Freightos® Introduces Index Linking for Freight Contracts, Bringing Global Trade to the Digital Age
Freightos (CRGO) has launched the Freightos Index Linking Toolkit within its Terminal market intelligence solution, introducing dynamic contract pricing for freight rates. This innovative system automatically adjusts to market fluctuations, addressing common issues with fixed-price contracts such as renegotiations and cargo rolling.
The toolkit leverages the Freightos Baltic Index (FBX®) for container shipping and Freightos Air Index (FAX) for air cargo, both based on live transactional data. When combined with hedging via freight future agreements on the CME and SGX, this solution enables carriers, forwarders, and BCOs to reduce pricing exposure and improve efficiency.
Industry expert Bjorn Vang Jensen endorses the approach, noting that long-term stable rate contracts serve as effective hedges. The system aims to bring predictability to freight procurement while reducing the time spent on contract negotiations.
Freightos (CRGO) ha lanciato il Freightos Index Linking Toolkit all'interno della sua soluzione di intelligence di mercato Terminal, introducendo una tariffazione dinamica per i costi di trasporto. Questo sistema innovativo si adatta automaticamente alle fluttuazioni del mercato, affrontando problemi comuni legati ai contratti a prezzo fisso, come le rinegoziazioni e il rinvio delle spedizioni.
Il toolkit sfrutta il Freightos Baltic Index (FBX®) per il trasporto marittimo in container e il Freightos Air Index (FAX) per le spedizioni aeree, entrambi basati su dati transazionali in tempo reale. Quando combinato con strategie di copertura tramite contratti future sui costi di trasporto presso il CME e il SGX, questa soluzione consente a vettori, spedizionieri e BCO di ridurre l'esposizione ai prezzi e migliorare l'efficienza.
L'esperto del settore Bjorn Vang Jensen approva l'approccio, sottolineando che i contratti a lungo termine con tariffe stabili fungono da efficaci coperture. Il sistema mira a portare prevedibilità negli acquisti di trasporto, riducendo il tempo dedicato alle negoziazioni contrattuali.
Freightos (CRGO) ha lanzado el Freightos Index Linking Toolkit dentro de su solución de inteligencia de mercado Terminal, introduciendo precios de contrato dinámicos para las tarifas de flete. Este sistema innovador se ajusta automáticamente a las fluctuaciones del mercado, abordando problemas comunes con los contratos a precio fijo, como las renegociaciones y la acumulación de carga.
El toolkit aprovecha el Freightos Baltic Index (FBX®) para el transporte marítimo en contenedores y el Freightos Air Index (FAX) para la carga aérea, ambos basados en datos transaccionales en tiempo real. Cuando se combina con coberturas a través de contratos de futuros de flete en el CME y el SGX, esta solución permite a transportistas, transitarios y BCOs reducir la exposición a precios y mejorar la eficiencia.
El experto de la industria Bjorn Vang Jensen respalda el enfoque, señalando que los contratos de tarifas estables a largo plazo sirven como coberturas efectivas. El sistema tiene como objetivo aportar previsibilidad a la adquisición de fletes, al tiempo que reduce el tiempo dedicado a las negociaciones contractuales.
Freightos (CRGO)는 터미널 시장 정보 솔루션 내에서 Freightos Index Linking Toolkit을 출시하여 화물 요금에 대한 동적 계약 가격 책정을 도입했습니다. 이 혁신적인 시스템은 시장의 변동에 자동으로 조정되어, 재협상 및 화물 이월과 같은 고정 가격 계약의 일반적인 문제를 해결합니다.
이 툴킷은 실시간 거래 데이터를 기반으로 하는 Freightos Baltic Index (FBX®)를 컨테이너 해상 운송에, Freightos Air Index (FAX)를 항공 화물에 활용합니다. CME와 SGX에서의 화물 선물 계약을 통한 헤징과 결합될 때, 이 솔루션은 운송업체, 포워더 및 BCO가 가격 노출을 줄이고 효율성을 향상시킬 수 있게 합니다.
