MoF, Korea-style Container Freight Index 'KCCI' Announced for the First Time

[Asia Economy Sejong=Reporter Dongwoo Lee] The Ministry of Oceans and Fisheries and the Korea Ocean Business Corporation have developed and announced for the first time the Korea Containerized Cargo Index (KCCI), based on Busan Port.

On the 7th, the Ministry of Oceans and Fisheries announced that the Korea Containerized Cargo Index for the second week of November recorded 2892.

The most widely used freight index globally, including in Korea, is the Shanghai Containerized Freight Index (SCFI). However, since the Shanghai Containerized Freight Index is based on Shanghai departure rates, it does not include freight information for intra-Asia routes such as Korea-Japan and Korea-Southeast Asia, leading to continuous calls for a Korea-based freight index.

In response, the Ministry of Oceans and Fisheries, together with the Korea Ocean Business Corporation, developed a new freight index, the Korea Containerized Cargo Index, based on container freight departing from Busan Port.

This index is calculated as a composite index consisting of a total of 13 routes, including Asia, North America, and Europe. It is calculated using freight rates announced by shipping companies registered in the Ministry’s Port Management Information System (Port-MIS) and freight information provided by professional logistics companies.

In particular, it reflects the conditions of intra-Asia routes such as Korea, China, Japan, and Southeast Asia, which are not covered by overseas freight indices like the Shanghai Containerized Freight Index, allowing Korean shipping companies and import-export businesses to more accurately understand freight conditions.

The Korea Containerized Cargo Index is expected to be used in transportation contract negotiations by Korean shipping companies and import-export businesses. Furthermore, as freight information accumulates in the future, it is anticipated to be useful in the long-term decision-making processes of Korean shipping companies, such as fleet operation planning.

Going forward, the Korea Containerized Cargo Index will be announced every Monday at 2 p.m. through the Korea Ocean Business Corporation’s website and other channels.

Yoon Hyun-soo, Director of the Shipping and Logistics Bureau at the Ministry of Oceans and Fisheries, said, "The Korea Containerized Cargo Index will greatly help our shipping companies and import-export businesses to more accurately grasp actual maritime freight information."