Drewry freight index to start in September

Drewry freight index to start in September    Drewry Shipping Consultants and Cleartrade Exchange plan to start their Europe-based container freight rate index in September, the companies said this week.
   Drewry and Cleartrade in early May announced plans for such an exchange, covering 11 trade routes. They have dubbed it the World Container Index
   '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,' the companies said. 'Significantly, the new index will be the first of its kind to report weekly freight rates on backhaul as well as head-haul routes, and will provide increased efficiencies in hedging strategies for freight users dealing in bulk, commoditized and recovered cargoes.'
   During July and August the index will be made available to a small number of 'lead organizations' for final testing and feedback, prior to the trading on Sept. 1.
   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 Aug. 22.
   The WCI reports spot container freight rates for major east/west trade routes. The index will also 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.
   ' Rotterdam to Los Angeles.
   Only freight rates that are agreed between participants and on which cargo is expected to move will form the assessments, according to the methodology for the index. Rates for quotes, tariffs, estimates, bids or offers are excluded. The spot rates used in the index have a validity of seven days to one calendar month from the date the assessment is reported, and are collected from organizations based in Asia, Europe and North America.
   The rates are for total ocean freight, including bunker adjustment factor and all other applicable surcharges, plus terminal handling charges when it is common market practice to include them, but excluding any surcharges related to inland transportation.