Index-Linked Container Contracts Webinar

Press Release
Tuesday, November 13, 2012

Drewry & the World Container Index arrange an educational webinar on 5th December 2012 to explain how Index-Linked Container Contracts work
.

The webinar will examine the causes of recent container freight rate volatility and how index-linked contracts can help mitigate the impacts of such instability. It will explain how these new contracting arrangements work with reference to current models in use and will summarise the extent of industry adoption thus far. 



Persistent freight rate volatility is forcing container shipping to consider alternative forms of shipper-carrier contracting arrangements that enable the contract rate to vary relative to an external index. 



“Freight rate volatility will continue to be a feature of container shipping for some time to come,” added Dixon. “How industry participants adapt to this change of circumstances will be fundamental to the future of container freight contracting and shipper-carrier relations.

”

Enabling the contract rate to vary relative to an external index serves to reduce any possible divergence between contract and spot rates, so addressing the drivers of contract default. Meanwhile, the resultant exposure to wider market volatility can be mitigated through the application of dampeners, floor and ceiling limits or hedging.



Adoption is growing rapidly with the continuing predominance of freight rate volatility. Drewry now estimates that over 100 index-linked contracts have been signed on the Asia-Europe trade so far this year and is expecting to see a significant rise in uptake on the transpacific trade in the upcoming 2012/13 contracting season.

To register for the webinar click here and follow the onsite links.

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

China Passes New Pollution Law, Will Cap Coal Consumption

Legislators have approved amendments to China's 15-year-old air pollution law that grant the state new powers to punish offenders and create a legal framework to cap coal consumption,

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

TASI Acquires SignalFire Telemetry

TASI HOLDINGS INC. announced today it has completed the acquisition of all shares of SignalFire Telemetry, located in Hudson, Massachusetts.  This new acquisition

Education/Training

Eniram Expands Training Services, Onboard and Onshore

Eniram Ltd, a provider of energy management technology and analytic services to the shipping industry, today announced the addition of in-depth training services

The Maritime Person of the Year

The Massachusetts Maritime Academy’s annual salute to ‘the person of the year’ this year spotlights McAllister Towing and Transportation Co. and its leadership team.

USN Observes Suicide Prevention Month

While September is Suicide Prevention Month, subject matter experts from the 21st Century Sailor Office's Suicide Prevention Office, OPNAV N171, say their goal

Logistics

Gazprom, OMV Meet on Establishing Nord Stream JV

At a Meeting held at the Gazprom headquarters between Alexey Miller, Chairman of the Company's Management Committee and Rainer Seele, Chairman of the Executive Board of OMV,

Migrant Boat Sinks off Libya; 200 Feared Dead

A boat packed with mainly African migrants bound for Italy sank off the Libyan coast on Thursday and officials said up to 200 might have died. A security official in the western town of Zuwara,

Oil Steadies as Equities Rally

Recovering stock markets boost oil prices; U.S. crude on track for first weekly gain in nine weeks. Oil prices steadied on Friday after bouncing back from six-and-a-half-year

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pod Propulsion Port Authority Salvage Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.6521 sec (2 req/sec)