Điều khoản Logistics What Are the Differences? SCFI vs CCFI vs BDI

Ocean transport is one of the vital pillars of global trade, and the freight index serves an essential role in understanding and forecasting market trends. Three types of indices, SCFI, CCFI, and BDI, each have different objectives and standards, and cover different aspects of the ocean transport market.

SCFI measures the freight rates of containerized cargo departing from Shanghai, CCFI covers the overall container freight rates in China, and BDI reflects freight rates of the dry cargo shipping market. These indices provide important information to companies and shippers engaging in ocean logistics, thus aiding them in making strategic decisions.

SCFI(Shanghai Containerized Freight Index) is an index of the average freight rate of containerized cargo departing from Shanghai ports and is announced by the Shanghai Shipping Exchange (SSE). SCFI was first launched in October 2009, and since then SSE has begun to monitor and record freight rate fluctuation of major routes departing from Shanghai ports systematically.

It set the freight rate level of October 16, 2009 at 1,000 points, and turned the following changes into an index numerically based on the standard. This index is based on freight rates of containerized cargo departing from Shanghai, and freight rate data is collected in collaboration with shipping companies. The index is updated on a weekly basis and provides reliable data by reflecting real-time freight fluctuation in the market.

SCFI includes freights of major routes from Asia to Europe, North America, the Middle East, etc. The 15 major routes are as follows:

Europe

West Coast North America

East Coast North America

Mediterranean

Australia/New Zealand

Latin America

Africa

Japan

Korea

Southeast Asia

the Middle East

India/Pakistan

Hong Kong/Taiwan

Caribbean Sea

Other Asian countries

It mainly reflects the export market in Asian countries, serves a key role in figuring out and predicting freight volatility of ocean shipping, and is utilized widely in various industries. Thanks to SCFI, cargo carriers and shippers can get information about market fluctuation, manage freight rates, and establish strategies efficiently.

Basic Freight
The basic freight rate for individual routes is the basic component of SCFI and reflects the cost applied to actual cargo shipping.

Additional Charges
Other than basic freight rates, SCFI provides other types of freight accurately including terminal fees, tax, insurance fees, and other additional charges.

Various Shipping Companies Data
As SCFI is calculated based on the freight rates provided by many shipping companies, it’s not limited to the rates of particular shipping companies but reflects the overall market situation.

Data by Routes
Freight rate data collected for each route may appear differently depending on the characteristics of the route and market conditions. Through this, SCFI can reflect various market volatility.

Freight Negotiation
SCFI is used as an important standard between shipping companies and shippers when negotiating freight rates and fair price can be set using the latest freight rate data. SCFI fluctuation allows us to understand market conditions and engage in strategic negotiation.

Risk Management
Through SCFI, freight rate volatility can be predicted and the resulting risks can be managed in advance. Furthermore, SCFI data can be utilized to predict ocean transport costs and establish a budget.

Establishment of Operating Strategy
SCFI can be utilized to predict shipping costs and optimize logistics operation strategies. Through a selective use strategy that takes into account SCFI fluctuations, cost reduction and operational efficiency improvement are feasible by selecting a specific route or shipping company.

Because freight rate fluctuation is closely related to economic growth, consumer demand, and international trade conditions, SCFI serves as a significant economic indicator. By improving cost efficiency through risk management and prediction, companies can enhance their competitiveness and operate efficiently.

China Containerized Freight Index (CCFI) is an index that measures the average freight rate of containerized cargo departing from China and is announced by the SSE. It is an index that represents the global container market objectively, and is evaluated as a major index for China's ocean shipping market conditions. CCFI is based on freight rate data provided by various shipping companies.

CCFI, an index launched more than 10 years prior to SCFI, was first announced on January 1, 1998, and was published as the importance of China's shipping industry in the global market began to increase. CCFI sets the freight rate level of January 1, 1998 at 1,000 points, and turns subsequent volatility into indices numerically based on the standard. The index is based on freight rates for containerized cargo departing from several major ports in China, and the data is collected in collaboration with many shipping companies. It is updated on a weekly basis and is utilized in various fields such as negotiations between ocean shipping companies and shippers, market analysis, and risk management.

CCFI includes 12 major routes in total and reflects the freight rate of global routes departing from China. The major routes are as follows:

Europe

West Coast North America

East Coast North America

the Mediterranean

Latin America

Australia/New Zealand

Southeast Asia

Japan

Korea

Africa

the Middle East

Hong Kong/Taiwan

CCFI is used as an important indicator in the ocean shipping industry in China and is an essential tool for understanding China's import and export logistics flows. Through this, shipping companies and shippers can predict market volatility and establish more strategic shipping plans.

Freight Rate Data Collection
CCFI sets January 1, 1998, as 1,000 and calculates freight rates for 11 major routes based on ports in China. It is announced every Friday weekly based on freight rate information from 16 shipping companies.

Route Selection
Major international routes are selectable. Routes are selected based on the level of importance and multiple routes data are consolidated.

It serves as an important reference when negotiating freight rates between shippers. A fair price can be set based on the latest freight rate data, and can be utilized to select specific routes or shipping companies. It also contributes to establishing long-term logistics strategies through companies' rational and practical decisions.

It plays a crucial role in measuring and analyzing freight rate fluctuations in the Chinese shipping market, and is utilized as essential data for logistics companies to make strategic decisions.

