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Economics of one container voyage from Asia to Europe

You run the case. Read the prompt, answer questions from the notes below, and share data only when the candidate asks for it or gets stuck. Score at the end.

Case timer

00:00

Target length:

1. Read the prompt aloud

Read it slowly, then pause. Let the candidate ask questions before they structure.

Bluewake Lines (a fictional carrier) sails a 15,000 TEU ship from Asia to Europe, a 35-day leg. The ship is 85 percent full. The ship itself costs USD 60,000 a day (charter or capital), it burns 150 tonnes of fuel a day at USD 600 per tonne, port and canal fees are USD 3 million, and handling and container costs are USD 300 per TEU carried. What is the cost per TEU carried, and what would the voyage earn at a freight rate of USD 2,000 per TEU?

2. Answers to clarifying questions

This case has no scripted clarifying answers. Answer from the prompt, and say "assume what you think is reasonable" if the prompt does not cover it.

3. A model structure

Compare the candidate's structure with this one. A different split can be just as good if it is clean and fits the problem.

Voyage profit = TEU carried x (freight rate minus cost per TEU)
- TEU carried = capacity x utilization
- Time costs = (daily ship cost + daily fuel cost) x days
- Other costs = port and canal fees + handling per TEU

4. The working, step by step

Each step shows how a strong candidate works it out. Share a new fact from it only when the candidate asks or is stuck, and let them do the math: the result in the dark box is what they should reach.

Step 1: TEU carried
What a strong candidate does: 15,000 TEU at 85 percent.
TEU carried: 15,000 × 0.85 = 12,750
Step 2: Total voyage cost
What a strong candidate does: Ship 60,000 and fuel 90,000 a day for 35 days, plus 3 million of fees, plus 300 per TEU.
Total voyage cost (USD): 60,000 × 35 + 150 × 600 × 35 + 3,000,000 + 300 × 12,750 = 12,075,000
Step 3: Cost per TEU
What a strong candidate does: Total cost divided by TEU carried.
Cost per TEU carried (USD): 12,075,000 ÷ 12,750 = 947
Step 4: Voyage margin at USD 2,000 per TEU
What a strong candidate does: Revenue minus cost.
Voyage margin (USD): 12,750 × 2,000 - 12,075,000 = 13,425,000

The recommendation to listen for

At the end, say: "The CEO walks in. What is your recommendation?"

Bluewake should sail this leg, because it costs about USD 947 per TEU and earns about USD 13.4 million at USD 2,000 per TEU. First, the ship carries 12,750 TEU at 85 percent full against a total cost of about USD 12.1 million. Second, this margin must also carry the return leg from Europe, which usually moves less cargo at lower rates. The risk is that freight rates can halve within months. As a next step, test the voyage at lower rates and slower sailing speeds.

Risks a strong answer names: Freight rates can halve within months; Fuel prices move with oil prices.

Score the candidate

Score each criterion from 1 to 5. A 2 or a 4 sits between the descriptions.

This case has no exhibit. Score Exhibit reading on how the candidate used the data you gave them: did they pick out the number that matters and say what it means?

Structuring

1: No clear structure, or a memorized framework that does not fit the problem.
3: A sensible structure, but with some overlap, a gap, or no clear priority.
5: A structure built for this problem, with no overlap and no gaps, a stated hypothesis, and a clear first step.

Math

1: Frequent errors, no units, or needed heavy help to finish.
3: Right answers but slow or messy working, or one error caught late.
5: Accurate and clearly narrated, with units, a sense check, and what the number means.

Exhibit reading

1: Read the chart aloud without finding the number that matters.
3: Found the key number but gave only part of the so-what.
5: Pulled the right number quickly and said what it means for the case.

Synthesis

1: Summarized what was done, with no clear answer.
3: Gave an answer, but with weak reasons or no next step.
5: Answer first, then two or three reasons with numbers, the main risk, and next steps.

Communication

1: Hard to follow: long silences, no signposting.
3: Clear most of the time, with some rambling.
5: Calm and concise, signposted each step, and checked in with the interviewer.

Total

0 out of 25

Score all five criteria to see the band and the feedback template.