Shipping Index Futures Margin & Contract Specifications

What Are Shipping Index Futures?

Shipping index futures are financial derivative products launched by the Taiwan Futures Exchange (TAIFEX). They track the Shipping Industry Market Capitalization–Weighted Stock Price Index (commonly referred to as the Shipping Index). The index is calculated using a market-cap weighted methodology, meaning companies with larger market capitalization have a greater influence on index movements.

Factors Affecting the Price of Shipping Index Futures

1. Freight Rate Indices

Shipping companies’ revenues mainly come from freight rates, making stock prices highly correlated with international shipping rate indices.

• The Shanghai Containerized Freight Index (SCFI) and the Freightos Baltic Index (FBX) reflect shipping costs for consumer goods, electronics, and other containerized cargo.

• The Baltic Dry Index (BDI) reflects the cost of transporting bulk commodities such as iron ore, coal, and grain, and is closely linked to global industrial activity and infrastructure demand.

When freight rates rise, shipping companies’ earnings increase, and shipping index futures tend to move higher in tandem.

2. Supply and Demand Dynamics

Global economic growth, seasonal demand such as pre-holiday stocking ahead of Thanksgiving and Christmas, and import–export data from major economies (e.g., China and the U.S.) all influence shipping index futures. Strong export activity is bullish for shipping index futures, while weak trade is bearish.
On the supply side, new vessel deliveries, scrapping of older ships, and environmental regulations affect shipping capacity.

• Excessive newbuild deliveries can lead to oversupply, suppress freight rates, and pressure shipping index futures.

• Increased scrapping reduces vessel supply, forcing shippers to pay higher freight rates to secure capacity, thereby lifting shipping index futures.

• Environmental regulations—such as International Maritime Organization (IMO) decarbonization rules—may force older vessels to slow down or exit the market, effectively reducing capacity and supporting shipping index futures.

3. Costs and Macroeconomic Factors

Fuel accounts for roughly 20%–30% of shipping companies’ operating costs. A sharp rise in oil prices—such as Brent crude—can erode profitability unless higher costs are passed on through freight rates.
Shipping is typically priced and settled in U.S. dollars, so currency movements matter. When the dollar strengthens and the New Taiwan dollar weakens, shipping companies converting USD revenues back into TWD benefit from foreign exchange gains, which supports the shipping index.
The shipping industry is also capital-intensive and highly leveraged (vessels are expensive). Rising interest rates increase interest expenses, which is generally negative for shipping index futures.

4. Geopolitical Risks and Unexpected Events

Geopolitical events and disruptions often cause sharp fluctuations in freight rates. Examples include blockages of the Suez Canal, drought-related low water levels in the Panama Canal, or Red Sea crises that force vessels to reroute around the Cape of Good Hope. Longer routes reduce effective shipping capacity, pushing freight rates higher.
Wars and sanctions can disrupt energy transport routes and raise insurance costs, affecting freight rates and, in turn, shipping index futures prices.
Labor actions—such as dockworker strikes on the U.S. East Coast—can cause port congestion, reduce container turnover, and drive up freight rates, lifting shipping index futures.

Shipping and Transportation Sector Futures Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Domestic Futures

Shipping and Transportation Sector Futures Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for Shipping and Transportation Sector FuturesFutures.

Shipping and Transportation Sector FuturesLast Trading Day

Futures