Container Shipping Index Futures Continue to Rise for 10 Consecutive Days, Exchange Announces Investigation
The container shipping index futures have been on a relentless upward trajectory, rising nearly 100% for 10 consecutive trading days. The surge in futures has caught the attention of the exchange, with the announcement that it will investigate customers during the session. This news comes as a warning to be cautious of sharp fluctuations as the holidays approach.
The rally is showing no signs of slowing down as the main container shipping index (European line) futures have increased by 96.9% in the past 10 consecutive trading days. The main contract EC2404 hit the daily limit again on December 27, signaling the continued strength of the market.
In a rare move during the session, Shanghai Energy announced that it will investigate two customers suspected of violating regulations. This marks the first time that customer investigations have been mentioned in recent rounds of regulatory announcements on trading container index (European line) futures. According to industry professionals, “opening an investigation” indicates that disciplinary sanctions will be imposed. The exchange will make a real-name announcement of the investigation results, which may affect the ability of the parties involved to work in the capital market.
While the recent rise in spot prices has guided the futures market to continue strengthening, analysts urge caution. Gao Mingyu, chief energy analyst at SDIC Essence Futures, notes that while the market expects the impact of current events to extend the peak season into the new year, the decline in demand during the traditional off-season may also help smooth the supply gap. Additionally, Du Bingqin, an energy analyst at Everbright Futures, emphasizes the need to distinguish between spot freight rates and futures prices, cautioning that the rise in spot prices has driven futures prices without a direct correlation.
The exchange has also taken measures to adjust the price limit and trading margin ratio. As trading volume continues to rise, these adjustments are aimed at managing the risk associated with the surging futures market.
Looking ahead, analysts warn investors to be mindful of the evolving geopolitical events and the potential for significant market fluctuations in the short term. The Red Sea crisis has led to deviations in shipping schedules, with only a small number of airlines having resumed sailing, indicating continued market disruption.
As the New Year’s Day holiday approaches, investors are advised to evaluate their risks, exercise caution, and adjust their positions accordingly. With significant fluctuations on the horizon, rational participation in the futures market is essential for mitigating risks and managing expectations.