MANILA, Philippines — Drewry Shipping Consultants and the Cleartrade Exchange will launch the World Container Index (WCI), the first Europe-based assessment of container freight rates and index production in September 2011.
The index will provide a new and important facility for the global market to hedge their freight rate risk and see major improvements in forward price discovery through the container derivatives market.
Drewry said the new index will be the first of its kind to report weekly freight rates on backhaul as well as headhaul routes and will provide increased efficiencies in hedging strategies for freight users dealing in bulk, commoditized and recovered cargoes.
In August, the index will be made available to a small number of lead organizations for final testing and feedback prior to launch for trading on 1st September, 2011.Contracts will be available with at least one clearing house at or soon after the launch date and subscriptions to the index will be available from 22nd August, 2011
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 has also confirmed that it will collect and publish weekly market assessments for the following routes:
Shanghai to Rotterdam; Rotterdam to Shanghai; Shanghai to Genoa; Genoa to Shanghai; Shanghai to Los Angeles; Los Angeles to Shanghai; Shanghai to New York; New York to Rotterdam; Rotterdam to New York; Los Angeles to Rotterdam and Rotterdam to Los Angeles.
The WCI assessments are reports of the value of agreed freight rates between major container lines and shippers or freight forwarders.
read more at http://www.mb.com.ph/articles/329968/world-container-index-launched-september