Since this year, the price of China's export container capacity has risen sharply, and the relevant domestic enterprises are facing the test of price risk. China is the world's largest shipping country, but it still lacks the price influence to match it, industry insiders said. Related domestic futures exchange is advance shipping class derivatives research and development, the future market is expected to be on the shipping after the middle and lower reaches of the industrial chain to provide accurate freight risk management tool, but also can further enhance the yuan in shipping pricing and influence in international trade settlement, to better serve the development strategy of our country comprehensively deepen opening to the outside.

Container capacity futures are expected to be listed

Due to the strong demand in foreign markets, the recovery of import and export trade, the relatively tight container transport capacity and other factors, the price of container transport capacity of China's exports has risen sharply since this year.

As of June 18, China's Export Container Freight Index (CCFI) reached a record high of 2526.65 points, according to the latest Export Container Freight Index released by Shanghai Shipping Exchange. Compared with a week ago, up 84.08 points, or 3.4%; That's up 203% from last year's low of 834.

Industry insiders said that the rising shipping prices also make the shipping industry chain of domestic enterprises are facing the test of price risk, risk aversion demand is strong. In this context, the market on the container capacity futures listing calls higher.

An industry expert pointed out in an interview with the China Securities Journal that the listing of container capacity futures will provide a precise freight risk management tool for the upstream, midstream and downstream shipping industry chains. To be specific, downstream export enterprises, as the buyers of transport capacity, can hedge the risk of rising freight cost through futures hedging and avoid profit loss. As sellers, cruise shipping companies can lock in the selling price in advance through container capacity futures, thus locking in profits. Midstream freight forwarding enterprises can also hedge the spot shipping position to avoid the loss of income caused by freight rate fluctuations.

According to public data, China is the world's largest shipping country. In 2020, the cargo throughput of its ports will reach 14.55 billion tons, and the container throughput will reach 260 million TEU, ranking first in both cargo throughput and container throughput in the world. Among the world's top 10 ports in container throughput, China occupies 7 seats. "Despite this, China still lacks the freight rate influence that matches the trade scale, so it is urgent to launch container transport capacity futures that can reflect the actual supply and demand relationship of China's shipping, so as to serve the development strategy of deepening China's opening-up in an all-round way. Renminbi-denominated container capacity futures can also further enhance the influence of the renminbi in shipping pricing and international trade settlement, and contribute to the internationalization of the renminbi." The experts said.

There are differences with overseas shipping derivatives

It is reported that in order to serve the upstream and downstream shipping enterprises to manage price risk, the domestic futures market is accelerating the development and listing of shipping futures. Among them, DSE's container capacity futures project was completed in 2019, and the contract system design scheme has been basically completed at present. Recently, DSE and COSCO Shipping Group signed a strategic cooperation agreement in Shanghai. The two sides will conduct in-depth cooperation in the research and development and application of shipping derivatives such as container capacity futures, the establishment of futures delivery warehouses and designated institutions, and the in-depth integration of physical delivery and modern logistics services.

In fact, the current international market has a number of shipping derivatives. According to public information, the Baltic Maritime Exchange has launched forward freight swap products based on BDI, and the New York Maritime Exchange has also listed forward agreements for ocean-going container shipping, with relatively limited trading volume and liquidity. What is the difference between the container capacity futures being developed by DSE and the existing derivatives of overseas shipping?

The reporter of China Securities Journal learned in an interview that there are two major differences between the container capacity futures under development and the existing overseas shipping derivatives. One is that the trading objects are different. Overseas shipping derivatives are mostly targeted at the dry bulk and tanker markets, while container shipping accounts for about 90% of China's export trade and is the main carrier of China's export trade. DCE is positioned in the container shipping capacity market, taking the container shipping capacity price of China's exports to the United States and the West as the trading target, so as to reflect and reflect the current situation and demands of the Chinese market.

Second, the delivery method is different. Existing overseas shipping derivatives are all cash delivery, while major companies adopt physical delivery. The delivery is the container capacity of China's export routes to the United States and the West in terms of standard containers. This will be the first physical delivery container capacity futures under development in the world. The physical delivery system can effectively promote the return and convergence of the current price in the near delivery month and guarantee the hedging effect.