24.06.06Average NCFI Jumped in May

The composite Ningbo Containerized Freight Index (NCFI) averaged 2,021.3 points in May, which jumped 54.9% from April and 187.5% rom May 2023, according to the Ningbo Shipping Exchange (NBSE). On the 21 trade lanes to which the individual NCFIs are applied, month-on-month increases were registered on 19 but decreases on the remaining two. The NCFIs improved on all of the 16 routes from Ningbo to major ports on the so-called Maritime Silk Road.

The NCFIs averaged 2,153.8 points to Europe in May, up 59% from April and 298.1% from May 2023; 2,018.5 points to the Eastern Mediterranean, up 35.3% from April and 132.8% from May 2023; and 2,518.1 points to the Western Mediterranean, up 40.1% from April and 150% from May 2023. On the routes to from Ningbo to Europe and the Mediterranean, spot rates continued to surge for the following reasons. There were capacity and container shortages due to blank sailings and empty container repositioning delays, while customers in destinations tried to replenish inventory goods, stimulating transport demand. Also, operators made two major freight rate hikes.

On the trade to North America, the SCFIs last month reached 2,189.9 points on average to the east coast, up 67.6% from a month earlier and 176% from a year earlier, and 3,018 points to the west coast, up 73.6% from a month earlier and 289.1% from a year earlier. There were space and container shortages on the trade as well, inventory replenishments were made in advance not to be affected by tariff increases. Also, shipping lines implemented freight rate hikes in early, mid- and late May.

The SCFI stood at an average of 1,972.3 points to the Middle East in May, up 19.8% from the previous month and 108.8% from the same month of 2023. Large solar panels were moved from Ningbo in early May, generating slot and container shortages that adversely impacted carriers, which were, in return, forced to reduce capacity and mildly increase freight rates.

The SCFI reached 4,942.7 points to Africa at the end of May, hitting a one-year high. The monthly average closed at 3,177.4 points, up 112.3% from April and 222.5% from May 2023. Transport demand was massive last month on the trade lane to South America. Vessels were, as such, relocated from Africa to South America, leading to space shortages and causing spot rates to soar on the route from Ningbo to Africa.

The NCFI represents freight rates for container exports from Ningbo, set at a baseline of 1,000 points in Week 10 of 2012.