The general level of ocean rates is an important driver of ocean spreads in that the basic math of increasing rates will dictate a wider ocean freight spread. Thus, higher offshore grain demand generally will translate into higher overall rates, that in turn will drive spreads wider. Since late 1998 the general trend has been toward increasing freight rates and increasing ocean freight spreads. Any differences in costs associated with differences in distances are immaterial. A third component bearing on the spread is fuel cost.
Bunker fuel tends to be cheaper in Portland and can influence rates.
Although at times the rates quoted for shipments from these two ports may be different, the differences tend to be small and the ocean spread between Vancouver and Portland used in the Grain Flow Matrix is zero. This is primarily due to the fact that most vessels shipping out of Prince Rupert will sail to Vancouver first to get fuel prior to sailing to Prince Rupert for loading. Therefore, the cost relative to distance and time are about the same. For the purposes of the Grain Flow Matrix, the spread between Vancouver and Prince Rupert is zero. Thunder Bay vs.