Korea Maritime Promotion Corporation To Launch Its Container Freight Index

On November 7th, Korea Maritime Promotion Corporation (CEO Yang-soo Kim, hereinafter referred to as the corporation) announced that it would officially launch the “KCCI (KOBC Container Composite Index),” a container freight index developed by the corporation itself.

KCCI is calculated as a comprehensive index of 13 routes, including North America and Europe, based on container fares departing from Busan Port. Unlike the existing fare index, KCCI reflects the recent trend and uses a 40-foot container for all routes, and uses a weighted average for each route as a comprehensive index to increase the intuition of the market. It is expected that it will be of great help to the domestic logistics industry and import/export shippers by reflecting the departure and offshore routes (China, Japan, Southeast Asia).

Since the summer of 2020, KDHC has been promoting the development of a Korean container freight rate index. Initially, the index was calculated by reflecting the published fares registered in the Port-MIS (Port Management Information System) by regular shipping companies calling at Korean ports, and the compatibility between the index developed for one year and the market was reviewed. has been publicly announced.

For 10 months after the pilot announcement, KAC formed a panellist of specialized logistics companies to supplement the fares of the published fare system, expanded the original number of routes from 9 to 13, and increased the weight of each route by collecting opinions and adjusting several times. The index calculation has been advanced, such as improving. As a result, the KCCI calculation is calculated by integrating 25% of the published fare with 75% of the fare provided by the panelists. expected.

KCCI announced that a total of 10 specialized logistics companies are currently participating as panelists in the development and operation of KCCI.

CEO Kim Yang-soo said, “Even though the shipping market volatility has greatly expanded after the COVID-19 pandemic, there was no container rate index based on Korea, so it was difficult for domestic exporters and importers and related companies to determine the exact rate level.” We will continue to actively collect opinions and make improvements so that we can establish ourselves as a standard that meets the needs of the logistics industry and shippers and shippers.”

KCCI is scheduled to be announced every Monday at 2 pm on the website of the construction information network, KakaoTalk information channel, and the weekly shipping market report.

Reference: KOBC