How to create a financial forecast for a maritime freight transport company?

Developing and maintaining an up-to-date financial forecast for your maritime freight transport company is key in order to maintain visibility on your business’s future cash flows.
If you feel overwhelmed at the thought of putting together a maritime freight transport company financial forecast then don’t worry as this guide is here to help you.
We'll cover everything from: the main objectives of a financial forecast, the data you need to gather before starting, to the tables that compose it, and the tools that will help you create and maintain your forecast efficiently.
Let's get started!
Why create and maintain a financial forecast for a maritime freight transport company?
The financial projections for your maritime freight transport company act as a financial blueprint to guide its growth with confidence and ensure its long-term financial viability.
To create them, you will need to look at your business in detail - from sales to operating costs and investments - to assess how much profit it can generate in the years to come and what will be the associated cash flows.
During challenging market conditions, maintaining an up-to-date financial forecast enables early detection of potential financial shortfalls, allowing for timely adjustments or securing financing before facing a cash crisis.
Your maritime freight transport company's financial forecast will also prove invaluable when seeking financing. Banks and investors will undoubtedly request a thorough examination of your financial figures, making precision and presentation essential.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

What information is used as input to build a maritime freight transport company financial forecast?
A maritime freight transport company's financial forecast is only as good as the inputs used to build it.
If you are creating (or updating) the forecast of an existing maritime freight transport company, then you mostly need your accounting information, key historical operating non-financial data, and your team’s input on what to expect for the coming years.
If you are building financial projections for a maritime freight transport company startup, you will need to have done your research and have a clear picture of your competitive environment and go-to-market strategy so that you can forecast sales accurately.
For a new venture, you will also need a precise list of the resources needed to keep the maritime freight transport company running on a day-to-day basis and a list of the equipment and expenditures required to start the business (more on that later).
Let's now take a closer look at the elements that make up your maritime freight transport company's financial forecast.
The sales forecast for a maritime freight transport company
The sales forecast, also called topline projection, is normally where you will start when building your maritime freight transport company financial forecast.
Creating a coherent sales projection boils down to estimating two key drivers:
- The average price
- The number of monthly transactions
To do this, you will need to rely on historical data (for an existing business), market research data (for both new and existing maritime freight transport companies), and consider the elements below:
- Fuel prices: As a maritime freight transport company, you are heavily reliant on fuel to power your ships. Any fluctuations in fuel prices can greatly affect your average price as well as the number of monthly transactions. If fuel prices increase, you may have to raise your prices to cover the additional cost, which could result in a decrease in the number of transactions as customers may look for alternative, cheaper shipping options.
- Weather conditions: The weather can have a significant impact on your business's operations and ultimately, your sales forecast. Severe weather conditions such as storms or hurricanes can cause delays and disruptions in your shipping schedule, leading to a decrease in the number of monthly transactions. Additionally, adverse weather may require your ships to take longer routes, resulting in higher fuel costs and potentially affecting your average price.
- Demand for specific routes: The demand for certain shipping routes can affect your average price and number of monthly transactions. If there is high demand for a particular route, you may be able to charge a premium price and see an increase in transactions. On the other hand, if there is low demand for a route, you may have to lower your prices to attract customers and maintain your transaction levels.
- International trade policies: Changes in international trade policies can have a direct impact on your business's performance. For example, if there are new tariffs or trade restrictions imposed on goods that you transport, it could lead to a decrease in demand for your services and lower your average price. On the other hand, favorable trade policies may result in increased demand and potentially higher prices.
- Competitor actions: The actions of your competitors can also affect your business's average price and number of monthly transactions. If a new competitor enters the market and offers lower prices, you may have to adjust your prices to remain competitive, potentially resulting in a decrease in average price. Additionally, if your competitors offer new, innovative services or routes, it could attract customers away from your company, impacting your transaction levels.
After the sales forecast comes the operating expenses budget, which we will now look into in more detail.
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The operating expenses for a maritime freight transport company
The next step is to estimate the expenses needed to run your maritime freight transport company on a day-to-day basis.
These will vary based on the level of sales expected, and the location and size of your business.
But your maritime freight transport company's operating expenses should include the following items at a minimum:
- Staff Costs: This includes salaries, wages, benefits, and any other expenses related to your employees, such as training and recruitment costs.
- Accountancy Fees: As a maritime freight transport company, you will need to hire accountants to keep track of your financial records and ensure compliance with tax laws and regulations.
