The SCFI index, formally the Shanghai Containerized Freight Index, is a weekly benchmark that tracks spot-market ocean freight rates for containers leaving the Port of Shanghai. It is published every Friday by the Shanghai Shipping Exchange (SSE) and uses a base value of 1,000 points, set to rate levels on October 16, 2009. A reading of 2,000 therefore means average spot rates out of Shanghai have roughly doubled since that baseline. Because Shanghai handles more export container volume than any other port in the world, the index has become one of the most closely watched gauges of global container shipping costs.
What the Index Measures
The SCFI reports rates on 15 individual shipping routes covering every major trade lane out of China: Europe, the Mediterranean, the U.S. West Coast, the U.S. East Coast, Southeast Asia, Japan, Korea, Australia and New Zealand, the Middle East, India and Pakistan, Latin America, Africa, Hong Kong and Taiwan, the Caribbean, and a catch-all category for other Asian destinations.
Most routes are quoted in U.S. dollars per twenty-foot equivalent unit (TEU), the standard container size in global logistics. The two U.S.-bound routes are the exception; those are quoted in dollars per forty-foot equivalent unit (FEU) because the North American market overwhelmingly ships in 40-foot boxes.1Shanghai Shipping Exchange. Shanghai Shipping Exchange – FAQ Alongside each route-level figure, the SSE publishes a single composite value that rolls all 15 readings into one number.
Every rate the SCFI reports is a spot-market rate — the price a shipper would pay to book space for near-term sailing, not a rate locked in under a long-term contract. That is what gives the index its sensitivity to short-term conditions.
How the Reading Is Built
The SSE collects pricing from a panel of international ocean carriers and large freight forwarders, selected for their scale and reputation and reporting under guidelines the exchange sets.1Shanghai Shipping Exchange. Shanghai Shipping Exchange – FAQ
What the Rate Includes
Each data point is the ocean freight rate plus a defined set of seaborne surcharges. The included surcharges cover fuel (Bunker Adjustment Factor, Fuel Adjustment Factor, Low Sulphur Surcharge), currency movements (Currency Adjustment Factor), peak season surcharges, war risk surcharges, port congestion surcharges, and canal transit fees for Suez and Panama.1Shanghai Shipping Exchange. Shanghai Shipping Exchange – FAQ
Landside charges are excluded. Terminal Handling Charges at both origin and destination, port security fees, and inland transport costs are all left out of the calculation.1Shanghai Shipping Exchange. Shanghai Shipping Exchange – FAQ If you are using the index to estimate a total delivered cost, remember that it captures the port-to-port piece only, not the first or last mile on land.
How the Composite Is Weighted
The composite is a weighted average across all 15 routes, with weights based on trade volume and the commercial importance of each lane. That weighting prevents a sharp price swing on a low-volume route from distorting the headline number. You can read the composite for a market-wide view or drill into a single route for the corridor that matters to your cargo.
How to Read a Move in the Index
Because it tracks spot rates, the SCFI reacts almost immediately to shifts in the balance between vessel capacity and shipper demand. A sharp climb in the composite typically points to one of two conditions: demand for container space has surged, often ahead of peak retail season or a tariff deadline, or supply has tightened because of port congestion, canal disruptions, or carriers pulling ships out of service.
A sustained decline usually points the other way — softening consumer demand or an oversupply of ships entering service. Logistics managers watch the index to decide when to lock in contract rates and when to stay in the spot market. Analysts and investors read it as a leading indicator for earnings pressure on import-heavy retailers and for inflation showing up in imported electronics, apparel, and household goods several weeks later.
Geopolitical disruptions register quickly. When Red Sea diversions forced vessels to reroute around the Cape of Good Hope, the SCFI captured the resulting rate spike within a week. Port labor disputes, canal blockages, and regional conflicts produce similar sudden movements.
How Businesses Use the Index
Index-Linked Container Contracts
The SCFI is the pricing reference for Index-Linked Container Contracts (ILCCs). In a traditional ocean freight contract, shipper and carrier agree on a fixed rate for a set period, often a year. In an ILCC, the rate floats with the published SCFI reading for the relevant route, usually within an agreed floor and ceiling, so both sides share the risk of rate swings. Common ILCC features include dampeners that soften week-to-week volatility, time-lagged adjustments tied to a trailing average, and caps that protect shippers from extreme spikes. The SSE publishes a contract template for parties incorporating index-based pricing.2Shanghai Shipping Exchange. Shanghai Containerized Freight Index These structures grew more common after the freight rate chaos of 2021 and 2022 pushed shippers and carriers away from rigid annual pricing.
Surcharge Notice on U.S.-Bound Cargo
When SCFI readings climb sharply, carriers often respond by imposing or increasing surcharges on U.S.-bound routes. Federal regulations limit how quickly those increases can reach shippers. Under 46 CFR 520.8, any new rate or surcharge that increases costs to shippers must be published at least 30 calendar days before it takes effect.3GovInfo. 46 CFR 520.8 – Effective Dates A carrier can apply to the Federal Maritime Commission for special permission to shorten the window, but must show good cause, and the FMC votes on each request.4Federal Maritime Commission. Commission Statement Regarding Strait of Hormuz Surcharges A sudden SCFI spike does not hit your next shipment immediately, but if the index has been climbing for several weeks, expect the surcharge to arrive on your invoices about a month after the initial move.
Freight Rates and U.S. Customs Duties
A higher SCFI reading does not raise the duty owed on imported goods. U.S. Customs calculates duties on the transaction value of the goods themselves, and international transportation costs, including ocean freight and marine insurance, are excluded from that calculation.5eCFR. 19 CFR 152.103 – Transaction Value The cost of loading and stowing cargo aboard the vessel is likewise excluded. Freight cost squeezes margins through the shipping line on your logistics invoice, not through the customs bill.
SCFI vs. CCFI
The SCFI is easy to confuse with the CCFI, the China Containerized Freight Index, since both come from the SSE on the same weekly cycle. Three differences matter most:
- The SCFI covers exports from Shanghai only; the CCFI draws from all major Chinese ports.
- The SCFI tracks spot rates exclusively; the CCFI blends spot and contract rates, which smooths short-term volatility.
- The SCFI uses an October 2009 base of 1,000 points across 15 routes; the CCFI uses a January 1998 base across 12 routes, giving it a longer historical timeline.
For a specific Shanghai lane or a near-term booking decision, the SCFI is the sharper tool. For quarter-over-quarter or year-over-year trend analysis on China’s export shipping as a whole, the CCFI gives a steadier read.
When It Publishes and Where to Find It
The SSE releases a new SCFI reading every Friday at 15:00 Beijing Time, with schedule adjustments announced ahead of Chinese statutory holidays.1Shanghai Shipping Exchange. Shanghai Shipping Exchange – FAQ The timing lets global markets absorb the numbers over the weekend before the next trading week opens.
The SSE’s own website posts the composite value, each route’s rate, and week-over-week percentage changes at no cost. Major financial terminals such as Bloomberg and Reuters carry the same data, usually paired with historical charts for year-over-year comparison. For anyone in importing, freight procurement, or commodity trading, watching the Friday release is one of the simplest ways to stay ahead of shipping cost trends out of the world’s busiest export hub.