DEFINITION of 'HARPEX Shipping Index'

The HARPEX Shipping Index is a container ship index by the ship brokers Harper Petersen & Co. The HARPEX Shipping Index tracks weekly container shipping rate changes in the time charter market for eight classes of all-container ships. The index was compiled in 2004, but by using a database of 10,000 records, can be calculated retrospectively back to 1986.

BREAKING DOWN 'HARPEX Shipping Index'

The HARPEX index is considered a suitable indicator of global economic fleet shipping activity since it tracks changes in freight rates for container ships over broad categories. This index is slightly different than the better-known Baltic Dry Index that tracks freight costs for dry bulk ships that usually carry bulk cargoes and raw materials such as coal, ore and grain.

Similar to the Baltic Exchange, Harper Petersen collects information from its members. Instead of using shipping routes as a unit of analysis, HARPEX weights average daily charter rates across eight size classes of vessels to formulate its index.

International trade is the centerpiece of the global economy; the United States increasingly turns to foreign suppliers for many consumer goods it once produced domestically. Many studies of international trade emphasize only the starting and finish lines of the supply chain, with little consideration of how goods arrive at their final destination. A closer look at the logistics reveals a story of competition and innovation, in which a complex and dynamic network of ships moves the vast majority of traded goods across the world’s oceans. A number of indexes document two principal sectors of maritime shipping — dry bulk and container cargo — and are believed to foretell broader production and commercial developments.

A vessel containing dry bulk generally transports a single load type. Containers ships, by comparison, usually transport a wide variety of finished goods — making measures such as the HARPEX Shipping Index more flexible for measuring global trade.

RELATED TERMS
  1. Baltic Exchange

    The Baltic Exchange handles the trading and settlement of both ...
  2. The Jones Act

    The Jones Act is a federal law that regulates maritime commerce ...
  3. Baltic Dry Index - BDI

    The Baltic Dry Index is a shipping index created by the Baltic ...
  4. Transloading

    Transloading is transferring goods from one mode of transportation ...
  5. Delivered Ex Ship - DES

    Delivered Ex Ship is a trade term; it requires sellers to deliver ...
  6. Geographical Pricing

    Geographical pricing is adjusting an item's sale price based ...
Related Articles
  1. Insights

    Bulk Shipping Companies Struggle As Markets Soften

    The "soft" dry bulk shipping market that confronts shipping companies is a result of lower demand from China, and an excessive amount of bulk ships.
  2. Insights

    Is Free Shipping Worth It?

    Should you buy more just so you can save on shipping?
  3. Personal Finance

    7 Tips For Avoiding Shipping Costs When Shopping Online

    Before clicking on that purchase, make sure you're getting the best deal possible.
  4. Investing

    Looking to Invest in Oil Tankers? Try These 3 Stocks (NAT, SFL)

    Obtain information on the oil shipping industry, and discover three of the most widely traded oil tanker stocks to obtain exposure to oil shipping.
  5. Investing

    Is it the Right Time to Raise Interest Rates?

    Warning signs have started to emerge that point to a potentially dismal 2016 for the U.S. economy.
  6. Personal Finance

    Do You Make More Money Than a Cruise Ship Captain?

    As the cruise-ship industry continues to grow, ship captains are in demand, but it's a strenuous and demanding path to the top.
  7. Investing

    Would 'Shipping with Amazon' Kill UPS and FedEx?

    The retail giant poses a major threat to its rivals, notably traditional delivery services.
  8. Insights

    Wal-Mart Takes on Amazon With Free Two-Day Shipping

    Wal-Mart goes for the jugular by offering Amazon Prime's most valued perk.
  9. Investing

    Musk Talks Mars Voyage, Making Planes Obsolete

    The SpaceX CEO outlined his plans to colonize Mars and transport passengers quickly around Earth for roughly the same price as an economy airline ticket.
  10. Investing

    How Union Pacific Makes Its Money

    If you need to ship titanic volumes of sundry products across sweeping distances, nothing's better than rail, where Union Pacific is a titan.
RELATED FAQS
  1. Shipping Freight: CFR Versus CIF

    In shipping freight, find out about the difference between cost and freight (CFR) and cost, insurance and freight (CIF), ... Read Answer >>
  2. What is the difference between Cost and Freight (CFR) and Free on Board (FOB)?

    Learn some international Incoterms, and find out about the difference between free on board shipping and cost and freight ... Read Answer >>
  3. What is the distinction between Free on Board (FOB) shipping point and destination?

    Learn the difference between international trade terms: free on board shipping point and free on board destination Read Answer >>
  4. When do you buy CIF and when do you buy FOB?

    Making the decision to buy CIF or FOB depends on the experience of the buyer in international trade. Each is convenient depending ... Read Answer >>
  5. Do CIF charges affect the customs duties?

    Using CIF when buying goods from abroad does not necessarily help in saving any money. There are other charges to be paid, ... Read Answer >>
Trading Center