Date: 18th August 2023
For the first time since 2017, container freight futures are returning to the Shanghai market today, home to the world’s largest container port.
According to analysts at Linerlytica, the turnover hit RMB3.8bn ($500m) and counting in the first 30 minutes of trading.
The product is now called the Containerized Freight Index Futures (CoFIF) and is being traded at the Shanghai International Energy Exchange, a subsidiary of Shanghai Future Exchange and is regulated by the China Securities Regulatory Commission.
“Unlike the container freight futures traded six years ago where only domestic money was allowed to trade, these CoFIF’s could be traded by overseas parties via overseas brokers,” Linerlytica noted in an update to clients today.
Last year saw the launch of CME Group’s container freight futures in the UK covering six routes.
The futures move follows a period of record rate volatility, driven by the pandemic.