Baltic Exchange and Freightos Group has launched daily spot ocean freight rate indices for 40-foot containers (FEUs) adding real-time, transparent price discovery and risk mitigation into the container freight market.
The Freightos Baltic Index (FBX) has been produced weekly since April 2018 by digital freight platform Freightos, based off of live pricing data from hundreds of global logistics providers.
Covering 12 key trade lanes and based on real data via Freightos and its live digital freight platform, the rates are rolling short term Freight All Kind (FAK) spot tariffs and related surcharges between carriers, freight forwarders and high-volume shippers.
The FBX index is a weighted average of its underlying regional route indices. Each individual index trade lane is represented by five to seven of the major ports of each region.
BIMCO claims the data unlocks the potential to control pricing volatility and will be the foundation for ocean pricing’s evolution towards index-linked contracts.
“With the robust, real-time data, as well as oversight from the Baltic Exchange, the FBX is positioned better than ever to provide a true pulse of the market in one of the world’s largest and most important industries. Container shipping pricing has become volatile and FBX will be the foundation of index-linking and future derivatives which allow carriers, forwarders and imports/exporters to hedge their risk, as is already customary in other industries,” said Freightos CEO Zvi Schreiber.