News
The composite Ningbo Containerized Freight Index (NCFI) closed at 1,817.7 points in Week 37, which plunged 10.2% from the previous week and has remained on the decline for four weeks running, according to the Ningbo Shipping Exchange (NBSE). On the 21 trade lanes from Ningbo to which the individual NCFIs are applied, there were increases on two but decreases on the remaining 19. On the 16 routes to major ports on the so-called Maritime Silk Road, there were decreases on all.
The NCFIs stood at 1,842.3 points to Europe, down 17.3%; 1,470.6 points to the Eastern Mediterranean, down 17.2%; and 1,904.5 points to the Western Mediterranean, down 15.2%. On the routes to Europe and the Mediterranean, container movement was so weak that capacity supply was greater than cargo demand, forcing freight rates to fall more significantly.
On the route to North America, the NCFIs came to 2,578.8 points to the east coast, down 9%, and 3,179.2 points to the west coast, down 3.9%. At a time when capacity oversupply remained, cargo destined to the east coast is being shifted to the west coast due to scheduled International Longshoremen’s Association (ILA) strikes in October. As such, spot rate declines were milder on the route to the west coast.
The NCFI plunged 26.5% to 915.4 points to the Middle East. Capacity supply was greater than cargo demand on the trade as well. Shipping lines continued to decrease freight rates to secure cargo.
The NCFI declined 23.6% to 864.5 points to India and Pakistan. Direct sailing were added when there was limited demand, making spot rates plunge.
