Eric Johnson correctly states in the JOC article: "The introduction of NYSHEX’s indexes adds depth to an already crowded field of container freight rate index providers. Xeneta, Freightos, Drewry, the Shanghai Containerized Freight Index and Platts, a sister company of the Journal of Commerce within S&P Global, all currently provide ocean freight indexes, with various methodologies." While it is good to have competition in any service or product, the utilization of these indexes needs to be looked at closely. This news has been covered elsewhere as well with the below statement that is not entirely correct from my perspective. It is good to have indexes to track market rate movements, but the majority of business still moves under traditional contracts, thereby the comment on utlilization. “As we see the container shipping industry moving toward index linked contracts, there is a growing need for ways to hedge the volatility of container spot rates,” Source - https://lnkd.in/eAsA2Xnv I looked at the data on the Transpacific and Asia to Europe trades from all the above-mentioned indexes and how close they are to the actual spot rates at the time the indexes were published. I found the Platts index to be the closest to the actual spot market rates. There is quite some gap between the various indexes possibly because of the individual calculation methodologies used. When I track only the weekly movement in USD or percentages, then they all move by quite similar numbers, thereby all indexes are useful in tracking trends.
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Too much of any one thing can be detrimental. Indices should be used with caution, understanding the nuances (like time lags) behind the data before making critical decisions in your supply chain.
Eric Johnson correctly states in the JOC article: "The introduction of NYSHEX’s indexes adds depth to an already crowded field of container freight rate index providers. Xeneta, Freightos, Drewry, the Shanghai Containerized Freight Index and Platts, a sister company of the Journal of Commerce within S&P Global, all currently provide ocean freight indexes, with various methodologies." While it is good to have competition in any service or product, the utilization of these indexes needs to be looked at closely. This news has been covered elsewhere as well with the below statement that is not entirely correct from my perspective. It is good to have indexes to track market rate movements, but the majority of business still moves under traditional contracts, thereby the comment on utlilization. “As we see the container shipping industry moving toward index linked contracts, there is a growing need for ways to hedge the volatility of container spot rates,” Source - https://lnkd.in/eAsA2Xnv I looked at the data on the Transpacific and Asia to Europe trades from all the above-mentioned indexes and how close they are to the actual spot rates at the time the indexes were published. I found the Platts index to be the closest to the actual spot market rates. There is quite some gap between the various indexes possibly because of the individual calculation methodologies used. When I track only the weekly movement in USD or percentages, then they all move by quite similar numbers, thereby all indexes are useful in tracking trends.
NYSHEX says will launch ocean freight rate indexes next year | Journal of Commerce
joc.com
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🚢 Dive into the latest trends shaping the container shipping industry! 🌊📈 This detailed assessment for Thursday, 23 May 2024, reveals significant spikes in spot freight rates and year-on-year comparisons that are sure to capture your attention. From Shanghai to Rotterdam, Los Angeles to Genoa, and beyond, get the scoop on rate changes and expert insights from Drewry Supply Chain Advisors. Don't miss out on the latest developments reshaping global trade! Read more here: https://lnkd.in/dUGvw7f #Contra #ContraConsolidations #LCL #ShippingIndustry #FreightRates #GlobalTrade 🌍
World Container Index - 14 Nov
drewry.co.uk
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🚢 A New Era for Container Freight Pricing Transparency 📈 Exciting news for the container shipping industry: the New York Shipping Exchange (NYSHEX) has secured investment from Intercontinental Exchange (ICE) to launch a new series of container freight indices in 2025. These indices will be based on actual cargo moving rates and made freely available to carriers, shippers, and NVOCCs for index-linked contracts With ICE as the calculation agent, this initiative aims to bring greater price transparency and risk management tools to an industry often challenged by inefficiency and volatility. To learn more follow this path: https://lnkd.in/derc5A4T #Money #RiskManagement #GlobalTrade #Shipping
