Container Turmoil Leaves Large Spreads Between Spot Freight Assessments

by Ship & Bunker News Team
Friday August 13, 2021

The recent disruption to container shipping and surging freight rates have led to large disparities between spot freight rate assessments.

Differing methodologies and definitions of the spot market are leading to discrepancies, according to research from consultancy Vespucci Maritime.

"The question 'what is the spot rate' for a given trade becomes difficult to answer as it depends on when the cargo is going to move, the level of 'premium service' chosen, the shipper-carrier relationship as well as the amount of surcharges included," Lars Jensen, CEO of Vespucci Maritime, said in a LinkedIn post on Friday. 

"The different index providers measure different things.

"They do not include the same customer mix, they do not include the same mix of surcharges, they do not include the same definition or inclusions of spot versus short-term contract."

The research notes the following spot $/FFE container freight rate assessments for August 6 on the Asia to North Europe route:

  • SCFI: 14.836
  • WCI: 13.653
  • FBX: 13.819
  • XSI: 13.663
  • Platts: 17.000

And the following assessments for the Asia to US West Coast route:

  • SCFI: 5.555
  • WCI: 10.322
  • FBX: 18.555
  • XSI: 6.758
  • Platts: 7.900

"Just because the indices diverge, it does not mean that one is 'correct' and the others are 'wrong'," Jensen added.

"But the onus is on the shipper to understand which index most closely resemble their own business mix."

Ship & Bunker News Team
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