Key takeaways
- Use only quantity allocations approved by the responsible vessel team.
- Include the complete service cost of each purchase stage.
- Keep the unknown later price explicit.
- Compare the same total accepted requirement and programme scope.
Distinguish the two coastal propositions
AMP's bunker-sales publication separates Pacific and Atlantic sector activity. AMP marine-fuel table
The historical table does not establish a price relationship or current availability between those sectors. The buyer needs actual offers for the locations and programme stages being assessed.
For a current transaction, the split-purchase comparison is not provided; obtain current verified information. Record the approved allocations, complete service charges, fixed prices and unresolved later pricing basis.
Establish a fair single-purchase baseline
The baseline should cover the complete approved requirement at a feasible location and window. Include the accepted delivery expense and other costs that differ under the alternative.
Do not choose an artificially expensive baseline solely to make the split look attractive. Use a current supported proposition or clearly identify a hypothetical scenario.
If the single purchase is not technically or commercially acceptable, it is not a genuine alternative. The calculation can still illustrate arithmetic, but it should not be presented as a live procurement choice.
Identify what the split actually adds
A split can change the number of delivery services, payment dates and remaining price exposure. The relevant expenses should be identified explicitly rather than hidden in an average fuel price.
Keep quantities and grades separate where the approved requirement needs them. The example below uses one simplified product basis; a multi-grade comparison should preserve each accepted line.
The responsible team must approve the allocation. Procurement should not reduce the early quantity simply to expose more of the purchase to an attractive but uncertain later indication.
Illustrative later-price threshold
ILLUSTRATIVE — fictional accepted alternatives, not current Panama offers or a fuel-management recommendation.
The approved total requirement is 600 tonnes. Buying it all at an early price of $620 per tonne with one $4,000 service charge costs $376,000.
An authorised split buys 200 tonnes early and 400 tonnes later. With a $4,000 service charge for each delivery, the fixed part is 200 × $620 + $8,000 = $132,000. The split total is $132,000 plus 400 times the unknown later price.
The break-even later price is ($376,000 − $132,000) ÷ 400 = $610 per tonne.
At a hypothetical later price of $590, the split costs $368,000, saving $8,000. At $630, it costs $384,000, or $8,000 more. Neither later price is a forecast, and financing or other programme effects are excluded.
The threshold is lower than the early unit price because the split adds another delivery expense. A later quote that merely matches the early price would not offset that extra cost under these assumptions.
A split-purchase comparison table
| Input | Single purchase | Split purchase |
|---|---|---|
| Approved quantity | Complete accepted requirement | Authorised allocation across stages |
| Fuel price | Supported price for the full parcel | Fixed early component and identified later uncertainty |
| Service expense | Actual single-delivery scope | Complete cost of both services |
| Technical acceptance | Required for the full early purchase | Required for each proposed allocation |
| Funding | Payment timing for the complete order | Separate timing and exposure for each stage |
| Programme effect | Accepted service arrangement | Any additional assessed time or conditions |
| Decision result | Known or clearly conditional total | Threshold and outcomes under stated later prices |
Fictional case: a lower later indication is not low enough
A fictional buyer sees a later coastal indication below its early offer and assumes the split must save money. The initial worksheet compares only the two fuel unit prices.
After adding the second delivery service, the required later-price threshold falls below the indication. The split would not save money on the supported scope, even if the indication became an executable offer unchanged.
The buyer retains the authorised allocation options but corrects the commercial conclusion. It may still prefer the split for another supported reason, such as an accepted programme constraint, but it no longer describes the price difference alone as a saving.
Recalculate when the scope changes
A revised quantity, new service charge or different payment structure changes the threshold. Update the actual affected input rather than relying on the earlier calculation.
If the later offer becomes fixed, compare its complete accepted total directly. The threshold remains useful history, but it should not replace the now-available transaction evidence.
Where cancellation or amendment costs affect the choice, establish their actual basis under the current agreement and obtain appropriate review. Do not assume the early purchase can be reduced without consequence.
Common mistakes
Avoid comparing only unit prices, omitting the second service charge and treating an unknown later price as fixed. Other errors include choosing an unapproved allocation or overlooking amendment costs. The threshold explains the required commercial outcome; it does not establish that the market will deliver it.
Where Zeaclub fits
Zeaclub provides a multi-party shared workspace for owners, charterers, brokers and port agents.
Zeaclub offers digitalised procedures across the voyage workflow.
Explore Zeaclub
Educational information only; not legal, financial or trading advice. Contract wording and applicable rules control. Verify current requirements and obtain qualified advice before acting.
Frequently asked questions
Does any lower later price make a split cheaper?
No. The reduction must offset the additional supported costs of splitting the purchase.
Is the threshold a prediction?
No. It is the price that makes the stated scenarios equal under their assumptions.
Can procurement choose the split quantity solely from this calculation?
No. The responsible team must approve the acceptable quantity allocation first.
What belongs in the threshold slot?
Record approved quantities, full service costs, fixed inputs and the unresolved later-price basis.