ApplicationThe inland barge tanker market is currently strained. Freight rates are low on average because of overcapacity in the barge market. Additionally fuel prices are high which increases variable costs. The result is wafer-thin profit margins. Many barge tanker companies are less successful than initially anticipated because of these harsh market conditions. However, there are companies in the barge market that are outperforming the rest! These companies are focusing on maximizing revenues, minimizing costs and optimizing the use of barge capacity.
The freight Control application is designed to improve financial results of barge companies by supporting these areas:
ApplicationMarket transparency: the Freight Control app gives access to up-to-date ARA and Rhine barges freight rates and diesel bunker prices. This information reinforces the bargaining position when negotiating freights and fuel prices.
Profit margin: Based on cost structure and basic voyage information profit margins for a specific voyage can be easily calculated. This information is vital during the negotiating process. After agreeing on terms and during the voyage the information can be refined. This makes the calculation even more accurate. For instance a special page is available which enables registration of loading and discharge waiting times in order to calculate demurrage claims. After the trip is finished revenue, costs and profits can be calculated precisely. From this information companies can learn and improve their operations.
Financial results: Based on information contained in profit margin calculations one can easily gain insights into financial performance in previous periods. Overviews from income, costs and cumulative cash flows can be generated by a few clicks.
Freight Control contributes to more income and decreases costs by market transparency, insight into profit potential and better cost control. Additionally the ARA and Rhine barge freight rate information show which routes are most profitable. All together bargaining power is strengthened as a result of better information.