Vertical integration costs 

Order Instructions/Description

A Belgian chocolate maker, part of bigger multinational food company, is considering purchasing a small vessel to import cocoa from western Africa.
A dry bulk ship will have to make the return trip carrying ballast; a general cargo could carry some of its parent company’s products (but not dairy products, which means it might have to undertake return trips below maximum capacity); a breakbulk reefer would guarantee maximum utilisation of the ship’s capacity.
You are asked to consider the yearly costs (Bunkering, Operational, Insurance, Port etc.) for 3 handysize vessels (dry, general, reefer) operating on the Abidjan-Antwerp route. Most of these costs can be quantified using Drewry’s Ship Operating Costs Annual Review and Forecast, available in the library.