For the purpose of meeting the demand of international container freight index derivative and optimizing China’s export container freight index system, Shanghai Shipping Exchange renovates and publicizes Shanghai (Export) Containerized Freight Index (SCFI), which was officially issued on October 16th 2009 to replace the original SCFI issued on December 7th 2005.
I. General Conditions of SCFI
The SCFI reflects the spot rates of Shanghai export container transport market. It includes both freight rates (indices) of 15 individual shipping routes and a composite index.
i. Freight rates of individual shipping routes
The freight indices reflect the ocean freight and the associated seaborne surcharges of individual shipping routes on the spot market, where:
Shipping routes: major container trade routes export from Shanghai to the following regions:
Europe, Mediterranean Sea, US west coast, US east coast, Persian Gulf, Australia/New Zealand, West Africa, South Africa, South America, West Japan, East Japan, Southeast Asia, Korea, Taiwan and Hong Kong.
Ports of destination: the base ports were defined in each individual trade route, e.g.
USWC—Los Angeles/Long Beach/Oakland;
USEC—New York/Savannah/Norfolk/ Charleston;
Price type: the defined prices reported by the panelists are mainstream booking price between major container lines and shipper or freight forwarders on the spot market, with a statistic concept as “mode”. This price is not affected by the specialty of ship’s type, ship’s age, carrier or transport volume.
The seaborne surcharges include:
Unit: USD/TEU (USD/FEU is for US West coast and East coast services)
Trade and transport term: export CIF, CY-CY
Container type/cargo description: General dry cargo container (General cargo is for US west coast and east coast services)
ii. Composite index
The basis composite index is 1,000 points and the base period is specified on October 16th 2009.
II. Freight Information Collection and Panelists
The freight information for SCFI compilation is reported by CCFI panelists, including liner companies and shipper/freight forwarders. All member panelists are world-renowned enterprises with outstanding performances and sound reputation in shipping circle. At present, 20 liner companies and 17 shippers/freight forwarders provide the freight information. Their name are as follows:
Panelists of liner companies (in the alphabetic order of English abbreviations): CMA-CGM, COSCO Shipping Lines Co., Ltd., Hamburg Süd (China) Limited, Hapag-Lloyd, Kline, Maersk, MOL, MSC, NYK, OOCL, PIL, RCL, Shanghai Hai Hua Shipping, Shanghai Jin Jiang Shipping, Sinotrans Container Lines, SITC Container Lines, Yang Ming Marine Transport Corp, EVERGREEN MARINE CORP. (TAIWAN) LTD., Korea Marine Transport (China) Co., LTD., Wan Hai Lines Ltd.
Panelists of shippers/ freight forwarders (in the alphabetic order of English): COSCO Logistics (Shanghai) , JHJ International Transportation Co., Ltd. , Orient International Logistics (Holding) Co., Ltd. , Shanghai Asian Development Int’l Trans Pu Dong Co., Ltd. , Shanghai Huaxing International Container Freight Transportation Co., Ltd. , Shanghai Jinchang Logistics Co., Ltd. , Shanghai Orient Express International Logistics Co., Ltd. , Shanghai Richhood International Logistics Co., Ltd. , Shanghai Viewtrans Co., Ltd. , Shangtex Group International Logistics Co., Ltd. (formerly named Shanghai Shenda International Transportation Co., Ltd.), SIPG Logistics Co., Ltd. , Sinotrans Eastern Co., Ltd. , Sunshine-Quick Group , UBI Logistics (China) Ltd. , Shanghai Sijin International Transportation Co.,Ltd. , Shanghai Syntrans International Logistics Co.,Ltd, . and Shanghai BA-SHI YUEXIN logistics Development Co.,Ltd. .
III. Index Compilation and Publication
i. Freight calculation of individual shipping routes
The freight rate of individual shipping route is the arithmetic mean of all freight rates of each route. The minimum number of reports per route per week is subject to the weighting on the specific route. At least five reports are required for the shipping route with less than 5% weighting; at least six reports are required for the route of 5%-10% weighting; at least seven reports are required for 10%-15% weighting; At least eight reports are required for the route with more than 15% weighting.
Where: i = route, j = sample company, n = number of sample companies on specific route
ii. Calculation of composition index
The composite index is the weighted average of all routes: the average spot freight rate of the specific route is divided by average price of its base period. The result multiplies its weighting and its base period index to obtain a value of each route. All the route values shall then add up to obtain the total value.
Where: i = route, m = number of the route, Wi = weighting of route i
iii. Index publication
The CCFI is publicized by SSE at 15:00 (Beijing Time) on each date of publication. Users may log on to the websites of SSE to obtain the updated freight index information.
The date of publication is generally on each Friday and will be adjusted in legal holidays. The specific dates will be made known to public by SSE. If necessary and reasonable, SSE may postpone or cancel the publication.
IV. Official Statement
SSE is a non-profit institution sponsored by the government, which provides premise, facilities and information to shipping related business. We adheres the principles of “Fairness, Openness and Impartiality” and maintains independent and authoritative status in shipping circle.
SSE will compile and publicize the freight indices in strict conformity with "The Articles of China Containerized Freight Index Compiling Panel" and "The Rules of CCFI Compilation".