Â
>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Â
Â
The Shanghai International Energy Exchange (INE) said the Containerized Freight Index (Europe Service) Futures Contracts (EC futures contracts) will be listed for trading on Friday, marking the first shipping futures product in China.
The futures reflect freight rates for containers shipped from Shanghai to ports in Europe, which is aimed at helping companies hedge against risks in fluctuating container freight prices.
The EC futures contracts are priced and settled in the yuan and it will promote the yuan internationalization, according to INE.
The new freight index futures will provide shipbuilding companies, cargo owners and container firms a financial tool to avoid price fluctuation risks.
As the world’s largest exporter of goods, China has a huge container freight market. As of 2022, seven of the world’s top 10 container ports are in China, with the Shanghai port being the largest, according to Clarksons, a shipping services provider.