Xinhua News Agency, Shanghai, September 3 Title: Drawing the "Belt and Road Initiative" Air and Trade Map to "Navigate" for Promoting Economic and Trade Cooperation
Xinhua News Agency reporter Jia Yuankun
The "Belt and Road Initiative" trade volume index, the "Belt and Road Initiative" freight volume index, and the "Maritime Silk Road" freight rate index, the three data streams are combined into a "Belt and Road Initiative" air trade map, which is the "Belt and Road Initiative" air trade index officially released by the Shanghai Shipping Exchange on July 11, 2017.
Like the "chart" used by ocean-going freighters, the "Belt and Road Initiative" air trade index has not only become a "barometer" that comprehensively and objectively reflects the economic and trade exchanges between countries and regions related to the "Belt and Road Initiative", but also enhances market transparency through information services, providing an important reference for promoting economic and trade cooperation.
Three data streams plot the "barometer" of air trade
The "Belt and Road Initiative" initiative brings new opportunities for trade and economic cooperation between relevant countries and regions. Where are the cooperation opportunities? How much flow of each product and where are the main markets? When information is not shared and demand is not communicated, the market is often in a wait-and-see state, and all parties need clear market information as a reference for decision-making.
In line with the original intention of providing information services for the market and enhancing market transparency, since 2015, the Shanghai Shipping Exchange has started to develop the "Belt and Road Initiative" air trade index.
"A single freight index cannot fully reflect the trade trends of countries and regions under the Belt and Road Initiative, and it is difficult to meet market demand. On the basis of developing the traditional strong freight index, the Shanghai Shipping Exchange has also explored the two dimensions of trade volume and trade volume. The purpose is to improve market transparency, truly reflect market supply and demand, and promote the long-term and healthy development of the market." Zhang Yi, president of the Shanghai Shipping Exchange, said.
Due to the different types and values of goods, the relationship between trade volume and trade volume is not linear. For example, clothing, luggage and other trade volume is large, but the trade volume is relatively low, while the same volume of machinery and electronic products, the trade volume is much higher. The trade volume, trade volume data and the freight data of the corresponding route can comprehensively and objectively reflect the market active level and demand trend.
The "Belt and Road Initiative" shipping index information is comprehensive, covering 65 countries along the "Belt and Road Initiative", distributed in North Asia, Central Asia, South East Asia, West Asia, North Africa, Europe and Oceania and other regions. The index is not limited to containers, but also includes bulk materials such as coal, railway stones, and crude oil. The mode of transportation is not limited to sea freight, but also includes rail transportation.
To serve as a "barometer" of market trends, the authenticity and accuracy of information are essential. The "Belt and Road Initiative" air trade index data is widely collected by making full use of the membership advantages of the Shanghai Shipping Exchange. At present, the members of the Shanghai Shipping Exchange include about 130 well-known domestic and foreign shipowners, cargo owners and brokers from various transportation segments, and have high international recognition.
"Weathervane" for going out, please come in "Service Station"
The research and development of the "Belt and Road Initiative" air trade index is not only to serve shipping companies to open up routes and cargo owners to open up markets, but also to provide an information platform to enable enterprises in countries and regions along the route to communicate with each other, increase exchanges and promote trade.
Since its official release on July 11, 2017, it has been published by the Shanghai Shipping Exchange on the China "Belt and Road Initiative" website every month. The "Belt and Road Initiative" air trade index consists of both monetary indicators, which reflect changes in trade volume and overall scale, quantitative indicators, which reflect the growth of specific trade flows, and price indicators, which reflect changes in market supply and demand and competition.
"As a third-party platform, the freight index published by the Shanghai Airlines Exchange is highly influential, fair and just, and has been widely recognized by cargo owners and agents," said the shipping companies interviewed.
"Chinese companies need to understand market information to explore overseas markets, and foreign companies need scientific services to enter the Chinese market," Zhang said. "Through the air trade index platform, companies can grasp the trade demand and trend of the market, the import volume and export volume of a certain product, and which regions mainly flow to China. This data information is an important basis for foreign companies to understand the supply and demand of the Chinese market."
The "Maritime Silk Road" comprehensive index covers the freight rates of major cargo types, major routes, and major ship types of shipping. Its application is not only reflected in investment decisions, but also in risk avoidance, such as spot index linking and freight forward transactions.
"The freight index is a bellwether that reflects the market level. At present, 45% of coal shipments along China’s coast are subject to index-related agreements to varying degrees, laying a good foundation for the promotion and application of the Belt and Road Initiative’s air trade index," said Liu Yue, manager of the information department of the Shanghai Shipping Exchange.
Launch a shipping service brand and build an international cooperation platform
Air trade information is a service product. To further promote its application and win the trust of enterprises in countries and regions along the route, it is necessary to use its comprehensiveness and scientificity to launch this shipping service brand. "The application of the Belt and Road Initiative air trade index has just started, and it is still necessary to continuously optimize and expand the connotation of the index. We also expect other national institutions to participate in the compilation and expand the application scope of the index." Zhang Page said.
In addition to shipping and railways, in terms of transportation methods, the "Belt and Road Initiative" air trade index will include road and air transportation in the index system in the future; in terms of route layout, transportation routes between "Belt and Road Initiative" countries and regions will also be developed.
At the same time, the Shanghai Shipping Exchange will also accelerate the application of the "Belt and Road Initiative" shipping index in the economic and trade fields of countries and regions related to the "Belt and Road Initiative", encourage traders and shippers in various countries to use the "Belt and Road Initiative" shipping index for index linking when signing trade and transportation contracts, and make the index a hedging tool for managing market volatility risk.
The establishment of the information platform relies on a wider range of information sharing to create a data aggregation effect. In the process of promoting the application of the index, the Shanghai Airlines Exchange has simultaneously recruited other national institutions to participate in the compilation of the "Belt and Road Initiative" trade and freight index between countries and regions.
"Behind the realization of policy communication, facilities connectivity, unimpeded trade, financial integration and people-to-people connectivity, the flow of data and information is covered. Relying on the index platform and related information, jointly developing with countries and regions along the route, and creating the’Belt and Road Initiative ‘trade and freight big data platform will further upgrade data and information services," Zhang Page said.