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Research on the Correlation between China and Global Freight Shipping Price Indices

Author(s)

Zhaohan Ge, Shuhan Zhan*, Zijie Qu

Affiliation(s)

North China University of Technology, Beijing, China *Corresponding Author

Abstract

As an important indicator to measure the supply and demand of the shipping market and the price fluctuation, the shipping freight rate index has always been the core content of the research on shipping finance and maritime economy. The Tianjin Shipping Index (TSI) and the Baltic Dry Shipping Index (BDI) show the changing trajectory of the shipping market from a regional and global perspective, respectively. Based on the long-term data of Tianjin Shipping and Baltic Sea shipping price index, this paper establishes VAR model to quantitatively analyze the volatility correlation mechanism between them. In the long run, BDI Granger causes TSI, and the impulse responses are moderate and persistent, showing a complementary relationship. Based on this, it is necessary to further strengthen the monitoring and analysis of freight rate index, optimize the shipping network structure, enhance the ability to cope with global freight rate fluctuations, and alleviate the impact of global freight rate fluctuations on the domestic market.

Keywords

Shipping Freight Rate Index; Tianjin Shipping Index; The Baltic Dry Index; Linkage Relationship; VAR Model

References

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