Container Freight Rate Index - CCFI vs SCFI

Freight data is collected from a variety of primary and secondary sources, ranging from direct participants such as carriers, shippers and freight forwarders to government sources and trade/industry associations. The data thus collated is aggregated and presented as the current average/weighted average rate for the route/trade/region being monitored.

Index freight rates are monitored and published by a variety of government agencies and private bodies, each focused on their area of interest or target audience. Examples of the former include the China Container Freight Index (CCFI), which monitors export freight rates in China and is sponsored by the Chinese Ministry of Transport (although calculated by the Shanghai Shipping Exchange), while the latter includes indices published by private entities such as Xeneta (a provider of rate benchmarking and market analysis solutions specifically for the shipping and logistics industry).

Here is the list of contents:

· What is CCFI?

· What is SCFI?

· What is the specific meaning of the SCFI sub-lane tariff?

· What are the differences between SCFI and CCFI?

· What is the composition of the SCFI sample?

· How is the SCFI calculated?

· When is the SCFI released?

· How is the SCFI release date determined?

What is CCFI?

China Containerized Freight Index a type of economic transport shipping index.

The China Containerised Freight Index ("CCFI") was first published on 13 April 1998, under the auspices of the Ministry of Communications and compiled by the Stock Exchange, to meet the needs of the rapidly developing Chinese container transport market.

The CCFI has attracted great response and generated considerable economic and social benefits, and has become the world's second largest freight index after the Baltic Dry Index with its scientific and authoritative nature.

It has become an important indicator for the world to understand China's shipping market, providing a strong basis for the daily business decisions of major shipping enterprises, attracting high attention from the press and relevant research and consulting institutions, and providing a basis for government departments to make decisions on the macro-control of China's container shipping market.

China Export Container Tariff Index is compiled and published in the following manner:

1. Base Period

The China Export Container Tariff Index takes January 1, 1998 as the base period, with a base period index of 1000 points.

2. Selection of Sample Routes

According to the three basic principles of typicality, regional distribution and relevance, 12 routes were selected as sample routes, namely Korea, Japan, Southeast Asia, Australia and New Zealand, Mediterranean, Europe, East and West Africa, West America, East America, South Africa, South America and Bohemia, and their domestic departure ports include Dalian, Tianjin, Qingdao, Shanghai, Nanjing, Ningbo, Xiamen, Fuzhou, Shenzhen, Guangzhou and other ten ports.

3. Collection of Freight Information

At present, Chinese and foreign shipping companies with a large market share of the route provide the tariff information required for the preparation of CCFI in accordance with the voluntary principle. They are (in alphabetical order by their initials): CMA-CGM, COSCO, EMC, HASCO, HEUNG-A, HLAG, HMM, HSDG, JINJIANG, KMTC, MAERSK, MSC, ONE, OOCL, PIL, RCL, SINOTRANS, SITC, TSL, WANHAI YANGMING, ZIM.

4. Publication Method

The HKMEx compiles and publishes the China Export Container Composite Rate Index and 14 sub-routes every Friday.

What is SCFI?

SCFI stands for Shanghai Containerized Freight Index, which reflects the change in freight rates in the spot market for export containers in the Shanghai area.

What is the specific meaning of the SCFI sub-lane tariff?

The SCFI sub-lane market rates reflect the level of ocean freight and ocean-related surcharges in the spot market of each route.

The destination port of the route:

is the base port of the route, e.g. Mediterranean - Barcelona / Valencia / Genoa / Naples; Europe - Hamburg / Rotterdam / Antwerp / Flixtor / Le Havre; US West - Los Angeles / Long Beach / Oakland; US East - New York / Savannah / Norfolk / Charleston / Norfolk / Charleston; Japan Kansai - Osaka / Kobe; Japan Kanto - Tokyo / Yokohama.

Surcharge Components:

BAF/FAF, EBS/EBA, LSS, CAF/YAS, PSS, WRS, PCS, SCS/SCF/PTF/PCC, etc. Excluding terminal handling charges at port of origin and port of destination, port facility security surcharge, South China origin surcharge, US automatic customs declaration charges, inland transshipment charges, etc.

Billing units:

USD /TEU, USD/ FEU for US West Coast and US East Coast routes.

Trade and transport terms:

Export CIF, CY-CY.

Container type/cargo name:

General dry cargo container, US West Coast, US East Coast routes for general general cargo category. 3.

What are the differences between SCFI and CCFI?

Firstly, the geographical scope is different, SCFI reflects the Shanghai export container transport market, and the sub-lane tariff is the port-to-port tariff level; while CCFI reflects the China export container transport market, and the sub-lane tariff index is the tariff change of the whole route.

Secondly, the markets reflected are different: SCFI reflects the Shanghai export container spot market freight level, which is more sensitive and timely, while CCFI reflects the overall China export container freight level (including spot and long-term), which is more comprehensive and macro.

What is the composition of the SCFI sample?

The sample companies used in the SCFI calculation are members of the China Export Container Freight Index (CCFI) Editorial Committee, including liner companies and cargo owners and forwarders, all of which are globally renowned or have excellent performance in a particular field and are of good credit standing.

How is the SCFI calculated?

The SCFI market rates by route are calculated using the simple arithmetic average method. The composite index is calculated using the route-weighted average method. The composite index is set on October 16, 2009 as the base period, with a base period index of 1000 points.

When is the SCFI released?

The SCFI is released at 15:00 (Beijing time) on each index release date.

How is the SCFI release date determined?

The release date of the SCFI is generally every Friday, subject to adjustment in case of legal holidays, etc. The specific release date of the index is announced by the Shanghai Shipping Exchange.