For the purpose of meeting the demand of timeliness, precision and sensitivity of freight rates in the Southeast Asia container shipping market, fully reflecting the market conditions in the area, and perfecting SCFI index serials, Shanghai Shipping Exchange (SSE) researched and developed Southeast Asia Freight Index (referred to as " SEAFI "), which began its external trial run from November 30, 2015.
I. General Conditions of SEAFI
SEAFI reflects the spot rate changes of export containers on the services from Shanghai to Southeast Asia base ports. It includes freight rates (indices) of 6 individual shipping routes and a Southeast Asia index.
i. Freight rates of individual shipping routes
The individual shipping routes reflect the ocean freight and the associated seaborne surcharges of individual shipping routes on the spot market, where:
Shipping routes: covering major export container trade routes from Shanghai to the following regions of Southeast Asia:
Singapore, Vietnam, Thailand, Philippine, Malaysia and Indonesia.
Ports of destination: the base ports were defined in each individual trade route, e.g.
Singapore-Singapore;
Vietnam-Ho Chi Minh City;
Thailand-Laem Chabang;
Philippine-Manila;
Malaysia-Port Kelang;
Indonesia-Jakarta
Price type: The defined price is based on the spot market, under the CIF term, focusing on the mainstream trading price, with a statistic concept as "mode", of the sporadic, non-batch container space-bookings by common cargo owners, excluding the prices of long-term agreements or big customers. This price is not affected by the special service requirements.
Freight Composition: including freight rates and seaborne surcharges related to seaborne operational costs as bunker, currency, and equipment reposition and risks as war, port congestion and etc., excluding terminal handling, space-booking, document charges.
Unit: USD/TEU
Trade and transport term: export CIF, CY-CY, only for direct calling service, not for transhipment.
Container type/cargo description: General dry cargo container, excluding special, reefer and hazardous article containers.
ii. Southeast Asia Freight Index
The Southeast Asia Freight Index takes November 30, 2015 as the base period with the base period index of 503.39 points.
II. Freight Information Collection and Panelists
The freight rates for SEAFI 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 names are listed as follows:
Panelists of liner companies (in the alphabetic order of English abbreviations): CMA-CGM, COSCO Shipping, EMC, HASCO, HLAG, HSDG, JINJIANG, K-LINE, KMTC, MAERSK, MOL, MSC, NYK, OOCL, PIL, RCL, SINOTRANS, SITC, WANHAI and YANGMING.
Panelists of shippers/ freight forwarders (in Pinyin alphabet order of company names): Orient International Logistics (Holding) Co., Ltd., UBI Logistics Co., Ltd., JHJ International Transportation Co., Ltd., SIPG Logistics Co., Ltd., Shanghai BA-SHI YUEXIN logistics Development Co., Ltd., Shanghai Orient Express International Logistics Co., Ltd., Shanghai Huaxing International Container Freight Transportation Co., Ltd., Shanghai Jinchang Logistics Co., Ltd., Shanghai Sijin International Transportation Co., Ltd., Shanghai Viewtrans Co., Ltd., Shanghai Syntrans International Logistics Co., Ltd., Shanghai Richhood International Logistics Co., Ltd., Shanghai Asian Development International Trans Co., Ltd., Shanghai Sunshine Logistics Co., Ltd., COSCO Logistics (Shanghai), Shangtex Group International Logistics Co., Ltd. (formerly named Shanghai Shenda International Transportation Co., Ltd.) and Sinotrans Eastern Co., Ltd..
III. Index Compilation and Publication
i. Freight calculation of individual shipping route
The freight rate of individual shipping route is the arithmetic mean of all freight rates on each route.
Where: i = route, j = sample company, n = number of sample companies on the route, = rates reported by sample company (j) on the route (i) in the current period;
ii. Calculation of Southeast Asia Freight Index
The Southeast Asia Freight Index adopts the computational formula of Laspeyres index.
Where: = average rate of the route (i) in the current period; = average rate of the route (i) in the base period; = weighting of route (i); = Southeast Asia Freight Index value on the base period.
iii. Index publication
SEAFI is generally publicized by SSE on Fridays.