Daily Tip: Freightos Baltic Daily Index (FBXD)

FreightWaves Customer SuccessDaily Tips

Did you know? You can monitor spot prices for 40-foot ocean containers across 12 major maritime lanes.

Each day we’ll send you a tip designed to guide you to becoming a SONAR expert. If you have any questions, please contact your Customer Success Representative or email the team at cs@freightwaves.com.

Freightos Baltic Daily Index (FBXD) – The Freightos Baltic Daily Index measures the daily price movements of 40-foot containers in 12 major maritime lanes. It is expressed as an average price per 40-foot container (in US$). This index is the world’s only ocean container pricing index that is reported daily.

Freightos Baltic Daily Index in TreeMap feature (y/y% change)

Freightos Baltic Daily Index TreeMap view

In the TreeMap above, SONAR users can view the Freightos Baltic Daily Index price for a 40-foot container in the spot market across all 12 major ocean trade lanes. 

Analysts: The FBXD is a very good indicator of freight volumes (demand) moving in the selected maritime lanes and to subsequent port cities. This can often be a leading indicator of whether demand for ocean freight is increasing or decreasing across a given trade lane. 

Carriers: Linking a long-term contract price to a verified and objective index provides carriers a solid benchmark rate that keeps forwarders/NVOCCs from underpaying or going off-contract when prices drop.

Brokers: By monitoring the average price per 40-foot container in the spot market, brokers can know whether they are overpaying if prices drop, and can have confidence that they are paying the market rate (or better than the market rate) should prices climb.  

Shippers: By monitoring the average rate for a 40-foot container in the spot market, shippers can better understand whether they are overpaying or getting a competitive price for their containers. Shippers can also use the index to make more educated routing decisions – whether to route their shipments from the origin port to the North America West Coast or to route them from the origin port to the North America East Coast.  

Use the Freightos Baltic Daily Index to better understand ocean freight demand in a given trade lane. Since the majority of freight moving in the U.S. originates overseas and then is distributed through freight networks across the U.S., seeing a major price increase from China to the West Coast of North America, for instance, is a good indicator that Los Angeles freight volumes will increase (with a lag of a few weeks) and likely means that demand will increase throughout the entire market. 

The difference between the China to West Coast price and the China to East Coast price tells you the value of shipping in a container or shipping on land. If there is low capacity or high contract/spot prices via rail or truck on land, shippers have the option to ship through the Panama Canal to the East Coast.

1) Click on Tree Map to view the Freightos Baltic Daily Index across all 12 major maritime lanes and the percentage changes over time. 

  • Squares that are larger indicate a higher US$ amount for the spot market rate on that particular trade lane. 
  • Squares that are shaded a brighter color of green indicate a positive percentage change over the specified time frame (prices rising), while squares shaded red indicate a negative percentage change over that same time frame (prices declining). 

2) Click Chart to view the historical trends and changes in the Freightos Baltic Daily Index.

Pro Tip: Use FBXD.PANA (Panama Spread) to keep track of the spread between 40-foot container rates from China to North America East Coast vs. China to North America West Coast. As the spread decreases, shippers may find it more attractive to ship their freight through the Panama Canal to the North American East Coast.  

If you have questions about the Freightos Baltic Daily Index (FBXD), please contact us at cs@freightwaves.com. 

Happy Hauling,

FW Team