One notion that every trader in the international shipping industry knows about profit-making is that it is never constant! With the constantly changing freight rates and uncertain market conditions, a trader has to be active in cutting costs and channelising his resources to make the most of his deals! In such a scenario, the traders plan their freight shipments well ahead of time. And for doing so, the world container index can be a helpful tool. Let us understand what it is and how it makes a difference.
What Is the World Container Index?
The container prices and shipping freight rates keep changing constantly. During the peak season of the year, the demand for containers is high. But with a limited supply of containers and shipping vessels, the prices can rise thrice the regular rates. The world container index delivers the frequent, updated and independent data of the container market.
The concerned authorities, shipping companies, and regulators keep publishing the market trends. The index is available in numerical, graphical and percentage values for a better understanding of the subject. One can observe the graph, comprehend the possible scenario and then plan his future shipments accordingly! This index may not be much common to the budding traders in the industry, but the experienced ones know its significance very well.
Uses and Importance of the World Container Index
The world container index serves a lot more than mere data to the traders who know how to make the most of it! More than importers, it is crucial for the exporters to know about it well ahead of time. This activity will keep them ahead of their competitors in making business strategies.
- The world container index offers a detailed view of the weekly assessment of container freight rates and costs across different shipping lines, a record of all the historical price movements and a daily price estimation as well! The traders can use this information to assess the market conditions and plan their lined-up shipments by booking the container services.
- As the index is published on global websites offering open access to all the companies, individual entities and organisations, it brings transparency to the market mechanism. There is no passage through which a shipper can misuse his position by giving out the wrong data or information to the traders.
- With the container index, the traders get the opportunity to discover future price rates and master risk management. This facility was not available to them before publishing the index. All one has to do is learn how to assess the index properly with the right judgement.
- After assessing the index, the exporters can also use it to their advantage by setting the best future price in their export quotation or Proforma invoice. The better the price, the higher are the chances of an exporter to crack the deal!
- The importance of the world container index is especially for those traders who are new in the industry and trying to expand their chain of supply by roping in importers across the world. By giving out the best prices without compromising with the profit margin, they can grow stronger in this arena.
The shipping industry is full of uncertainties and several factors that keep influencing the market trends and prices. While one has no control over these inevitable changes in the freight rates, sneaking out at the right time to book the shipments is the best option! By using the container index, it is possible to do so. Traders should keep checking it weekly on reliable websites. Also, the shipping service providers can provide the latest updates and information through shipping blogs and trade journals. Keep evaluating the market updates, keep reading and make the most of the resources!