Airlines rethink strategy as ecommerce to US begins decline
Shippers and forwarders are waiting to see how airlines manage their capacity before locking into ...
© 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 ...
Comment on this article
Walter Kemmsies
June 21, 2024 at 3:24 pmThis 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.