the target market. Cargo demand first uses local ships, then attracts progressively more expensive ballast supply from neighbouring regions.

Regional balanceFixed teaching regions · no live vessel data

East Coast South America has 8 cargoes and 6 local vessels. 2 vessels must ballast in from the fixed teaching supply regions. The map does not show live vessel positions.

Use the map controls to zoom. On a keyboard, focus the map and use the arrow keys to explore.

Required vessels8one per cargo
Local vessels6supply exhausted
Marginal vesselWest Africa2 imported vessels
Additional ballast cost$156,000per marginal vessel
Indicative freight increase$3.80/pmtmarginal supply premium
Stepped vessel supply curveHighlighted block sets the premium · not average fleet cost
Three-block regional vessel supply curveThe highlighted supply block is the price-setting marginal vessel region under the current assumptions. It is not the average cost of all available vessels.Local ECSA$0.00/pmtWest Africa$3.80/pmtPrice-setting blockIndian Ocean$6.55/pmtDemand: 8Freight premiumAvailable vessels
Answer explainedWhy does the result move?Open or close the model FAQ
In plain English

This model uses five fixed regions and three supply blocks. West Africa is eight ballast days from ECSA; the Indian Ocean is fourteen. Fuel burn, cargo size and opportunity-cost add-ons are fixed teaching assumptions rather than live vessel economics.

The rule behind itFreight premium = ballast fuel cost ÷ cargo tonnes + opportunity cost