On October 16th, the launch ceremony of new SCFI was solemnly held at Shanghai Shipping Exchange (SSE). The

ceremony was attended by superior leaders from the Ministry of Transport (MOT) and Shanghai Government,

distinguished guests, representatives of freight index panelists and public media.

　　In 1998 and 2001, SSE respectively issued China (Export) Containerized Freight Index (CCFI) and China (Coastal)

Bulk Freight Index (CBFI). To follow the pace of dramatic development of China’s container transport market, SSE

compiled CCFI under the sponsorship of Ministry of Transport (MOT). After more than 10 years of successful

operation, it has produced a great effect both at home and abroad and generated considerable economic and social

benefits. It is now deemed as the most scientific and authoritative freight index second to the Baltic dry bulk

indices and thus cited by UNCTAD in the maritime yearbooks. In 2005 for the purpose of meeting the demand of

building Shanghai International Shipping Center and reflecting the momentum of Shanghai container liner service

market more objectively and accurately, SSE further developed Shanghai (Export) Containerized Freight Index (SCFI).

　　The new SCFI is optimized on the basis of original SCFI (dating from December 7th 2005) with the starting level

of 1,000 points and the base period of October 16th 2009. The freight information is provided by 30 panelists of

CCFI Panel. On each Friday, SSE will compile and publicize the new SCFI and spot rates of 15 individual routes,

namely the Mediterranean Sea, Europe, US west coast, US east coast, Australia/New Zealand, West Africa, South

Africa, South America, Persian Gulf, West Japan, East Japan, Southeast Asia, Korea, Hong Kong and Taiwan.

　　The new SCFI directly shows the market freight rates of individual routes, which are more straightforward and

understandable to users. All shipping-related enterprises as well as other entities and organs may easily understand

the change of freight rates of major shipping routes departing Shanghai, which facilitate users’ decision-making

and satisfy the demand of container derivatives transaction.

　　On April 14th 2009, the State Council publicized the Circular on Promoting Faster Development of Modern Service

Industry and Advanced Manufacturing Industry in Shanghai and Construction of Shanghai International Finance Center

and International Shipping Center (the Circular for short), which clearly states one of the main tasks and measures

in cultivating the international shipping center, “To improve supportive policies for modern shipping development…

broaden the product line of shipping finance, speed up development of freight index derivative and provide risk

control for domestic shipping enterprises.”

　　Earlier in 2003, SSE set up a special panel to develop freight index futures products that started study of

shipping finance derivative. The Circular of the State Council greatly encourages SSE and clearly defines the

orientation. By implementing the spirit and significance of the Circular, the new SCFI not only offers an important

tool of market analysis, but also meets the demand of forward transaction so as to improve the words right and price

decision status in the international liner operation circle.