Contract
Base rate
Analogy
The AEU
Opportunity
01
Your ocean freight contract

What's in a
freight contract?

Every ocean freight invoice has two components. BAF is transparent and separately managed. The base rate hides something important inside it.

Base Rate
Negotiated per TEU in your contract
Fixed ~75%
BAF
Bunker Adjustment Factor — fuel surcharge
Variable ~25%

BAF was pulled out of the base rate decades ago because fuel costs are volatile and external. That made it worth managing separately.

02
Let's open it up

What's actually inside
the base rate?

Base Rate
What's actually inside?
Click to open
Two very different cost types, hidden in one number
Fixed component
Service
The cost of physically moving your container — vessel operations, port handling, equipment, carrier margin, adjusted for your volume commitment.
Predictable & Stable
JanJunDec
Variable component
Space
The scarcity premium for a slot on a specific service, on a specific week, on a specific trade lane. Pure supply and demand.
Volatile & External
JanJunDec

Service costs change slowly — maybe once a year at contract renewal. Space costs change week to week, driven by demand surges, blank sailings, and seasonal peaks. One is a known cost. The other is a market risk.

This mismatch exists in every market cycle. The AEU price adjusts to reflect conditions; service contracts stay intact.

03
The pattern

Space behaves like BAF,
not like Service

The industry already separated fuel costs from the base rate because they were volatile and external. Space scarcity has the exact same properties.

Service
Cost of Moving
Vessel operations, port handling, equipment, crew, carrier margin. Reflects what the carrier delivers.
Stable — changes at contract renewal
BAF
Fuel Cost
Bunker fuel prices. External to carrier performance. Already separated out decades ago for this exact reason.
Volatile — moves with oil markets
📦
Space
Scarcity Cost
Slot availability on a given week and service. External to carrier performance. Buried in the base rate.
Volatile — moves with demand & capacity
04
Introducing the AEU

So how do you price space
separately?

The Allocation Equivalent Unit — a tradeable loading guarantee that lives alongside your contract, not inside it.

📦
Step 1

Reserve

Shippers purchase AEUs from carriers through Laneway by service and week, 8–12 weeks before sailing. Space is priced — visible, tradable, and guaranteed.

Space becomes visible
Step 2

Flex

If shipper forecasts change, they buy or sell AEUs on the Laneway market. The slot moves to someone who needs it — the carrier's vessel stays full.

Cancellations become cargo
📋
Step 3

Book

Shippers attach the AEU code to their contract booking. The carrier recognizes the code and attaches the loading guarantee — no new systems, no workflow changes.

Space guaranteed
05
The opportunity

It's finally time
to fix allocation

Rewrite the equation

When fuel was bundled into the base rate, neither shippers nor carriers could manage it effectively. Separating BAF gave both sides transparency and control over a volatile cost.

Space scarcity is the same kind of cost — volatile, external, and impossible to manage when it's hidden. Separating it unlocks the same benefits.

TEU
+
AEU
+
BAF

The TEU prices the service. The AEU prices the space. The BAF prices the fuel.
Three distinct costs, each visible, priced, and managed on its own terms.