Course 15 of 20 · Freight and Shipping Desk Academy

Physical Freight Hedging & Route Basis

Stage D, Curves, hedging and carbon cost. Level 7 of 10.

Mapping a physical freight position onto paper routes and managing the residual route, timing and vessel-class basis that remains after hedging.

121 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 12, Course 13, Course 14

Enrol or enquire See the 121 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 121 chapters

Open any module for its full chapter list, in teaching order.

M0 The Freight Position a Fixture Creates Ch 1-11
  1. Freight Exposure Belongs to a Ship, Not to a Cargo
  2. The Charterer Short of Tonnage and the Owner Long of Days
  3. From Firm Indication to Lifted Subjects: When the Risk Becomes Yours
  4. Open Days, Committed Days and Covered Days
  5. The Tonnage Ledger: Ships Down the Side, Months Across the Top
  6. Building One Vessel's Row Across a Quarter
  7. The Operator Who Is Long and Short the Same Trade
  8. The Cargo Book That Creates a Tonnage Shortfall
  9. What an Unfixed Ship Costs While the Market Softens
  10. A Fixed Ship Against a Fixed Cargo Is Still an Open Trade
  11. How This Material Moves From Fixture to Residual
M1 Paper Routes Read as Hedging Instruments Ch 12-22
  1. What a Route Specification Promises and What It Omits
  2. The Described Ship Inside a Voyage Route
  3. The Named Port Pair and the Range Around It
  4. The Timecharter Route and the Round Voyage It Assumes
  5. The Basket Average and the Ship It Declines to Describe
  6. Dollars per Tonne Against Dollars per Day
  7. Which Routes a Dry Cargo Fixture Can Be Mapped Onto
  8. Which Routes a Wet Cargo Fixture Can Be Mapped Onto
  9. The Route That Looked Right and Settled Wrong
  10. Cargo Size Steps and the Granularity of a Route Lot
  11. Choosing Among Three Candidate Assessments for One Fixture
M2 Mapping a Voyage Fixture onto Paper Ch 23-33
  1. The Mapping Statement: One Fixture, One Route, One Quantity
  2. From Cargo Intake to Route Lots
  3. Converting a Lumpsum Fixture to a Per-Tonne Assessment
  4. Mapping a Daily Hire Commitment onto a Voyage Assessment
  5. Deadfreight, Tolerance and the Tonnage You Should Carry
  6. Commission, Brokerage and the Net Rate Behind the Cover
  7. The Positioning Leg Nobody Pays Freight For
  8. A Voyage Fixture Mapped End to End, Part One: The Exposure Sheet
  9. A Voyage Fixture Mapped End to End, Part Two: The Paper Order
  10. The Four Questions Asked Before an Order Leaves the Desk
  11. The Mapping That Covered the Wrong Way Round
M3 Mapping Period and Multi-Shipment Commitments Ch 34-43
  1. A Period Charter-In as a Holding of Vessel Days
  2. Mapping Period Employment Against a Timecharter Assessment
  3. The Assessment's Ship and the Ship You Actually Took
  4. Mapping a Lifting Programme onto Monthly Lots
  5. Spread, Tolerance and the Size of a Programme Hedge
  6. Mapping a Charter-Out Against the Assessment You Came In On
  7. The Gap Between Redelivery and the Next Delivery
  8. Mapping an Optional Period Before Anyone Declares It
  9. A Period Book Mapped onto Two Assessments, Worked
  10. Why a Year of Hire Is Not Twelve Monthly Hedges
M4 Route Basis Ch 44-55
  1. Route Basis Defined as the Gap Between Two Port Pairs
  2. The Load Berth You Fixed and the Load Berth Being Assessed
  3. A Discharge Range Against One Assessed Destination
  4. Distance, Steaming Days and Why Two Similar Trades Diverge
  5. Congestion at One End as a Driver of Route Basis
  6. Fronthaul, Backhaul and the Basis Between Them
  7. Cross-Route Cover: A Liquid Trade Standing In for an Illiquid One
  8. Measuring Route Basis From Your Own Fixture History
  9. Route Basis Through a Seasonal Shift
  10. When a Chokepoint Restriction Breaks a Route Relationship
  11. Route Basis Worked: A West Africa Cargo on a Pacific Assessment
  12. Deciding Whether a Route Gap Is Worth Closing
M5 Vessel-Class Basis Ch 56-66
