News
The composite Ningbo Containerized Freight Index (NCFI) closed at 921.2 points in Week 16, according to the Ningbo Shipping Exchange (NBSE). The index, which was set at a baseline of 1,000 points in Week 10 of 2012, declined 4.2% from the previous week as demand shortages on most of the trade lanes from Ningbo caused freight rates to fall.
On the selected 21 trade lanes from Ningbo to which the individual NCFIs are applied, three saw their freight rate indices rise, and the remaining 18 saw theirs fall. As for the major ports along the so-called Maritime Silk Road, six saw their indices increase, but the remaining 10 saw theirs decrease.
On the routes to Europe and the Mediterranean, there were so limited container movements that shipping companies adjusted freight rates to enhance efforts to secure cargo. On those to the Mediterranean, shipping capacity was reduced to maintain freight rate levels. The individual NCFIs slid 10.1% to 839.7 points to Europe; 0.9% to 1,004.5 points to the Eastern Mediterranean; and 2.1% to 1,326.7 points to the Western Mediterranean.
On the trade to North America, carriers considerably curtailed shipping capacity to maintain freight rates. The NCFIs declined a minute 1% to 1,088.5 points to the east coast and 0.5% to 1,216.4 points to the west coast.
On the trade lane to the Middle East, there was an oversupply of capacity, leading to declines in spot rates. The NCFI waned 5.9% to 854.1 points.
On the route to India and Pakistan, increased demand brought about space shortages and higher spot rates. The NCFI, as such, picked up 5.9% to 1,347.6 points.
