News
24.09.06NCFI Plunges 12.7% in Aug.
The composite Ningbo Containerized Freight Index (NCFI) averaged 2,384.5 points in August, down 12.7% from July but up 224.2% from August 2023, according to the Ningbo Shipping Exchange (NBSE). On the 21 trade lanes from Ningbo-Zhoushan to which the individual NCFIs are applied, there were month-on-month increases on three but decreases on the remaining 18. The 16 routes to major ports on the so-called Maritime Silk Road all saw declines.
The NCFIs stood at an average of 3,138.5 points to Europe in August, down 13.6% from July but up 431.6% from August 2023; 2,160.2 points to the Eastern Mediterranean, down 14.5% from July but up 184.3% from August 2023; and 2,783.8 points to the Western Mediterranean, down 16.4% from July but up 211% from August 2023. On the routes to Europe and the Mediterranean, demand was weak at a time when there was sufficient shipping space. Freight rates, as such, went down over time.
The NCFIs amounted to 3,191.2 points on average to the east coast of North America in August, down 8.8% from July but up 196.4% from August 2023, and 3,646.8 points to the west coast of North America, down 14.6% from July but up 200.9% from August 2023. On the trade to North America, there was sufficient shipping capacity in early August, having spot rates remain on a downward trend. Shipping lines lifted freight rates in the middle of the month. On the route to the east coast, container movement was not brisk enough. Freight rates did increase but turned downward at the end of the month. On the other hand, freight movement increased on the route to the west coast, stabilizing spot rates toward the month end.
On the trade lane to the Middle East, the NCFI quoted 1,550.1 points on average last month, down 9.8% from July but up 178.2% from August 2023. There was excess capacity in early August. To attract cargo, therefore, carriers lowered freight rates. In the middle of the month, however, more tonnage was deployed, keeping spot rates falling until the end of the month.
On the route to Australia and New Zealand, the NCFI averaged 3,045.8 points in August, up 40% from July and 333% from August 2023. Container movement was stable, but in mid-August, there were several blank sailings and delays, tightening shipping space. Spot rates continued to increase for four consecutive weeks.