The World Container Index (WCI), the first Europe-based assessment of container freight rates, went live as scheduled on September 1, 2011, reported Drewry Shipping Consultants, a research and consultancy specialist.
The first published World Container Index freight rates showed increases on some major routes. The spot container freight rate index on the Shanghai-Genoa route was $2,270 per 40-foot container in the first week of September, up 8 percent on the assessment made in the first week of August.
On the Shanghai-New York route, spot rate was $3,477 per 40-foot container, up 11 percent over the first week of August. The WCI rate indices for the backhaul routes from Europe and the US to China have remained stable in the past month.
The full launch of the WCI followed a long period of development, capped by several weeks of external testing with selected shippers, lines and forwarders, Drewry said.
Data is gathered from actual transactions reported by panelists in the U.S., Europe, and Asia, representing a cross-section of users in the container freight market.
“We expect trading of container derivatives against the WCI index to start this month,” said Philip Damas, of Drewry, one of the WCI joint venture partners. “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 is the only weekly assessment of container freight rates to provide price transparency on backhaul and headhaul routes, providing risk management and hedging opportunities for all freight users from shippers of commoditized or recovered goods to those moving high-value finished goods.
The WCI reports agreed spot container freight rates for major East West trade routes and consists of 11 route-specific indices representing individual shipping routes and a composite index.
The WCI is a 50-50 joint venture between Drewry and Cleartrade Exchange, an electronic marketplace for OTC freight and commodity swaps.
Photo by neajjean
