FBX:
$2,502
+2.67%
FBX01:
$2,757
+5.36%
FBX02:
$261
+2.76%
FBX03:
$4,033
+7.34%
FBX04:
$392
+0.26%
FBX11:
$2,978
-0.75%
FBX12:
$462
+0.13%
FBX13:
$4,851
+0.14%
FBX14:
$525
-3.81%
FBX21:
$460
-0.22%
FBX22:
$1,556
+0.32%
FBX24:
$801
-1.79%
FBX26:
$2,285
+0.33%
FBX:
$2,502
+2.67%
FBX01:
$2,757
+5.36%
FBX02:
$261
+2.76%
FBX03:
$4,033
+7.34%
FBX04:
$392
+0.26%
FBX11:
$2,978
-0.75%
FBX12:
$462
+0.13%
FBX13:
$4,851
+0.14%
FBX14:
$525
-3.81%
FBX21:
$460
-0.22%
FBX22:
$1,556
+0.32%
FBX24:
$801
-1.79%
FBX26:
$2,285
+0.33%
Index Linking
Transform Freight Volatility Into Predictability With Index Linking Costs
Stop struggling with contract failures and sudden rate hikes. Join leading shippers who’ve switched to index-linked freight contracts for stable, market-aligned freight rates that actually last.
Trusted by Leading
Supply Chain Experts
Hedge
Model
Negotiate
Hear How Index-Linked Contracts Cut Rate Chaos
Bjorn Vang Jensen, EVP Ocean at Easy Speed International Logistics, highlights the benefits of index-linked contracts – offering cost stability, reducing renegotiation chaos, and freeing up valuable resources to focus on more strategic initiatives by eliminating constant rate discussions that consume valuable time, effort, and millions of man-days.
When you plot all these gains and losses for either side against a stable rate…you’ll actually find that a long-term stable rate contract is a near-perfect hedge.
End the Annual
RFQ Cycle
Replace expensive, time-consuming annual tenders with automated rate updates, while saving resources and keeping rates aligned with the market
Protect Against Market Shocks
Keep your goods moving at sensible prices while avoiding rolled containers, sudden surcharges or force majeures and impact from events like Red Sea crisis or port strikes
Build Better Carrier Relationships
Maintain win-win partnerships that avoid industry shocks or contentious annual – or even quarterly – negotiations.
Everything You Need to Start Index Linking
Frequently Asked Questions About Index Linking
What is Index Linking?
Index linking is an alternative or a way to augment existing annual contracts by automatically adjusting freight rates based on reliable market indexes like the FBX (ocean) or FAX (air). Instead of fixed rates, contracts use a formula, like “97% of FBX01” – that can update on a monthly or quarterly basis. This means rates stay aligned with market conditions, eliminating the need for complex annual negotiations or constant contract revisions.
How does it protect against market volatility?
Really well. When market disruptions hit – whether it’s port strikes, geopolitical issues, or capacity crunches – index linking ensures rates adjust naturally with the market. This prevents contract breaches and cargo rolling that often occur with fixed rates. You can also add ceiling and floor rates to maintain predictability while still benefiting from market alignment.
What are the advantages over traditional fixed rates?
There are a few advantages. Index linking saves a lot of time and money on annual tender processes, and can improve carrier relationships since neither side feels mistreated by market swing. It can also prevent the need for excessive surcharges. Prices can fluctuate more than fixed rates but this can be managed through hedging options and the long-term stability often outweighs short-term variations.
Why is FBX considered reliable for Index Linking?
FBX is BMR-compliant and administered by the Baltic Exchange, processing millions of spot ocean price points monthly. It’s trusted by major exchanges like CME and SGX for derivatives trading, and provides comprehensive coverage across 12 core trade lanes. The index includes real-time data on spot FAK rates and includes relevant surcharges and BAF adjustments. It’s been trusted by everyone from top BCOs to the White House and the World Bank.
What’s the connection to freight hedging?
Index linking can be paired with hedging (like Forward Freight Agreements) to provide additional protection against rate spikes. Think of it as “insurance” against dramatic price changes – something many finance departments already use for currencies and commodities. This combination provides both market alignment and budget certainty.
