Shanghai looks to create freight derivative markets

Chinese authorities have made regionally established commodity benchmarks a policy aim and now Shanghai is looking to create derivative products in the underlying freight markets

The global freight derivatives market underwent some depressed years with prices tumbling and market participants pulling out in line with broader economic growth but there was a notable pick-up in the market in the last quarter of 2013. This increase was largely attributed to the picking-up demand for freight from China.

China is the world's second largest economy and the single most important factor in commodity markets – for example it accounts for 40% of global base metal demand, according