A renminbi forward freight agreement clearing service was launched by Shanghai Clearing House on Tuesday to help companies avoid and manage forward freight risks.

Such agreements are being introduced to adapt to the rapid expansion in cross-border use of the renminbi to give domestic firms a chance to directly participate in the forward freight agreement market.

Given approval by the People's Bank of China on Dec 10, 2012, Shanghai Clearing House started a trial operation of clearing services for over-the-counter renminbi forward freight agreements traded and settled in the Chinese currency.