How does the FIFO (First-In-First-Out) calculation work in CharterWorks?

First in, first out (FIFO) is a popular method in shipping to take different bunker events at different prices into account. To calculate the price of the available fuel stock on board, bunkers are expected to be used in the order in which they were received on the vessel.

CharterWorks supports the FIFO calculation and always takes the bunker amount and price from the oldest to the latest bunker event for calculating the fuel costs.

Example

At the begin of a (short) voyage, the ship has 170 mt MDO:

• 20 mt MDO left from a bunker event on mid January (price $800/mt) and
• 150 mt MDO left from a bunker event on mid February (price $700/mt).

The voyage may require 50 mt MDO. 20 mt are taken from the first bunker, the rest (30 mt) from the latest bunker stock.

The fuel costs are in total $37,000:

• 20 mt x $800 = $16,000
• 30 mt x $700 = $21,000