Shanghai, August 27 (Xinhua) -- In July 2015, the Shanghai Shipping Exchange announced the trial operation of the “Belt and Road” Shipping and Trade Index it developed and compiled. This was the most in-depth public interpretation by a domestic institution of the shipping industry's role in the “Belt and Road” Initiative. In July 2017, the Shanghai Shipping Exchange officially released the “Belt and Road” Shipping and Trade Index.
“Judging from its operation over the past year since its official release, the ‘Belt and Road’ Shipping and Trade Index comprehensively and promptly reflects the achievements of ‘Belt and Road’ construction, especially the development results in trade connectivity and transportation, and directly reflects the changes and interrelationships among trade volume, cargo volume, and transport prices,” Liu Yue, manager of the Information Department of the Shanghai Shipping Exchange, told China News Service.
The “Belt and Road” Shipping and Trade Index (hereinafter referred to as the Shipping and Trade Index) consists of three major categories: the “Belt and Road” Trade Volume Index, the “Belt and Road” Cargo Volume Index, and the “Maritime Silk Road” Freight Rate Index. It not only leverages the advantages of Shanghai's development as an international shipping center but also comprehensively reflects the implementation effects of the “Belt and Road” Initiative at the national level.
In June 2018, the “Belt and Road” Trade Volume Index stood at 124.61 points. The “Belt and Road” Cargo Volume Index stood at 125.94 points. “Today, the categories and quality of China's foreign trade goods are continuously upgrading, and the operation of China-Europe freight trains is building a new pattern for China's foreign trade,” Liu Yue observed.
In June 2018, the “Maritime Silk Road” Composite Index stood at 97.60 points, and the Imported Crude Oil Freight Rate Index stood at 49.91 points. In this regard, a researcher from the Shanghai Shipping Exchange analyzed that China's measures to cut overcapacity in industry, transform and develop manufacturing, and save energy and protect the environment are being gradually advanced. In the long run, with the continuous expansion of “Belt and Road” transport infrastructure investment, comprehensive transport costs will gradually decrease.
Recalling the difficulties encountered when compiling the index, Zhou Jie, head of the “Belt and Road” Shipping and Trade Index Compilation Team, told reporters that the biggest challenge was how to accurately and promptly reflect large volumes of data and information. “For example, clothing, luggage, and other goods have large trade volumes but relatively low trade values, while machinery and electronic products of the same transport volume have much higher trade values. Through multiple classified indices, the Shipping and Trade Index integrates trade value and trade volume data with freight rate data for corresponding routes, comprehensively and objectively reflecting market activity and demand trends.”
As a “barometer” reflecting economic and trade exchanges among countries and regions along the “Belt and Road” and as a freight settlement tool for transport contracts, the authenticity and accuracy of the Shipping and Trade Index information are crucial. The big data for the Shipping and Trade Index comes from a wide range of sources. The Shanghai Shipping Exchange leverages its membership advantages to extensively collect market data and uses big data cleaning to achieve timeliness, stability, and standardization of data. At present, the Shanghai Shipping Exchange's members include about 130 domestic and foreign shipowners, cargo owners, and brokerage firms from various segmented transport markets, enjoying high international recognition.
In the future, in addition to shipping and railway transport modes, the Shipping and Trade Index will incorporate road and air transport into the index system. In terms of route layout, it will also develop transport routes between countries and regions along the “Belt and Road.”
At the same time, the Shanghai Shipping Exchange will accelerate the application of the Shipping and Trade Index in the economic and trade fields of countries and regions along the “Belt and Road,” encourage traders and shipping operators from various countries to use the Shipping and Trade Index for index linking when signing trade and transport contracts, and promote the index as a hedging tool for managing market fluctuation risks.
Zhang Ye, Party Secretary and President of the Shanghai Shipping Exchange, stated that behind the realization of policy coordination, facilities connectivity, unimpeded trade, financial integration, and people-to-people bonds, the flow of data and information is embedded. Relying on the index platform and related information, jointly developing with countries and regions along the routes and creating a “Belt and Road” trade and cargo big data platform will further upgrade data and information services.