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

Legal

Harper Government Invests in Naufrage Harbor

The Honorable Gail Shea, Minister of Fisheries and Oceans, announced today an investment to improve safety and working conditions for fishermen at Naufrage Harbor, Prince Edward Island.

Ondimar Firms Order Suezmax Quartet at Navantia

Navantia and Maritime Transport Ondimar LDA (shipping company Ibaizabal Group) today ratified the contracts signed in late June and the financial structure for

Contship Italia Signs Iran MoU

Contship Italia Spa, also on behalf of Eurogate GmbH & Co. KGaA, KG, recently signed a strategic Memorandum of Understanding (M.O.U.) with Sina Port & Marine Company (SPMCO),

Education/Training

WKCTC to Host Open House for ILM Institute

West Kentucky Community and Technical College will host an open house and ribbon cutting for the Inland Logistics and Marine Institute August 10 from 4 ­– 6 p.

NAO Expedition to Study Walruses

From Naryan-Mar complex expedition started "Investigation Atlantic walrus habitat" for the study of animal southeastern Barents Sea. The expedition of seven

Korean Registry Okays Transas ECDIS

Transas, one of the world's leading providers of integrated navigation solutions, received ECDIS type-approval from the Korean Registry (Korea Marine Equipment Research Institute),

Logistics

ASEAN: China Shuns South China Sea Dialogue

Chinese Vice Foreign Minister Liu Zhenmin said on Monday the disputed South China Sea should not be discussed at a meeting of the Association of Southeast Asian Nations (ASEAN).

Contship Italia Signs Iran MoU

Contship Italia Spa, also on behalf of Eurogate GmbH & Co. KGaA, KG, recently signed a strategic Memorandum of Understanding (M.O.U.) with Sina Port & Marine Company (SPMCO),

First LNG Shipment from Donggi Senoro in Indonesia

Indonesia’s $2.8 billion Donggi-Senoro LNG project has shipped its first cargo of the chilled gas on August 2, Mitsubishi Corp, which holds about 45 percent of the project, stated.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
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: 0.1127 sec (9 req/sec)