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The Freight Right TrueFreight Index (TFX) tracks global container shipping rates in real-time, ensuring accuracy through rigorous data validation and volume-weighted calculations. It aggregates pricing from logistics providers, filtering anomalies. Automated processes enhance objectivity, while ongoing reviews and audits ensure reliability, aligning with market trends and industry demands.
The container shipping market continues to shift rapidly, with rates falling, tariffs shaping import decisions, and upcoming supply chain disruptions on the horizon.
Rate Drops:
West Coast rates have fallen dramatically from $3,500–$3,600 in early February to ~$2,500 per container.
East Coast rates have also dropped, now at $3,200–$3,300, but not as steeply as the West Coast.
Seasonal factors, weak demand, and miscalculations by carriers have led to excess vessel space, forcing prices downward.
Tariff Impact:
The new 10% tariff on Chinese imports is causing hesitation among importers. Many are in “wait-and-see” mode before making purchasing decisions.
Speculation is rising that the tariff could increase to 25%, similar to the 2018 shift that led to a migration of production to Vietnam and Thailand.
What’s Next?
The next major potential disruption will be May Day (May 1st) in Asia, a holiday that may cause minor delays but won’t be as significant as Chinese New Year.
Many importers are weighing long-term strategies to avoid tariffs, but no clear alternative has emerged yet.
The Freight Right TrueFreight Index (TFX) is a benchmark designed to accurately reflect global container shipping rates by capturing real-time market fluctuations. Built on a foundation of transparency and data integrity, the index aggregates pricing information from multiple logistics providers, including freight forwarders and industry stakeholders.
To maintain accuracy, the index applies rigorous data validation techniques, filtering out anomalies and inconsistencies. It primarily relies on median spot rates for standard container shipments across key trade lanes. In cases of limited data availability, a structured methodology ensures completeness and reliability.
The index calculation follows a volume-weighted approach, where major trade routes with higher shipping activity exert greater influence on the final benchmark value. Automated processes eliminate bias, ensuring objectivity and consistency in rate determination.
Freight Right continuously enhances the index through regular reviews, quality control audits, and backtesting, ensuring it remains a reliable market indicator that aligns with industry trends and market demands.
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