Xeneta launches index-linked contract simulator to tackle container market volatility

Xeneta has launched an index-linked contract (ILC) simulator to help shippers navigate ocean freight container market volatility and end procurement inefficiency. 

The new ILC simulator – now available in the Xeneta platform – allows shippers to compare traditional fixed-rate contracts with ILCs using sample corridor data or their own historical ocean container freight rates. 

The simulator is an important first step towards index-linked contracting, which is rising in prominence as shippers and logistics providers try to prevent long-term agreements being torn up, or regularly renegotiated, in the wake of disruptions such as Covid-19, the Red Sea crisis and the US-Chine trade war.