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Secret: container freight rate changes, look at the WCI, SCFI index is enough!
Jan 29,2024
As freight forwarders, we can see the real-time freight rates of fresh and hot containers every day, and we generally don't look at those freight rates again. But the advantage of these indices is that you can see the changes in freight rates over a period of time relatively intuitively.
Among them, the World Container Freight Index (World Container Index, WCI) and the Shanghai Export Container Freight Index (Shanghai Containerized Freight Index, SCFI) are two indicators commonly used in the domestic market to track spot prices.
World Container Index (WCI)
The World Container Index (WCI) is compiled by Drewry (Drewry), a maritime consultancy in London.
WCI Latest Freight Index
Data source:
Freight rates come from eight forwarders in Asia, Europe and North America. Druri emphasizes theseSpot freight rate The actual transaction price given by the shipowner to the freight forwarder, I .e. the real price.Not a preliminary offer.
Out of confidentiality, Drewry did not release the names of the eight forwarders. However, these 8 freight forwarders are carefully selected. There are 3 Global (global), 2 in North America and 3 in Asia, of which 2 are Global NVO with an annual volume of more than 1 million TEU, GobalNVO1 are 500000 TEU-1 million TEU, and 4 are regional and local freight forwarders with a volume of 25000 TEU to 500000 TEU.
As can be seen, Dreary attaches great importance to the representativeness of freight rates: the size of the freight forwarder (which determines the level of freight rates) and the region (which represents the route) are taken care.
Calculation method:
Druri's freight index covers eight major east-west routes in the world: Shanghai-Rotterdam, Rotterdam-Shanghai, Shanghai - Genoa, Shanghai-Los Angeles,Los Angeles-Shanghai, Shanghai - New York,New York-Rotterdam, Rotterdam -New York, covering the European line, trans-Pacific line and trans-Atlantic line.
Each route selects 4 shipping companies, first calculates the average freight rate of a shipping company on each route, and then calculates the average freight rate of the 4 shipping companies to arrive at the average freight rate of the route. The eight routes are calculated according to a certain weighted sum, which is the Druri World Container Freight Index.
Drewry's calculation includes in stock contracts, short-term contracts, and both outbound and return journeys for each major route. The European and North American lines account for 70% of the WCI, but there are no Asian and South American lines, so it is aAn index that better reflects changes in freight rates on European and American routes.
Shanghai Export Container Freight Index (Shanghai Containerized Freight Index, SCFI)
Shanghai Export Container Freight Index (Shanghai Containerized Freight Index, SCFI) is an index reformed and launched by Shanghai Shipping Exchange to meet the needs of international container freight index derivatives development and improve China's export container freight index system.
SCFI Latest Freight Index
Data source:
Freight rates come from editorial board member companies, and compared to WCL,SCFI's sample includes not only freight forwarding companies but also container shipping companies, reflecting spot prices.
Note: Spot price = base fee surcharge other fees
Surcharge composition: fuel surcharge (BAF/FAF), emergency fuel surcharge (EBS/EBA), currency surcharge (CAF/YAS), peak season surcharge (PSS), war surcharge (WRS), port congestion surcharge (PCS), canal surcharge (SCS/SCF/PTF/PCC), etc.
Excludes terminal operating fees at ports of origin and destination, port facility security surcharges, South China origin surcharges, U.S. automatic customs declaration fees, inland transfer fees, etc.
The members are specifically 22 liner company members (the top 10 shipowners are in it, and there are also some Southeast Asian shipping companies) and 26 cargo owner freight forwarding members (mainly European and Asian freight forwarding)
Calculation method:
There are 13 sub-route market freight rates (index) and comprehensive indexes. The routes cover the main trade flows and export regions of Shanghai's export container transportation, namely Europe, Mediterranean, US West, US East, Persian Gulf, Australia and New Zealand, West Africa, South Africa, South America, Japan Kansai, Japan Kanto, Southeast Asia and South Korea.
SCFI sub-route market freight rates are calculated using the simple arithmetic average method.
The SCFI Composite Index (the one you often see) is calculated using the route-weighted average method. The specific weights are shown in the figure below.
The current average freight rate for each route is divided by the base period average freight rate, multiplied by the route weight and the base period index and summed. The SCFI Composite Index is based on October 16, 2009, with a base index of 1000 points and is generally released every Friday.
Features:
SCFI is a comprehensive freight index, Shanghai as China's largest container export port, SCFI is a barometer to measure the overall export market.Because Europe and the United States account for nearly 60% of the weight, SCFI is greatly influenced by the strength of the European and American markets.
At the same time, SCFI is not a simple freight rate, looking at the index of a particular week alone is not very meaningful, Wow(week over week) week is more meaningful, the percentage change represents the trend of market freight rates. The limitation of the composite index is that it cannot see changes in a specific route.
Both WCL and SCFI reflect to some extent the trend and extent of changes in the level of freight rates in the container market over time, providing a basis for us to formulate the cost of movement of goods and the calculation of transport costs.
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