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Revisiting freight cost assessment model

Client: Leading iron ore mining company

This iron ore miner had been selling on an FOB basis, however, the commodity is priced on a CFR basis. Drewry advised the client on a freight cost assessment model to enable FOB price estimates. As the market has been evolving in terms of parcel size, fuel consumption and environmental regulation, Drewry revised the freight cost model such that it was in line with the latest trends.

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