업계 전문가 Bjorn Vang Jensen은 장기적으로 안정적인 요금 계약이 효과적인 헤지 역할을 한다고 지적하며 이 접근 방식을 지지합니다. 이 시스템은 화물 조달의 예측 가능성을 높이고 계약 협상에 소요되는 시간을 줄이는 것을 목표로 합니다.
Freightos (CRGO) a lancé le Freightos Index Linking Toolkit dans sa solution d'intelligence de marché Terminal, introduisant une tarification dynamique des contrats pour les tarifs de fret. Ce système innovant s'ajuste automatiquement aux fluctuations du marché, abordant les problèmes courants liés aux contrats à prix fixe, tels que les renégociations et le report des cargaisons.
Le toolkit s'appuie sur le Freightos Baltic Index (FBX®) pour le transport maritime de conteneurs et le Freightos Air Index (FAX) pour le fret aérien, tous deux basés sur des données transactionnelles en temps réel. Lorsqu'il est combiné avec des couvertures via des contrats à terme sur le fret au CME et au SGX, cette solution permet aux transporteurs, transitaires et BCO de réduire leur exposition aux prix et d'améliorer leur efficacité.
L'expert de l'industrie Bjorn Vang Jensen approuve l'approche, notant que les contrats à long terme avec des tarifs stables servent d'efficaces couvertures. Le système vise à apporter prévisibilité à l'approvisionnement en fret tout en réduisant le temps consacré aux négociations contractuelles.
Freightos (CRGO) hat das Freightos Index Linking Toolkit innerhalb seiner Terminal-Marktforschungslösung eingeführt, das dynamische Vertragspreise für Frachtraten bietet. Dieses innovative System passt sich automatisch an Marktschwankungen an und löst häufige Probleme bei Festpreisverträgen, wie z.B. Neuverhandlungen und das Verschieben von Fracht.
Das Toolkit nutzt den Freightos Baltic Index (FBX®) für den Containertransport und den Freightos Air Index (FAX) für Luftfracht, die beide auf aktuellen Transaktionsdaten basieren. In Kombination mit Hedging über Frachtterminverträge an der CME und SGX ermöglicht diese Lösung Transportunternehmen, Spediteuren und BCOs, ihre Preisrisiken zu reduzieren und die Effizienz zu steigern.
Branchenspezialist Bjorn Vang Jensen unterstützt den Ansatz und merkt an, dass langfristige stabile Tarifverträge als effektive Absicherungen fungieren. Das System zielt darauf ab, Vorhersehbarkeit bei der Beschaffung von Frachten zu schaffen und die Zeit für Vertragsverhandlungen zu reduzieren.
- Introduction of innovative dynamic pricing system that could reduce contract renegotiations
- Integration with major exchanges (CME, SGX) for hedging opportunities
- System based on comprehensive live transactional data through FBX® and FAX indexes
- None.
Insights
The launch of Freightos' Index Linking Toolkit represents a strategic advancement in freight contract management that could significantly impact the company's market position and revenue potential. This innovation addresses several critical industry pain points:
- Traditional fixed-price contracts often lead to disputes and renegotiations, creating operational inefficiencies and unstable business relationships. The new dynamic pricing model could reduce these friction points, potentially improving customer retention and market share.
- Integration with major exchanges (CME and SGX) for hedging capabilities positions Freightos as a comprehensive solution provider, potentially creating new revenue streams through increased platform adoption and possible licensing opportunities.
- The toolkit's foundation on Freightos' proprietary indexes (FBX and FAX) strengthens the company's data moat and market intelligence leadership, particularly valuable as the industry moves toward data-driven decision-making.
