Dalian Commodity Exchange (DCE) organized the “Seminar on COSCO Shipping Logistics Futures Business” on January 14 and 15. A total of 41 people including executives and business chiefs from COSCO Shipping Logistics Co., Ltd. (COSCO Logistics for short) took part in the seminar. The seminar is another measure of DCE and COSCO Logistics in intensifying two-way cooperation and exchange and making joint research and development (R&D) in shipping futures after signing a strategic agreement. It has allowed COSCO Logistics to deeply understand the futures market and its functions and get full preparation for jointly promoting the R&D and demonstration in shipping futures.
China is the largest container shipping country in the world and, among the world’s top 10 container ports, 7 are in China, with the annual export container cargo volume of over 40 million TEU (Twenty-foot Equivalent Unit), showing its market basis for engaging in shipping futures trading. In recent years, great fluctuations have been seen in the international shipping freight, which has brought some operational risks for domestic and overseas shipping enterprises and import and export trading companies. As a result, entity enterprises have a strong appeal for the listing of shipping futures instrument and the management of price fluctuations. Besides, as the COSCO container shipping market enjoys a high international and marketized level, an ordered industry development and full enterprise competition, it is suit for carrying out standard futures trading.
DCE started the R&D in shipping futures product with physical delivery system in 2013 and, after years of research and exploration, has made breakthroughs in futures contract and system design. DCE and COSCO Logistics signed a strategic cooperation agreement on November 26, 2018, to make all-round cooperation in the setting of futures delivery warehouses (factories), the R&D in shipping futures, and the information sharing and talent cultivation. Recently, DCE issued a notice to set COSCO Shipping Logistics Storage and Delivery Co., Ltd. as the designated delivery warehouse for LLDPE, PVC and PP, further propelling their cooperation. In the future, the two sides would accelerate the R&D and listing of shipping futures product to satisfy enterprises’ risk-avoiding demand and serve the sound and stable development of the shipping industry.
A COSCO Logistics officer taking part in the seminar said that enterprises had recognized the importance of making use of futures instrument to manage price risks, and they were actively studying and learning about the futures market. The seminar was of great help for enterprises to set up a futures system standard, cultivate futures talent and take part in relevant business in the future. Next, COSCO Logistics would continue to pay attention to the futures market and deeply participate in the R&D of the DCE shipping futures, with a view to make better use of the futures to manage freight fluctuation risks after the listing of the shipping futures.
A DCE officer said that the seminar marked the implementation of the strategic cooperation agreement between DCE and COSCO Logistics, which would help to improve large state-owned enterprises’ recognition of and participation in the futures market. Next, DCE would make in-depth industry survey, learn the shipping business, invite COSCO Logistics for shipping business training, and make a successful R&D in the shipping futures product through training and business interactions between the personnel of the two parties, thus further expanding the scope of serving the real economy.
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