- Insurance Costs: This includes marine insurance, liability insurance, and any other insurance policies necessary to protect your business from potential risks and liabilities.
- Software Licences: You will need to invest in software licenses for your business operations, such as transportation management systems, accounting software, and other relevant tools.
- Banking Fees: As a freight transport company, you will have various banking fees, including transaction fees, wire transfer fees, and foreign exchange fees.
- Fuel Costs: This is one of the most significant expenses for a maritime freight transport company, as fuel prices can fluctuate and significantly impact your operating costs.
- Maintenance and Repair Costs: Your vessels and equipment will require regular maintenance and repairs to ensure they are in good working condition, which can be a significant expense.
- Port Charges: You will need to pay port charges for using ports and terminals for loading and unloading cargo, as well as other services provided by port authorities.
- Crew Costs: This includes salaries, benefits, and other expenses related to your crew members, such as training, meals, and accommodation.
- Cargo Handling Fees: You may need to pay cargo handling fees to third-party companies for loading and unloading cargo from your vessels.
- Communication Expenses: As a maritime freight transport company, you will have various communication expenses, such as satellite and radio communication fees.
- Taxes and Duties: You will have to pay taxes and duties, such as customs duties and value-added tax (VAT), on your imports and exports.
- Marketing and Advertising Costs: To attract customers and promote your services, you may need to invest in marketing and advertising activities, such as creating a website, attending trade shows, and running ad campaigns.
- Legal Fees: You may need to hire lawyers for legal advice and to handle any legal issues that may arise in your business operations.
- Training and Development Costs: To keep your employees up to date with industry trends and regulations, you may need to invest in training and development programs.
This list is, of course, not exhaustive, and you'll have to adapt it according to your precise business model and size. A small maritime freight transport company might not have the same level of expenditure as a larger one, for example.
What investments are needed to start or grow a maritime freight transport company?
Once you have an idea of how much sales you could achieve and what it will cost to run your maritime freight transport company, it is time to look into the equipment required to launch or expand the activity.
For a maritime freight transport company, capital expenditures and initial working capital items could include:
- Vessels: As a maritime freight transport company, one of your biggest capital expenditures will be purchasing or leasing vessels. These can range from cargo ships to tankers, and the cost will vary depending on the type and size of the vessel.
- Containers: Another important capital expenditure for a maritime freight transport company is containers. These are used to transport goods and can be purchased or leased. The cost will depend on the size and type of container.
- Port Infrastructure: In order to operate, your company will need to have access to ports and terminals. This may require investing in port infrastructure, such as docks, cranes, and storage facilities.
- Communication and Navigation Equipment: As a maritime freight transport company, you will need to invest in communication and navigation equipment to ensure the safety and efficiency of your operations. This may include radios, GPS systems, and radar equipment.
- Maintenance and Repair: Keeping your vessels and equipment in good working condition is essential for the success of your company. This may require investing in maintenance and repair services, as well as spare parts for your vessels and equipment.
Again, this list will need to be adjusted according to the specificities of your maritime freight transport company.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The financing plan of your maritime freight transport company
The next step in the creation of your financial forecast for your maritime freight transport company is to think about how you might finance your business.
You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.
Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.
Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.
What tables compose the financial plan for a maritime freight transport company?
Now let's have a look at the main output tables of your maritime freight transport company's financial forecast.
The projected profit & loss statement
The projected profit & loss shows how profitable your maritime freight transport company is likely to be in the years to come.

For your maritime freight transport company to be financially viable, your projected P&L should ideally show:
- Sales growing above inflation (the higher the better)
- Profit margins which are stable or expanding (the higher the better)
- A net profit at the end of each financial year (the higher the better)
This is for established maritime freight transport companies, there is some leniency for startups which will have numbers that will look a bit different than existing businesses.
The projected balance sheet
The projected balance sheet gives an overview of your maritime freight transport company's financial structure at the end of the financial year.
It is composed of three categories of items: assets, liabilities and equity:
- Assets: are what the business possesses and uses to produce cash flows. It includes resources such as cash, buildings, equipment, and accounts receivable (money owed by clients).
- Liabilities: are the debts of your maritime freight transport company. They include accounts payable (money owed to suppliers), taxes due and bank loans.
- Equity: is the combination of what has been invested by the business owners and the cumulative profits to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow projection
The cash flow forecast of your maritime freight transport company will show how much cash the business is expected to generate or consume over the next three to five years.

