News
The composite Ningbo Containerized Freight Index (NCFI) quoted 2,401.9 points in Week 28, down 3.6% due to transport demand decreases across the board. On the selected 21 trade lanes from Ningbo to which the individual NCFIs are applied, five saw their freight rate indices rise, 14 saw theirs fall, and the remaining two saw theirs unchanged. As for the major ports along the so-called Maritime Silk Road, six saw their indices increase and the remaining 10 saw theirs decrease.
On the trades to Europe and the Mediterranean, major shipping companies have announced freight rate cuts for the second half of July. However, the Gemini Cooperation has had services back to the Red Sea and the Suez Canal, enlarging a wait-and-see mood in the market. The NCFIs stood at 2,347.3 points to Europe, down 5.1%; 2,253.9 points to the Eastern Mediterranean, down 4%; and 2,789.2 points to the Western Mediterranean, down 5.6%.
On the North America route, the successive freight rate hikes in the previous week gradually took effect, easing tonnage shortages. The NCFIs came to 2,918.8 points to the east coast, down 1.6%, and 3,881.3 points to the west coast, down 6.4%.
On the trade to the Middle East, geopolitical tensions have risen, facing market expectations on the safety of sailings in the Strait of Hormuz and exercising a break on spot rate decreases. The NCFI picked up 5.5% to 3,619.1 points.
On the route to the east coast of South America, demand declined, prolonging tonnage oversupply and notably lowering spot rates. The NCFI plunged 18% to 3,333.4 points.
The NCFI, an indicator for spot rates for container exports from Ningbo, is issued by the Ningbo Shipping Exchange (NBSE) with help from the Baltic and International Maritime Council (BIMCO) and was set at a baseline of 1,000 points in Week 10 of 2012.
