As global trade has increasingly embraced digitisation in 2020 due to COVID-19, a new freight pricing platform has been launched to offer a one-stop-shop where users can price and execute freight in real time.
In a move set to revolutionise the commodity world, global supply chain service Czarnikow and Swire Bulk, a leading shipping company, have collaborated to launch a new, innovative freight pricing platform. Ordinarily, managing freight exposure dictates multiple relationships with different service providers. This new product means users can price, fix, and execute freight in one simple workflow.
By using the derivatives market, the platform offers control over the pricing process while protecting against volatile market movements. This is made possible due to the differential between the derivatives and specific routes being locked-in from the outset, delivering greater flexibility by avoiding fixed freight contracts. In short, the key elements of the contract remain floating. The freight rate is broken down into component parts and allows both FFAs and bunkers to be priced, and fixed, independently and gradually over the entire lifecycle of a contract.
Users can access a bespoke online dashboard to see relevant, live prices across all defined routes within the charter party, gain full visibility on volatility-led pricing opportunities and enjoy the functionality to execute in real time.
This service is provided alongside open access to Czarnikow and Swires’ combined trading experience, industry relationships and market insights as they work together in an exciting new partnership.
Rob Aarvold, General Manager of Swire Bulk said; “This innovative digital proposition emerged from a blue-sky ideology to replicate commodity risk management tools, readily available in the derivative trading environment and transpose the concept to the physical freight market. With the first trade successfully completed, Swire Bulk look forward to the continued close collaboration with Czarnikow to roll out the next development phase of the pricing platform.”
Robin Cave, CEO of Czarnikow said; “I’m proud to see Czarnikow and Swire Bulk work together to bring innovation to the sector through our new pricing platform. This year has highlighted processes within supply chains that could be brought into the digital age to increase efficiency. Through our partnership, we hope our clients will be able to benefit from increased flexibility and control.”
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/03122020/czarnikow-and-swire-bulk-join-forces-to-launch-freight-pricing-platform/