China-based Shanghai Shipping Exchange (SSE) plans to launch indexes to track international dry bulk and oil tanker rates in 2012, Seatrade Asia online reports. The Chinese bourse's move is seen as an attempt to challenge London's Baltic Exchange.
SSE will start trading of derivatives tied to those indexes in May or June next year, according to Yu Jun, president of Shanghai Shipping Freight Exchange. The products will track shipments to China from Brazil, Australia and the Middle East.
Yu said the new Chinese instruments are needed to help importers of raw materials mitigate the risk from fluctuations in freight rates.
In June this year, Shanghai introduced derivatives tied to container shipping indexes, tracking spot rates on 15 routes including Europe, the Mediterranean and the US.
SSE will start trading of derivatives tied to those indexes in May or June next year, according to Yu Jun, president of Shanghai Shipping Freight Exchange. The products will track shipments to China from Brazil, Australia and the Middle East.
Yu said the new Chinese instruments are needed to help importers of raw materials mitigate the risk from fluctuations in freight rates.
In June this year, Shanghai introduced derivatives tied to container shipping indexes, tracking spot rates on 15 routes including Europe, the Mediterranean and the US.