What’s new: The Shanghai Shipping Exchange has launched a new set of indexes tracking the settlement prices of containers shipped from Shanghai to Europe and the U.S. West Coast. Data for the indexes will come directly from shipping companies, said the exchange’s Chairman Zhang Ye.
Following the Monday launch, futures contracts based on the Shanghai (Export) Containerized Freight Index based on Settled Rates (SCFIS) will debut on the Shanghai Futures Exchange soon, Caixin has learned.
The exchange will first consider a futures contract based on the Shanghai-Europe route in yuan terms, said Jiang Yanzeng, the exchange chairman. Foreigners will be welcome to invest in the contracts, Jiang added.
What’s the background: The SCFIS indexes started with a value of 1,000 based on June 1 data, and will be updated every Monday. The exchange launched the indexes after costs spiked on Sino-U.S. routes during the global pandemic, prompting Chinese authorities to step in and control the situation.
As of Thursday, the index tracking the Sino-European route settled at 1,431.75, while the one tracking the Sino-U.S. route had already more than doubled from its starting point to reach 2,376.13, according to the exchange website.
Contact reporter Lu Yutong (yutonglu@caixin.com) and editor Doug Young (marcusryder@caixin.com)
