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Xeneta launches market tracking freight rate system

Freight rate intelligence platform Xeneta has created a new offering called Xeneta Shipping Index (XSI), allowing involved parties to set rates at transparent prices that directly follow market fluctuations.

{mprestriction ids="1,2"}The global ocean freight index uses Xeneta’s neutral database of some 65 million contracted rates crowd-sourced from more than 700 international businesses, covering in excess of 160,000 port-to-port pairings. This is continuously updated with rates tracked across major shipping routes, covering 57 corridors and representing 95 per cent of global intercontinental volumes.

The new index allows stakeholders in the negotiating chain to tie rates to the market, to reduce the number of contract negotiations required.

“Freight rates are dynamic and prone to rapid change, so a shipper traditionally negotiating what they consider to be a fair rate for a long-term ocean freight contract can find that, three months later, they’re paying far in excess or below the actual market rates. This has the very real potential to make their products uncompetitive in the marketplace or risk supply chain disruptions,” said Xeneta CEO Patrik Berglund.

“Similarly for carriers, when the market is low or high, they risk shippers taking their business somewhere else or not living up to their contracts as these are not enforceable. The current situation is not ideal for buyer or seller and neither one has the upper hand.”

“If all parties looking to sign a contract agree to use the index they can secure competitive rates over the long-term, building trust and reliable relationships with one another. What’s more they can save on all the resources, guess work and hassle associated with negotiating.”{/mprestriction}

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