Know What's Happening in Supply Chain

Advice on Index-Linked Contracts in Ocean Container Shipping and Why You Need Xeneta – Geography and Data Granularity

The blog explains that successful ocean container index‑linked contracts require an index that mirrors the specific trade lanes and geographic scope of a shipper’s routes. Using a mismatched index, such as a Shanghai export benchmark for India‑to‑Europe shipments, can lead to significant cost deviations and contract break‑risk. Xeneta provides granular data across more than 170,000 port‑to‑port pairs and a contract‑simulator to ensure proper index selection. The article illustrates potential losses of up to $200,000 per 1,000 containers when the wrong index is applied.