World Container Index launched, aims to become basis of derivatives market
The World Container Index (WCI), a joint venture with London's Drewry Shipping Consultants, has been launched to offer another source of information on global freight rates, Shippingazette reports.
The first published World Container Index freight rates on September 1 showed increases on some major trade lanes.
The spot container freight rate index on the Shanghai-Genoa route was $2,270 per FEU in the first week of September, up eight per cent from the first week of August. On the Shanghai-New York route, the rate was $3,477 per FEU, up 11 per cent compared to the one in the first week of August.
The WCI rate indices for the backhaul routes from Europe and the US to China have remained stable over the past month.
The WCI reports agreed spot container freight rates for major east-west trade routes and comprises 11 route-specific indices representing individual shipping routes and a composite index.
"Data is gathered from actual transactions reported by panellists in the US, Europe and Asia, representing a cross-section of users in the container freight market," said the WCI statement.
Said WCI's Richard Heath: "The launch of the WCI is a major milestone for the container freight market. Our work in the build-up to this day has demonstrated both the appetite for this tool and the robustness of our approach and methodology."
Philip Damas of Drewry, one of the WCI joint venture partners, said: "We expect trading of container derivatives against the WCI index to start this month. Moreover, shippers who have contacted WCI will gain access to the latest weekly indices and the historical prices, for the purpose of benchmarking and index-linked contract formation, from this week."
The WCI claims that it is the only weekly assessment of container freight rates on backhaul as well as headhaul routes, providing risk management and hedging opportunities for all freight users.
The first published World Container Index freight rates on September 1 showed increases on some major trade lanes.
The spot container freight rate index on the Shanghai-Genoa route was $2,270 per FEU in the first week of September, up eight per cent from the first week of August. On the Shanghai-New York route, the rate was $3,477 per FEU, up 11 per cent compared to the one in the first week of August.
The WCI rate indices for the backhaul routes from Europe and the US to China have remained stable over the past month.
The WCI reports agreed spot container freight rates for major east-west trade routes and comprises 11 route-specific indices representing individual shipping routes and a composite index.
"Data is gathered from actual transactions reported by panellists in the US, Europe and Asia, representing a cross-section of users in the container freight market," said the WCI statement.
Said WCI's Richard Heath: "The launch of the WCI is a major milestone for the container freight market. Our work in the build-up to this day has demonstrated both the appetite for this tool and the robustness of our approach and methodology."
Philip Damas of Drewry, one of the WCI joint venture partners, said: "We expect trading of container derivatives against the WCI index to start this month. Moreover, shippers who have contacted WCI will gain access to the latest weekly indices and the historical prices, for the purpose of benchmarking and index-linked contract formation, from this week."
The WCI claims that it is the only weekly assessment of container freight rates on backhaul as well as headhaul routes, providing risk management and hedging opportunities for all freight users.