The Logistician
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt
No Result
View All Result
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt
No Result
View All Result
The Logistician
No Result
View All Result
Home Mode Sea

What is the global container index?

27/04/2020
in Sea
What is the global container index?
0
SHARES
190
VIEWS
Share on FacebookShare on Twitter

A shipper with a high volume of cargo to move by sea over time will negotiate a service contract with an ocean carrier, generally on an annual basis (the norm in the trans-Pacific market) or quarterly. Buying shipping services in bulk is designed to offer the shipper a lower per-slot cost through a volume discount.

Alternatively, a shipper can purchase freight on a spot basis. The spot price to move a container from Port A to B offers a real-time view of the current supply/demand balance in a particular trade lane. If the rate is falling, there’s too much capacity versus cargo volume, and vice versa.

Indices track the change in pricing along the main lanes for the cost to ship a 40-foot-equivalent-unit (FEU) container. A global container index is a weighted average of individual lane indices and offers a big-picture perspective on the worldwide supply/demand balance.

Looked at over a span of multiple years, global indices provide important insights on the ebb and flow of ocean container markets.

The challenge, of course, is to discern why an index is rising or falling. If it’s increasing, it could be because of rising cargo demand, whether due to economic strength in a particular import destination, some sort of geopolitical event, or some other reason. Or it could be because there’s not enough vessel supply. Which is it? If it’s both, how much of each?

One relatively clear example: The threat of tariffs by President Donald Trump convinced American importers to pull cargoes in ahead of time, which pushed up demand to the U.S. market during the second half of 2018, elevating trans-Pacific indices and thereby global indices.

In most cases, however, it’s not so simple. While the number of ships on a particular lane is known, carriers can “blank” (cancel) sailings to adjust capacity. Thus, if an index falls 10%, is that a true measure of falling demand, or was the demand decline 20%, with rates partially supported by blank sailings?

Container indices include the Shanghai Containerized Freight Index (SCFI), which was created by the Chinese government in 2005 and is operated by the Shanghai Shipping Exchange and published weekly; the Drewry Global Freight Rate Index (SONAR: WCI.GLOBCOMP), also published weekly; and  (FBX). Freightos launched its weekly index in 2017, then teamed up with the Baltic Exchange in 2018 and subsequently launched the Freightos Baltic Daily Global Index (SONAR: FBXD.GLBL).

Source: Shanghai Shipping Exchange

The global index rate is calculated differently by different index providers. Drewry polls “a stable panel of buyers, around 30 freight forwarders and non-vessel-operating common carriers, who provide their buy rates and market data.”

The SCFI aggregates a mixture of spot rates for containers exported from Shanghai to 15 global reports, compiled by SCFI panelists as well as a number of carriers, forwarders and shippers.

Freightos’ global index is derived from a weighted average of 12 routes in various directions between Asia and the U.S., Asia and Europe, Europe and the U.S., and Asia and South America.

Source: FBX – Freightos Baltic Index

To get the route pricing, it takes anonymized, aggregated data from the carriers, forwarders and shippers that use its WebCargo by Freightos rate-management platform. According to Freightos, “The rates are not polled or tweaked in any way, shape or form.”

Source: FreightWaves

Tags: containerglobal container index
Previous Post

Why Existing Airbus A380s Won’t Be Converted To Freighters

Next Post

Chaos in India as lack of drivers impacts every sector and every transport mode

Related Posts

10 Largest Container Shipping Companies in the World in 2021
Sea

10 Largest Container Shipping Companies in the World in 2021

17/02/2021
Kế hoạch tái cấu trúc nợ của PIL được đồng thuận, hãng tàu thoát khỏi nguy cơ phá sản
Sea

Successful debt restructuring saves PIL from becoming ‘the next Hanjin’

03/02/2021
Cước biển Á-Âu giảm nhẹ nhờ có thêm container rỗng
Mode

Asia-Europe ocean spot rates sail into calmer waters as boxes are returned

01/02/2021
Hãng tàu CMA CGM sẽ chịu trách nhiệm vận hành bến cảng mới tại cảng biển Alexandria, Ai Cập
Sea

CMA CGM to run new terminal in Alexandria port

01/02/2021
HMM bổ sung tải cho tuyến Bắc Âu
Mode

HMM adds capacity to North Europe trade

27/01/2021
Tại sao vỏ container rỗng đang chất đống ở Úc?
Sea

Explainer: why has the inventory of empty shipping containers built up in Australia?

27/01/2021

PHỔ BIẾN

Tại sao container rơi xuống biển và ai sẽ là người chịu trách nhiệm? Phần 2: Truy cứu trách nhiệm

Why do containership stacks collapse and who is liable?- Part 2: Legal liability

20/06/2020
Tình trạng khan hiếm container đang trở nên nghiêm trọng ở khu vực châu Á

Container Availability drops across Asia prior to Shipping Peak

17/09/2020
Vietnam Airlines sẽ bay quốc tế từ 1/7

Vietnam Airlines plans to re-operate international flights from July 1st

12/06/2020
A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

A Comprehensive Guide on the Shipping Industry’s many Bills of Lading

22/05/2020

NỔI BẬT

Lí do vì sao những chiếc Airbus A380 không được dùng làm máy bay chở hàng

Why Existing Airbus A380s Won’t Be Converted To Freighters

26/04/2020
“Góc quan tài” là gì và nó ảnh hưởng thế nào đến máy bay ?

What Is The Coffin Corner And How Does It Affect Aircraft?

01/10/2020
Maersk to charge fee starting in September for shippers manually booking, amending documents

Maersk to charge fee starting in September for shippers manually booking, amending documents

29/07/2020
Từ ngày 1/8, thực hiện áp dụng mức thuế bảo vệ môi trường

From August 1st, the new environmental protection tariff on jet fuel is officially applied

02/08/2020
  • Home
  • Mode
  • Industry
  • Technology
  • Library
  • Contact us
  • Tiếng ViệtTiếng Việt
Email: info@logistician.org

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.

No Result
View All Result
  • Home
  • Mode
    • Air
    • Sea
    • Road
    • Rail
    • Waterway
  • Industry
    • Aerospace
    • Automotive
    • Chemical
    • Cold Chain
    • E-Commerce
    • Fashion & Lifestyle
    • FMCG
    • Hi-Tech
    • Industrial
    • Luxury Goods
    • Project & Heavylift
  • Technology
  • Library
    • Books
    • Videos
  • Contact us
  • Tiếng ViệtTiếng Việt

© 2021 Copyright The Logistician - Designed by Đông Đô Media.,JSC.