23.03.07NCFI Declines in Week 9

The Ningbo Containerized Freight Indices (NCFIs), an indication for container freight rates of 21 routes departing from the Chinese port of Ningbo-Zhoushan, went down on almost all routes in Week 9, although there were improvements on those to Thailand and Vietnam and others, according to the Ningbo Shipping Exchange (NBSE). The composite index fell 2.8% to 637.8 points. The indices increased on five of the 21 routes but decreased on the remaining 16. They rose for shipments to six major ports on the Maritime Silk Road but sank for those to 10.

On the route to Europe, demand recovered so slowly that there was still excess of shipping capacity. As spot rates for containers from Ningbo-Zhoushan continued to fall, the NCFI closed at 538.1 points, down 4%. The indices waned 1.8% to 1,017.1 points for containers to the western Mediterranean but improved 0.3% to 930.1 points for those to the eastern Mediterranean.

On the trade to North America, demand has begun rising again slowly. However, supply is still greater than demand, as shipping companies have re-deployed idled ships. Spot rates for exports from Ningbo-Zhoushan slid mildly, making the freight rate indices dip 3.7% to 745.3 points for containers to the east coast and 1.9% to 681.8 points for those to the west coast.

On the trade lane to the Middle East, container exports from Ningbo-Zhoushan before Ramadan, March 23-April 20, were fewer than expected. Spot rates on the route, as such, remained on a downward trend, going down 6.6% to 5,855.8 points.

On the route to Thailand and Vietnam, shipments from Ningbo-Zhoushan increased steeply, as Singkran, Thailand's New Year holidays, April 13-15, is approaching. Spot rates surged as a result, while the NCFI reached 447.1 points, a notable increase of 41.1%.