Shanghai introduces China Shipping Prosperity Index

SHANGHAI International Shipping Institute has introduced the first index indicating the prosperity level of the shipping industry, Xinhua reported.

There are four indexes: China Shipping Prosperity Index (CSPI), China Shipping Confidence Index (CSFI), China Shipping Prosperity Alertness Index (CSAI) and China Shipping Composite Index (CSCI).

The institute has chosen typical carriers from the industry as samples for regular surveys to collect statistics for CSPI and CSFI. The two indexes reflect the current situation of the Chinese shipping industry and will be released on a seasonal basis. The value of index is between 0 and 200 with 100 as the critical value. An index higher than 100 indicates that the shipping industry is improving.

The latest survey by the institute showed that the CSPI in the fourth quarter of 2009 is 103.58, meaning the shipping industry is in a slightly more prosperous situation. Only 31.63 per cent of the carriers are confident while 55 per cent think that the situation will remain dim in the next quarter. The CSPI for the first quarter of 2010 is 102.78, down 0.8 compared to the last quarter.

CSAI and CSCI are prediction of the development trend of the industry. CSAI is worked out based on statistical figures closely related to the shipping industry such as the import and export value and Baltic Dry Index. The CSCI showed that the Chinese shipping industry has hit the bottom and is in a slow rise.

The general secretary of the Shanghai International Shipping Institute, Zhen Hong, said the power to influence the world still lies in the hands of foreigners even though China is emerging as an important country. But he still considers the new indices will help the domestic carriers in responding to cyclical fluctuations and retain a healthy growth.

(Source: www.schednet.com)