SSEFC is the first shipping freight third party centralized trading platform in the world and the first domesticfloor trading platform of shipping financial derivatives trading.SSEFC could greatly reduce the price risk the domesticshipping companies are facing now and could help them hedge risks. China will hence have a big say in International shipping pricing power.
93 per cent of domestic foreign trade transactions are done via shipping, according to reliable statistics.
As the degree of export-oriented economy of Yiwu market has been over 65 per cent, Yiwu, the largest commodities distribution base in the world, shows its remarkable achievement in delivering various of commodities to 219 countries and regions all over the world and in handling over 570,000 export TEUs annually.
Shipping has become the major means of overseas transportation for Yiwu dealers.
“We are struggling to make a profit as the International prices of shipping turns out to be unsteady.
“Liu Fangxiang, the dealer in District Four of Yiwu International Trade Mart, briefed that profits of their export enterprises will be further diluted and the comprehensive competitiveness of their export commodities will be further decreased if sharp increases in shipping prices happen frequently.
If this high shipping risk can be eluded in a reasonable way or not?”Yiwu Shanghai Shipping Freight Exchange Agent Broker Service Center (hereinafter referred to as’the Center’) will be settled in the first floor in District Four of Yiwu International Trade Market in the near future. The Center will provide hedging services to the import and export trade of over 200,000 dealers, agents and overseas traders in Yiwu market.”The man who is in charge of preparing for the opening of the Center said that the the Center will treat shipping prices as a derivatives-trading product and make it in operation through the platform. Yiwu dealers will not only lock in costs in future, but also invest in it.
It is introduced that China Commodity City Group has officially signed with Shanghai Shipping Freight Exchange Co., LTD (hereinafter referred to as SSEFC), and became No. 28 member unit of SSEFC.”The Center will perfect the function of shipping services Yiwu market can provide and lower the risk of shipping prices, so as to promote steady development of Yiwu‘s real economy.”William Fu, Assistant to the president of SSEFC stated.
SSEFC is the first shipping freight third party centralized trading platform in the world and the first domestic floor trading platform of shipping financial derivatives trading.”Although containers throughput of China has situatedt first in the world, we didn’t have the shipping pricing power and had to follow the BDI Index.”William told to the reporter that SSEFC could greatly reduce the price risk the domestic shipping companies are facing now and could help them hedge risks. China will hence have a big say in International shipping pricing power.