Cost structure / standard tiers
Rate indices typically report per-FEU (40-foot equivalent unit) spot rates, which shippers compare against their own contracted or quoted rates.
| Index Component | Typical Reporting Range (Asia-West Coast, illustrative) |
|---|---|
| Base ocean freight (FEU) | $1,500-$4,000 depending on season |
| Peak season surcharge (added to base) | $200-$1,000/FEU |
| Bunker adjustment factor (BAF) | $100-$400/FEU |
| Index update frequency | Weekly (most major indices) |
During periods of rapid rate movement, the gap between index-published rates and rates actually bookable in the market can widen to several hundred dollars per container within a single week.
Risk mitigation / operational guidance
Use rate indices as a directional signal for negotiation timing rather than a guaranteed quote — booking ahead of an anticipated index increase (e.g., before a GRI effective date) can lock in lower rates even if the index has already started moving. Track multiple indices rather than relying on one, since methodology differences (which carriers report, which surcharges are included) can produce materially different readings for the same lane and week. For contracted-rate shippers, compare index trends against contract rate renewal timing — if spot rates are tracking well below contract rates, it may be worth negotiating a contract amendment or shifting incremental volume to spot. Document the index value and date referenced in any rate negotiation correspondence, since carriers may dispute index applicability after the fact if the index has since moved.