Freight indices
Freight indices are the primary market-signal instruments through which shipping charter rates are tracked, forecast, and traded. Officers and shore-side commercial staff read these indices daily. Journalists cite them in every shipping-market story. Understanding what each index measures + how it is compiled is essential context for any commercial conversation about shipping.
Dry-bulk indices
Baltic Dry Index (BDI)
The headline dry-bulk index. Published by Baltic Exchange (London) daily. Composite of four sub-indices: BCI (Capesize), BPI (Panamax), BSI (Supramax), BHSI (Handysize). Broker-panel poll of representative time-charter and voyage-charter rates on 25 key trade routes.
Range history: All-time high 11,793 (May 2008 iron-ore + coal boom). Low 290 (Feb 2016 China commodity slump). 2024 range: ~1,000-2,500. Serves as a leading indicator for global commodity demand.
BCI / BPI / BSI / BHSI sub-indices
Each tracks its ship-size segment on canonical trade routes. BCI on Cape routes (China → West Africa iron ore, Brazil → China iron ore). BPI on Panamax coal + grain routes (US Gulf → Japan, Australia → China). BSI on Supramax minor-bulk (bauxite, grain, cement). BHSI on Handysize.
Container indices
HARPEX (Harper Petersen Charter Rates Index)
Published weekly by Harper Petersen (Hamburg). Composite of container-ship charter rates across 7 size segments (700 TEU to 8,500 TEU). Reference for the container-ship time-charter market.
Drewry WCI (World Container Index)
Weekly composite of container spot-freight rates on 8 major routes (Shanghai → LA/Rotterdam/Genoa, LA → Shanghai, etc.). Published by Drewry Maritime Research. Widely quoted in shipper + retailer press because it reflects spot cargo rates directly.
Range history: ~$1,400/40ft baseline pre-2020; peaked $10,377/40ft in Sep 2021 (COVID demand + supply chain congestion); normalised to $1,500-3,000 in 2023-24 before spiking again to $5,900 mid-2024 during Bab-el-Mandeb Cape rerouting.
SCFI (Shanghai Containerised Freight Index)
Weekly composite of Chinese export container freight rates from Shanghai across 15 routes. Published by Shanghai Shipping Exchange. Reference for the container-freight-derivative market.
Tanker indices
Baltic Dirty Tanker Index (BDTI)
Composite crude-tanker freight rate index. VLCC + Suezmax + Aframax key routes. Published daily by Baltic Exchange.
Baltic Clean Tanker Index (BCTI)
Composite product-tanker freight rate index. MR + LR1 + LR2 key routes. Published daily by Baltic Exchange.
Worldscale (WS)
Not an index but a rate-quoting SYSTEM used in tanker chartering. Each January, a joint Worldscale Association (London + NY) publishes "flat rates" ($ per tonne) for hundreds of tanker routes reflecting the year's notional cost + return baseline. Actual charters are then quoted as a percentage of the flat rate — e.g., "WS 85" means 85% of the flat rate.
Reading rates: WS 100 approximates "economic" return. WS < 60 means poor market. WS > 150 means very strong. WS 300+ is exceptional (last seen briefly in 2020 tank-storage arbitrage).
Interaction between indices
Freight indices interact in predictable + traceable ways:
- Container ↔ dry bulk decoupling. Container demand tracks consumer imports; dry bulk tracks commodity + energy. Prolonged divergence (as in 2020-22 COVID container spike) reflects fundamental sector differences.
- Tanker ↔ OPEC + refinery capacity. BDTI + BCTI track OPEC production quotas + global refinery utilisation. Sanctions events (Iran, Russia) create shadow-fleet + rate volatility.
- Cape ↔ Panamax spread. Wide BCI-BPI spread indicates iron-ore + coal demand concentration. Narrow spread suggests broader commodity distribution.
- Suez blockage / Red Sea disruption. All rate indices lift when major choke points are constrained. 2021 Ever Given brief spike; 2023-24 Houthi campaign sustained spike in WCI + SCFI + Suez-affected tanker segments.
Derivatives + forward markets
Freight-derivative markets (Baltic Exchange FFAs — Forward Freight Agreements) trade forward BDI + tanker + container rates. Provides hedging for shipowners + charterers + speculators. Liquidity concentrated in Cape + Panamax + VLCC forward markets. Cleared through Nasdaq OMX Clearing (Oslo) + Singapore Exchange.
See also
- · Charter party forms — the underlying contract.
- · Laytime + demurrage.
- · Bab-el-Mandeb — 2023-24 rate spike driver.
- · Shipping companies directory.
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