News
The composite Ningbo Containerized Freight Index (NCFI) averaged 2,732 points in July, up 0.5% from June and 301.9% from July 2023, according to the Ningbo Shipping Exchange (NBSE). On the 21 trade lanes from Ningbo to which the individual NCFIs are applied, increases were registered on six and decreases on the remaining 15. On the 16 routes from Ningbo to major ports on the so-called Maritime Silk Road, there were increases on those to four and decreased on those to the remaining 12.
The average NCFIs stood at 3,632.2 points to Europe in July, up 15.9% from June and 589.6% from July 2023; 2,525.4 points to the Eastern Mediterranean, up 2.9% from June and 239.2% from July 2023; and 3,330.7 points to the Western Mediterranean, up 4.2% from June and 284.2% from July 2023.
The trade lane to Europe suffered a container shortage in the first half of the month. On those to the Mediterranean, meanwhile, containers on long-term contracts were transported steadily, stabilizing spot rates from the middle through the end of the month. In response to Mediterranean Shipping Co. (MSC), which had announced that it would leave freight rates on the U.S. West Coast trade unchanged, most carriers lowered freight rates to Europe and the Mediterranean.
On the route to North America, the NCFIs amounted to an average of 3,498.7 points to the east coast in July, up 15.4% from June and 280.9% from July 2023, and4,268.4 points to the west coast, down 0.6% from June but up 328.6% from July 2023.
On the route to the east coast, supply and demand were balanced in the first half of the month, keeping spot rates at high levels. In the middle of the month, however, freight movement became weaker, urging carriers to decrease freight rates each week to secure cargo. On that to the west coast, investments were made consistently to increase transport capacity, declining spot rates for four consecutive weeks.
On the trade to the Middle East, the NCFI came to 1,718 points on average in July, down 19.8% from June but up 181.5% from July 2023. Spot rates continued to fall from June to early July. In the middle of the month, however, there was a huge increase in solar panel carriage. The supply-demand balance improved as a result, temporarily recovering spot rates at the end of the month.