There are multiple ways of presenting a cash flow forecast but from experience, it is better to organise it by nature in order to clearly show these elements:
- Operating cash flow: how much cash is generated by the maritime freight transport company's operations
- Investing cash flow: what is the business investing to expand or maintain its equipment
- Financing cash flow: is the business raising additional funds or repaying financiers (debt repayment, dividends)
Your cash flow forecast is the most important element of your overall financial projection and that’s where you should focus your attention to ensure that your maritime freight transport company is adequately funded.
Note: if you are preparing a financial forecast in order to try to secure funding, you will need to include both a yearly and monthly cash flow forecast in your maritime freight transport company's financial plan.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Which tool should you use to create your maritime freight transport company's financial forecast?
Creating your maritime freight transport company's financial forecast may sound fairly daunting, but the good news is that there are several ways to go about it.
Using online financial forecasting software to build your maritime freight transport company's projections
The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.
There are several advantages to using specialised software:
- You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
- You have access to complete financial forecast templates
- You get a complete financial forecast ready to be sent to your bank or investors
- You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
- You can create scenarios to stress test your forecast's main assumptions
- You can easily update your forecast as time goes by to maintain visibility on future cash flows
- You have a friendly support team on standby to assist you when you are stuck
- It’s cost-efficient and much cheaper than using an accountant or consultant (see below)
If you are interested in this type of solution, you can try our forecasting software for free by signing up here.
Calling in a financial consultant or chartered accountant
Enlisting the help of a consultant or accountant is also a good way to obtain a professional maritime freight transport company financial forecast.
The downside of this solution is its cost. From experience, obtaining a simple financial forecast over three years (including a balance sheet, income statement, and cash flow statement) is likely to cost a minimum of £700 or $1,000.
The indicative cost above, is for a small business, and a forecast is done as a one-shot exercise. Using a consultant or accountant to track your actuals vs. forecast and to keep your financial projections up to date on a monthly or quarterly basis will cost a lot more.
If you opt for this solution, make sure your accountant has in-depth knowledge of your industry, so that they may challenge your figures and offer insights (as opposed to just taking your assumptions at face value to create the forecast).
Why not use a spreadsheet such as Excel or Google Sheets to build your maritime freight transport company's financial forecast?
Creating an accurate and error-free maritime freight transport company financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.
Most entrepreneurs lack the expertise required to create an accurate financial forecast using spreadsheet software like Excel or Google Sheets. As a result, it is unlikely anyone will trust your numbers.
The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.
This is why professional forecasters all use software. With the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.
Finally, like everything with spreadsheets, tracking actuals vs. forecasts and updating your forecast as the year progresses is manual, tedious, error-prone, and time-consuming. Whereas financial forecasting software like The Business Plan Shop is built for this.
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Use our financial projection templates for inspiration
The Business Plan Shop has dozens of financial forecasting templates available.
Our examples contain both the financial forecast, and a written business plan which presents, in detail, the company, the team, the strategy, and the medium-term objectives.
Whether you are just starting out or already have your own maritime freight transport company, looking at our template is always a good way to get ideas on how to model financial items and what to write when creating a business plan to secure funding.

Takeaways
- A financial forecast shows expected growth, profitability, and cash generation metrics for your maritime freight transport company.
- Tracking actuals vs. forecast and having an up-to-date financial forecast is key to maintaining visibility on your future cash flows.
- Using financial forecasting software is the modern way of creating and maintaining financial projections.
We hope that this guide helped you gain a clearer perspective on the steps needed to create the financial forecast for a maritime freight transport company. Don't hesitate to contact us if you have any questions!
Need a convincing business plan?
The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Also on The Business Plan Shop
- Financial forecast example
- How to project revenues for a business?
- Financial forecast template for a business idea
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