  1. Vessel-Class Basis Defined in Deadweight and Intake
  2. The Standard Vessel Assessed and the Vessel on the Berth
  3. Covering a Newcastlemax Cargo on a Capesize Assessment
  4. Covering a Kamsarmax Fixture on a Panamax Assessment
  5. Covering a Supramax Trade With a Handysize Assessment
  6. Scaling Between Segments With an Intake Ratio
  7. Why Segment Spreads Widen When the Cargo Mix Shifts
  8. Age, Service Speed and Consumption as a Hedge Mismatch
  9. Gear, Draught and the Ship No Assessment Described
  10. A Split Hedge Across Two Segment Assessments, Worked
  11. The Substitution That Invalidated a Hedge
M6 Timing Basis Ch 67-77
  1. The Day You Fixed Against the Month It Settles
  2. The Voyage That Straddles Two Settlement Months
  3. Laycan Slippage and the Month It Moves Into
  4. One Agreed Level Against a Month of Published Prints
  5. Covering a Single Fixture With an Averaging Instrument
  6. Splitting Cover Across Two Periods to Fit a Laycan
  7. A Period Delivery Window Against a Settlement Quarter
  8. Publication Days, Holidays and the Prints That Never Happen
  9. The Delay That Pushed a Voyage Out of Its Settlement Window
  10. Timing Basis Worked: Fixed Early for a Late Laycan
  11. Keeping Timing Basis on Its Own Reported Line
M7 Cover That Needs More Than One Leg Ch 78-87
  1. Three Mismatches Standing on One Fixture
  2. Stacking a Route Hedge and a Segment Spread
  3. Legging In: The Days Between the First Leg and the Second
  4. The Bunker Leg Behind a Voyage Freight Hedge
  5. Covering Time-Charter Equivalent Rather Than Freight Rate
  6. When the Paper and the Ship Part Company Mid-Voyage
  7. Reconciling Two Legs Carrying Different Quantities
  8. Paper Cover Instead of Finding Employment for Spare Days
  9. Composite Cover on One Capesize Fixture, Worked
  10. What Survives Once Every Leg Is On
M8 Keeping the Mapping Alive Ch 88-98
  1. The Mapping Register a Freight Book Needs
  2. Tagging Every Lot to a Named Vessel
  3. Re-Mapping When the Ship Is Substituted
  4. Re-Mapping When Subjects Fail
  5. Off-Hire Days and the Cover That Outlived the Employment
  6. The Cancelled Cargo and the Orphan Paper Position
  7. Resizing When Intake Is Restated
  8. The Voyage That Diverted and Changed Its Trade
  9. From Broker Recap to the Overnight Position Report
  10. When Leaving a Mismatch Alone Is the Cheaper Answer
  11. The Hedge File a Successor Operator Can Pick Up
M9 Measuring What the Mapping Failed to Transfer Ch 99-109
  1. The Residual Freight Position Expressed in Vessel Days
  2. Valuing Route Mismatch in Dollars per Tonne
  3. Valuing Segment Mismatch in Dollars per Day
  4. The Spread of Outcomes Across a Quarter of Voyages
  5. Separating Rate Error From Tonnage Error
  6. Achieved Freight per Tonne as the Verdict
  7. Attributing the Gap Between Intended and Realised Earnings
  8. Benchmarking Against a Hedge That Matched Perfectly
  9. The Basis Page a Shipping Risk Committee Reads
  10. Pricing a Retained Mismatch Into a Freight Quotation
  11. Which Residual to Extinguish and Which to Keep
M10 Judgement, the Worked Case and the Limits Ch 110-121
  1. The Line Between Covering a Ship and Trading an Assessment
  2. The Open Capesize Nobody Authorised
  3. Covering More Days Than the Fleet Can Deliver
  4. Writing a Cover Ratio Into an Operator Mandate
  5. Appraising an Operator Who Mapped Correctly and Looked Wrong
  6. The Paper Loss on a Fleet That Is Trading Well
  7. Designating Cover Against a Named Fixture
  8. A Worked Case, Part One: The Fixture Book
  9. A Worked Case, Part Two: The Mapping and the Orders
  10. A Worked Case, Part Three: A Quarter of Performance
  11. A Worked Case, Part Four: The Mismatch Explained
  12. What Route Hedging Cannot Do

The brochure gives each of these 121 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 15 of twenty

It stands alone, and it is also the entry point to the Freight and Shipping Desk Academy pathway.

Enrol or enquire See the whole pathway