BDI (Baltic Dry Index) is an index that measures the freight rates of bulk cargo (iron ore, coal, grain, etc.) on the world's major shipping routes and reflects volatility in the global ocean shipping market. This index primarily represents ocean freight rates for dry bulk cargo and plays a vital role in the ocean shipping market globally.

The index is published and announced by the Baltic Exchange, a global shipping and logistics information provider headquartered in London, UK. The Baltic Exchange announces various indices related to ocean shipping freight rates. BDI has been used by the Baltic Exchange since November 1, 1999, and is a comprehensive freight rate index that replaced the Baltic Freight Index (BFI), which has been used as a dry cargo freight index since 1985. The index is calculated by setting January 4, 1985, as 1,000 and is announced according to the type of vessel.

BDI is calculated by collecting daily freight data on various vessel types and routes. Because freight rates fluctuate depending on supply and demand in the market, the index also fluctuates accordingly. BDI is announced during the weekdays daily and reflects trends of the ocean shipping market in real time.

It is used as an important indicator of the global economy and trade activities and is a key tool to quickly determine the supply and demand status of bulk cargo. This helps shipping companies, investors, and policymakers predict economic trends and establish transportation and investment strategies.

Freight Rate Data
BDI is based on freight rate data of various vessels collected from the Baltic Shipping Exchange. It is provided by several shipping companies and shippers, and includes freight rates for various types of vessels required for dry cargo transport.

Type of Vessel
BDI mainly includes freight rates for three major vessel types as follows:

Capesize: Large vessels that can usually carry more than 150,000 tons of cargo. It mainly transports large quantities of dry cargo such as iron ore, coal, etc. Because of their huge size, they can’t pass through the Suez Canal or Panama Canal, so they usually sail directly to major consumption destinations such as Australia and Brazil.
BCI is calculated using a weighted average by collecting these freight rate fluctuations daily and is an important indicator for understanding large bulk cargo market trends.

- Panamax: As the largest-sized vessel that can pass through the Panama Canal, it is capable of carrying approximately 60,000 to 80,000 tons of cargo, and transports cargo such as grain, coal, and iron ore.
It is calculated based on freight rate data from several major routes and is widely used in various regions around the world. Like BSI, this index is calculated with a weighted average of daily freight rate data and is a useful indicator for identifying freight rate trends in the market.

- Supramax: These types of vessels can carry approximately 50,000 to 60,000 tons of cargo and are slightly smaller than Panamax. It has the flexibility to transport a variety of dry cargo, mainly grain, coal, cement, and fertilizer.
BSI is calculated based on freight data on several major routes used by Supramax class vessels. This index is calculated by using a weighted average of daily freight data collected from ocean shipping brokers.
In addition, BSI reflects fluctuations in freight rates according to market supply and demand in real time and is an important tool for ocean shipping companies and investors to understand market trends.

These three indices serve as important freight rate indicators in the bulk cargo market, with each index reflecting freight rate fluctuation tailored to specific vessel types. Through this, market participants can understand various market situations and make strategic decisions.

Weighted Average Calculation Method
Depending on the vessel type, it consists of the Baltic Capesize Index (BCI), Baltic Panamax Index (BPI), Baltic Supramax Index (BSI), and Baltic Handysize Index (BHSI). BDI is calculated by equally weighting the four indices of liners by vessel type, and then multiplying by BDI factor.

Investment Decision Making
A rise in BDI can foreshadow an increase in profits for shipping companies. Based on this information, the investment portfolio can be adjusted, and BDI can be used as a reference in making stock or investment decisions related to shipping and raw materials for companies.

Contract Negotiation Standards
BDI is used as an important standard in freight rate negotiations between shipping companies and shippers. Fair freight rates can be determined based on the latest BDI data.

Risk Management and Logistics Cost Prediction
By using BDI, risks caused by freight fluctuations can be managed in advance. Moreover, BDI fluctuations have a direct impact on the costs required for cargo transport, thus enabling budgeting and establishing transport strategies.

BDI is a key indicator in the dry cargo transport market and is utilized in various fields such as economic analysis, logistics planning, and investment decisions. BDI volatility is closely related to the global economy, which allows shipping companies, shippers, and investors to make more strategic and effective decisions.

Measuring Freight Fluctuations
SCFI, CCFI, and BDI are all utilized as economic indicators, which are calculated by measuring freight rate fluctuations in the shipping market.

Economic Significance
These indices are used as a necessary tool to understand the global trade and logistics situation.

Data-Driven
Each index was created based on data collected from shipping and logistics companies.

Expertise
Various stakeholders, including shipping companies, shippers, and investors, utilize these indices to make strategic decisions.

BDI is used to analyze trends in the dry cargo market and to predict raw material transport costs. These indices play an important role in a company's logistics strategy, investment decisions, and market analysis.

BDI focuses on dry cargo transport and reflects freight rates for bulk cargo vessels such as Capesize, Panamax and Supramax. On the other hand, SCFI and CCFI measure the freight rates of container vessels.

BDI reflect freight rates for bulk cargo vessels of various sizes so it includes a wider range of the shipping market than SCFI and CCFI, which are container vessel centered.

SCFI focuses on Shanghai ports and reflects freight rates on specific routes, whereas CCFI covers freight rates on ports across China and various routes.
Moreover, SCFI is useful for identifying short-term freight rate fluctuations, while CCFI is suitable for understanding long-term trends in China's shipping industry as a whole.