One cost stack per route
Every component between origin and destination, from freight and insurance to duties, losses and financing, is written down once and agreed with the desk.
Commercial & trading analytics
Arbitrage spread modeling
A cargo is worth moving only if the price at the destination beats the price at origin by more than everything it costs to get there. We build a live model of that calculation for each route your desk trades, combining regional price indexes, current freight rates, tariff and duty differences, and quality adjustments such as heating value, so traders can see which arbitrage windows are open and how close the rest are.
Typical first version
6 – 10 weeks
Stated as a range. The two-week assessment narrows it.
The problem
Where it hurts today
- Arbitrage is worked out in a trader’s own spreadsheet, with freight and tariffs typed in by hand.
- Each desk uses slightly different assumptions, so two people can price the same route differently.
- Windows open and close faster than the spreadsheet is updated.
Data we bring together
- Regional price assessments and exchange prices
- Freight rates by route and vessel size
- Tariffs, duties and port costs
- Quality specs: heating value, API gravity, sulphur
- Insurance, losses and financing costs
- Currency rates
How Azico builds it
Four stages, each one usable on its own
Live inputs
Prices, freight and currencies refresh automatically from the feeds you subscribe to, with the time of each update shown.
Quality normalisation
Cargoes are compared on a like-for-like basis, adjusting for heating value, gravity or impurity against each market’s benchmark.
Windows and sensitivities
For each route the model shows the net spread, the break-even freight rate and how far each input can move before the trade stops working.
What your team sees
- +Route matrix: net spread for every origin and destination
- +Break-even freight and tariff for each route
- +History of when each window was open
- +Sensitivity to price, freight and currency moves
Questions it answers
- “Is the US Gulf to Northwest Europe route open today, and by how much?”
- “What freight rate would close this window?”
- “Which route has been profitable most often this quarter?”
What we need from you
- The price and freight feeds your desk uses
- Your current arbitrage spreadsheet or method
- Tariff and cost assumptions by route
- A trader to validate the first results
Commercial & trading analytics
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Azico Analytics is a Bangalore-based team of experienced data professionals. Share how your data is managed today, how your reports are produced and the challenges you face. We will assess your requirements objectively and set out where we can add value, with a practical approach tailored to your business.