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© Rodjulian

As shippers, carriers and forwarders look to index-linked contracts (ILAs) to mitigate risk to capital amid Red-Sea freight-rate volatility, Matthew Gore, partner at shipping law firm HFW, warned of potential flaws in the system.  

Yesterday, Xeneta revealed that a shipper with an ILA may use 40ft containers (feu) to transport their goods, but their contract is tied to a 20ft equivalent container index (teu). 

It said: “Global ocean trade is dominated by 40ft containers, yet many ILAs benchmark against teu indices ...

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  • Walter Kemmsies

    June 21, 2024 at 3:24 pm

    This is a great opportunity for a Wall Street company to provide 40ft contracts and make it easy to hedge 20ft contracts with 40ft contracts, or vice versa. If anyone is interested in making such a connection, they should contact me.