'The index will report individual market prices on major east/west container shipping routes,' the companies said. 'Initially prices for 11 individual routes and a composite index will be reported each week. These will cover trade in both directions between Asia, North America and Europe. The index data will be generated by Drewry's team of industry analysts from multiple market sources, including carriers and intermediaries, and published by WCI Marketing Services Ltd., a 50-50 joint venture with Cleartrade Exchange, the leading electronic marketplace for OTC freight and commodity swaps.
'Drewry and Cleartrade Exchange believe that the new market price indices fill an important gap in the market, offering wide geographical scope as well as the inclusion of 'backhaul' routes from an independent trusted research house.'
The companies estimate volume on the 11 trades account for 37 million TEUs.
'The potential for hedging and trading that freight risk is obvious,' said Cleartrade Managing Director Richard Baker.
The index will be published Thursdays.