New York Shipping Exchange to launch container indices next year - Splash247
https://splash247.com
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World Container Index - 18 Jul, Drewry’s World Container Index inched up 1% to $5,937 per 40ft container this week. Freight rates from New York to Rotterdam increased 4% or $28 to $710 per FEU. Likewise, rates from Shanghai to Rotterdam rose 3% or $219 to $8,267 per 40ft box. Similarly, rates from Shanghai to New York spiked 2% or $225 to $9,612 per 40ft container. Rates from Shanghai to Genoa inched up 1% or $113 to $7,727 per FEU. Conversely, rates from Shanghai to Los Angeles fell 3% or $224 to 7,288 per 40ft box. Rates from Rotterdam to New York also dropped 1% or $12 to $1,943 per 40ft container. Meanwhile, rates from Rotterdam to Shanghai and Los Angeles to Shanghai remain stable. Drewry expects ex-China rates to hold steady next week and remain high throughout the peak season. https://lnkd.in/e9mq5iKs
World Container Index - 11 Jul
drewry.co.uk
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Global Freight Rates on the Rise. In collaboration with Drewry Shipping Consultants Ltd, our latest report forecasts a 30% increase in global freight rates (spot and contract, including fuel charges) for 2024, a significant shift from an earlier prediction of a 27% contraction. For 2025, rates are expected to rise another 4% as elevated spot rates impact the contract market. Read the full report to learn more: https://lnkd.in/eGu6PUUf
From Disruption to Growth: Drewry’s Latest Insights on the Container Market
https://birchstonemarkets.com
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Container spot rates variation. The variation is across the three main trade lanes, Transpacific, Asia-Europe, Transatlantic. Rates remained elevated for the Asia-Europe and Asia-North America trade lanes, but other trade lanes continue to dent carriers’ earnings outlook. The transpacific spot freight rates, by Drewry World Container Index, a measure of the average spot freight rates for FEU recorded a 1% decrease to $2,244 FEU while the Xeneta Shipping Index which serves as an open, free, and transparent source of short-term FAK (freight all kind) rates for FEU across 8 global trade corridors, recorded a 3% increase to $1,993 FEU. #shippingindustry
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Finally some relief in sight on container rates. According to this article, the most significant drops were seen on the transpacific Asia-North America route, where Drewry’s World Container Index (WCI) Shanghai-Los Angeles declined 5% week on week, to $6,934 per 40ft container (as of 7/25/2024). Count on Triad's size and scale to negotiate the best container rates for your next project produced in China!
Container spot rates have peaked as all major trades see prices fall - The Loadstar
https://theloadstar.com
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Freight Market May Update: Challenges and Changes The global freight market faces multiple disruptions—from conflicts in the Middle East affecting routes, to the bridge collapse in Baltimore impacting US East Coast operations. Despite these challenges, there are signs of stabilisation and recovery in shipping rates, with a special focus on the Asia-Australia trade lane. 📉 Drewry’s World Container Index shows a 31.7% decline over the past 13 weeks yet remains 55% higher year-on-year. Connect with our specialists for tailored advice: AUS 1300 651 888 | NZ (09) 974 4818 #FreightUpdate #GlobalShipping #Logistics #SupplyChainManagement #BusinessGrowth
Freight Market Update – May 2024
https://www.magellanlogistics.com.au
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The dreaded rate rise is here: 🚢💰 This is only the second week since 25th Jan that the Drewry WCI has shown an increase in 40ft, east-west rates. A composite of 8 major east-west lanes reveals an increase of 16% from last week. Though a lot of us saw this rise coming, https://lnkd.in/eV9VpPvH, it's still a bit of a shock to see. Hopefully anyone holding out for lower contract rates will have locked in before the spot market spikes further #internationaltrade #shipping #containershipping #globaltrade #shippingrates
The Rise of Shipping Rates: How Will It Impact Your Business?
teesglobal.co.uk
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This report is worth the read. This report which was written by Jason Price, Cushman & Wakefield Americas Head of Logistics & Industrial Research, quickly and cogently shows the impact of real estate prices in top port markets. If real estate values and TEU volumes are tied at the hip then this report should be given some real thought by OEM's, economic development agencies, rail shippers, the trucking community and investors. https://lnkd.in/eHezHZZC
U.S. Ports Update | Industrial Insights | United States | Cushman & Wakefield
cushmanwakefield.com