What's included in an indexed rate

Before you trust an indexed rate, you need to know exactly what sits inside it. This page explains how Xeneta treats surcharges and terminal handling charges in index-linked contracts, including one important regional exception.

The short version: Xeneta uses a fixed, platform-wide methodology to decide which charges are part of the indexed ocean rate and which are handled separately. This logic is not configurable. Applying the same rules for everyone keeps index updates transparent, comparable, and reliable for all parties.

Surcharges

Surcharges are cost components added to the base ocean rate. In index-linked contracts, only the surcharges defined within Xeneta's standard inclusion methodology form part of the indexed ocean rate. Any surcharge outside that methodology remains a separate commercial agreement between shipper and supplier.

Because the methodology is fixed and regionally aware, rate calculations stay stable and easy to understand, and there are no hidden surprises buried inside an index adjustment.

Download the full surcharge reference overview

Terminal handling charges (THCs)

Xeneta applies its own Terminal Handling Charges methodology, where the charges included depend on origin and destination.

THCs are usually not part of index-linked rate logic. They are floating port charges that vary by terminal, operator, and local cost structure, and they do not move in line with ocean freight market dynamics. Including them would add noise to the calculation and reduce the integrity of the index itself.

The North America exception

This behaviour is the same when you view or operate an index-linked contract. THCs follow Xeneta's regional methodology so that indexed rates stay aligned with the rates visible across Market Analytics and Integrated Rate Management. In other words, what you index reconciles with what you see elsewhere in Xeneta.

Learn more about the THC methodology

Why this matters

For procurement and finance teams, "what is inside the rate" decides whether the number you budget against is complete. Knowing which charges are indexed and which are separate commercial line items prevents budget surprises and supplier disputes, which is exactly what indexing is meant to remove. As a best practice, document surcharge treatment alongside your rate adjustments so both parties always have a clear, shared view.