What is it?
The Freightos Indices measure the weekly price movements of 40 foot containers in 12 major maritime lanes. It is expressed as an average price per 40 ft. container.
In addition to average weekly prices, the difference between FBX.CNAW and FBX.CNAE is offered as FBX.PANA. This is the price differential between shipping a 40 foot container from China to the North American West Coast and the North American East Coast. i.e. FBX .CNAW = $1200 and FBX.CNAE = $2200. FBX.PANA = $1000.
Who is interested?
Anyone that deals with freight coming in from overseas, or wants to see how demand overseas will predict volumes at major US ports: Carriers, Shippers, Brokers, Drayage providers.
How are lanes designed?
While the container lanes are based on origin and destination pairs, the lanes are different than the truck city pairs and therefore have different naming conventions. They are:
A user wants to see container prices from China to the North America West. The ticker would be: FBX.CNAW
What does it tell me?
The FBX indices are very good indicators of freight volumes moving in the selected maritime lanes and the subsequent port cities. A lot of freight originates overseas and then disseminates into freight networks across the country. Seeing a major price increase from China to the West Coast of North America, for instance, is a good indicator that Los Angeles freight volumes will increase (with a few week lag) and likely means that demand will increase throughout the entire market.
The cost difference between the China West Coast price and the China to East Coast price tells you the value of shipping on a container versus shipping on land. If there is low capacity via rail or truck on land shippers now have the option to ship through the Panama Canal to the East coast.