The timing is particularly strategic, as the industry grapples with increased contract renegotiation frequency due to market volatility. By automating price adjustments and reducing manual intervention, this solution could significantly improve operational efficiency for all parties involved. The endorsement from industry veteran Bjorn Vang Jensen adds credibility to the solution's practical value.
From a competitive standpoint, this development strengthens Freightos' position as a market innovator and could accelerate the industry's digital transformation. The company's first-mover advantage in providing comprehensive index-linking tools could lead to increased platform adoption and market share gains, particularly among larger enterprises seeking to optimize their freight management processes.
However, success will largely depend on user adoption rates and the toolkit's ability to demonstrate tangible cost savings and efficiency improvements. The initiative's impact on Freightos' financial performance will likely become more apparent in subsequent quarters as usage patterns emerge and potential network effects materialize.
Index-linking transforms how importers, exporters, freight forwarders and carriers manage stable, reliable and persistent freight contracts while saving time and avoiding excess charges. Already common in industries like bulk shipping, index-linking is rapidly gaining traction in containerized shipping and air cargo, signaling a pivotal shift in freight contract management. Freightos' toolkit represents its commitment to digital transformation, driving the industry forward by enabling adaptive pricing models that set a new standard for resilience and efficiency in global trade.
Freightos' research consistently shows that fixed-price contracts suffer from disadvantages like carriers renegotiating rates or rolling cargo when rates increase or importers and exporters renegotiating when rates drop. Index-linking dynamically aligns rates with the market, dramatically reducing contract renegotiations while ensuring competitive pricing and consistent service.
The index-linking is based on Freightos' industry leading indexes, the Freightos Baltic Index (FBX®), a BMR-compliant global container index based on billions of transactional data points, and the Freightos Air Index (FAX) for air cargo. Both are based on live, aggregate sources used for actual quoting and booking.
When combined with hedging via freight future agreements (FFAs) on the Chicago Mercantile Exchange (CME) and the Singapore Exchange (SGX), carriers, forwarders and BCOs can reduce freight pricing exposure and improve internal efficiency.
"When you plot all these gains and losses for either side against a stable rate...you'll actually find that a long-term stable rate contract is a near-perfect hedge," said Bjorn Vang Jensen, EVP Ocean at Easy Speed International Logistics. Van Jensen also has extensive shipper experience as Vice President of Global Logistics at Electrolux. "Shippers are always looking for better ways to procure freight, secure space, and, most importantly, bring some predictability to the process. Index-linked contracts do just that—they help both sides get a good deal while freeing up time and energy for more productive work. Instead of spending months in back-and-forth negotiations that eat up thousands of hours and rarely lead to anything lasting, index-linking offers a smarter, more efficient way forward."
"Logistics teams, already stretched thin, are now renegotiating freight contracts quarterly instead of annually due to ongoing disruptions s. In this volatile environment, ocean freight index linking is becoming more We're setting out to make this as accessible as possible with trusted indexes, sample legal clauses, index pricing toolkit and more."essential than ever," said Anton Barr, VP Market Data at Freightos.
About Freightos
Freightos® is the leading vendor-neutral global freight booking platform. Airlines, ocean carriers, thousands of freight forwarders, and well over ten thousand importers and exporters connect on Freightos, making world trade faster, more efficient and more resilient.
The Freightos platform digitizes the trillion dollar international freight industry, supported by a suite of software solutions that span pricing, quoting, booking, shipment management, and payments for global businesses of all shapes and sizes. Products include the Freightos Marketplace, WebCargo, WebCargo for Airlines, 7LFreight by WebCargo, Shipsta by Freightos, and Clearit.
Freightos is a leading provider of real-time industry data via Freightos Terminal, which includes the world's leading spot pricing indexes, Freightos Air Index (FAX) for air cargo and Freightos Baltic Index (FBX) for container shipping.
Media Contact
Tali Aronsky
PR Lead, Freightos
tali.aronsky@freightos.com
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SOURCE Freightos, Limited
FAQ
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