• 2021 April 10 14:27

    The Valencia Containerised Freight Index (VCFI) increased by 17.48% in March

    • It stands at 1.971,96 points, the highest figure since the series began in January 2018
    • The price of fuel, the shortage of empty containers or congestion on the main routes are factors that have influenced the growth of the Index
    • The increase in freight rates in Latin America Pacific (45.68%), Central America and the Caribbean (40.08%), the United States and Canada (23.17%) and the Eastern Mediterranean (14.99%) is particularly noteworthy

    The Valencia Containerised Freight Index (VCFI) recorded an increase of 17.48% in March compared to the previous month and stands at 1.991,96 points, the highest figure since the beginning of the historical series in January 2018. The growth in freight rates occurs in all geographical areas analysed by the VCFI except in two (Atlantic Europe and Baltic countries). Fuel prices, congestion on the main routes in the East and West, the shortage of empty containers and the forecast of strong cargo demand for maritime traffic in the coming months are factors that have influenced the growth of the index.

    On the demand side, since December 2020, global port traffic growth seems to have stabilised and in February it remained at almost the same levels as in the previous month, according to the latest data published by RWI/ISL, which is produced by the Leibniz Institute for Economic Research. However, if we take the latest data from Valenciaport as a reference, we can observe a strength in the demand for export traffic (full containers) which experienced strong growth in February compared to January and are at much higher levels than in the same period of the previous year.

    On the supply side, the idle fleet stood at 2.6% in mid-March, while the commercially idle fleet reached 1.1%. According to Alphaliner, this is in line with shipping operators’ forecasts of strong cargo demand in the coming months, particularly in the run-up to the upcoming summer peak season. Shipping lines also expect the current problems of port congestion on the main East and West trades to persist into the summer months, which will further expand the already tight capacity supply and contribute to keeping the idle fleet at low levels.

    Another determinant of freight fluctuations is the price of oil. In March, the average value of a barrel of European Brent crude oil stood at 65.41 dollars per unit, 5.03% higher than the previous month, continuing the upward trend of recent months. Bunkering prices (refuelling of ships at sea) in March have shown a mixed performance. Thus, in the first half of the month, the cost of IFO 380 (Intermediate Fuel Oil) and VLSFO (Very Low Sulphur Fuel Oil) continued to rise, while in the second half of the month prices fell slightly.

    In terms of geographical areas, growth in Latin America Pacific (45.68%), Central America and the Caribbean (40.08%), the United States and Canada (23.17%) and the Eastern Mediterranean (14.99%) were particularly noteworthy. According to the latest traffic data from Valenciaport, export containers to these areas have experienced strong growth in February (latest available data), which may be pushing freight rates up with these areas. To this must be added the continuing shortage of containers and congestion on some routes.

    In this respect, the case of the United States should be noted, where stagnation problems persist in some of its main ports, causing negative effects on import chains. In addition, it should be added that spending on goods has experienced positive growth since June 2020, this being the driving force behind the boom in demand. An increase that continues in 2021, which makes it likely that the increase in demand for goods in the US will accelerate, which will continue to pose a challenge for import logistics chains.

    VCFI Western Mediterranean

    The Western Mediterranean sub-index rose again by 19.74% to 1,459.51 points. This makes four consecutive months of strong increases, accumulating 45.95% since the beginning of the series in January 2018. It should be noted that the performance of exports from Valenciaport to these markets continues to be positive, although in the last month it was more moderate. On the other hand, the global context of a shortage of empty containers and the difficulty in finding slots on ships continue to be the prevailing trend, which may be having a major influence on freight rates with this area.

    VCFI Far East

    As for the Far East sub-index, in March it again experienced strong growth of 8.05% and has now risen for eight consecutive months, standing at 3,180.31 points. Beyond the global problems in the maritime transport market, which seem to be affecting most areas, it should also be noted that export traffic from Valenciaport to the markets belonging to this area grew strongly in February. Thus, this increased demand may also be putting pressure on freight rates to these destinations.




2024 March 19

12:41 Wartsila Lifecycle Agreement provides operational support and cost savings for Korean container vessels
12:10 MOL, Idemitsu, HIF team up to develop e-fuel/e-methanol supply chain
11:42 MAN CEON digital platform receives Cyber Security Product Design Assessment certification from ABS
11:23 “K” Lline begins participating in joint study on liquefied CO2 marine transportation
10:48 Port of Los Angeles container volume increases 60% in Feb 2024
10:24 PortXL signs a partnership agreement with MINDbase
09:47 IMO to open regional office in Fiji to serve the Pacific

2024 March 18

18:13 Brunvoll propulsion chosen for ESVAGT's growing fleet of SOVs
17:42 ADNOC signs second long-term Heads of Agreement for Ruwais LNG Project
17:37 Cemre Marin Endustri shipyard holds launching ceremony for CMAL's MV Isle of Islay
17:24 Fortescue successfully conducts world’s first use of ammonia as a marine fuel in a dual-fueled ammonia-powered vessel in the Port of Singapore
17:02 APL updates on European Union’s Import Control System 2
16:03 MED Marine contracted to build MED-A2575 series tug for SVS Maritime
15:31 Hanwha Ocean and BV join hands to develop a 270K LNG carrier
15:17 HD Korea Shipbuilding awarded contracts for three VLACs
14:18 Port of Skagen and Stillstrom partner to decarbonise anchorage zone with offshore charging solutions
13:22 Sanmar delivers 6th battery electric power tugboat to Norwegian operator
13:16 COSCO SHIPPING Lines announces the launch of OCEAN Alliance DAY 8 product this year
12:21 Dutch offshore wind farm approved by LR
11:39 ClassNK awards first-ever notation for improvements in living and working environment to Fuyo Kaiun's bulk carrier "ELETTRA"
11:31 Davie strengthens Québec’s shipbuilding industry by supporting the reorientation of AFCDC
10:44 Storylines and Brodosplit shipyard renew ship building contract to construct private residence ship
10:25 BOEM announces environmental review of proposed wind energy project offshore New Jersey
09:51 First ‘flying’ electric ferry to debut in New Zealand in 2025

2024 March 17

16:31 Norwegian Shipowners' Association names Harald Fotland as its President
15:22 ABS Wavesight Nautical Systems now supports fully digital, streamlined SIRE 2.0 inspections
14:15 TechnipFMC selected by NEP to deliver the first all-electric iEPCI for CCS
13:03 US sanctions shipping company, targeting Iran and Houthi rebels
11:01 The first hybrid electric vessel built in South America will use a Corvus battery system
09:47 Kalmar and Forterra sign JDA for autonomous terminal tractor

2024 March 16

16:24 The Netherlands selects Naval Group for its submarine replacement program
15:41 Equinor exercises options to extend four-year drilling contracts
14:17 GONDAN Shipbuilders hosts launching ceremony for Edda Wind's CSOV C503
13:47 Van Oord, Van Aalsburg partner to further develop circular fascine mattresses
12:13 Snam wins "A" raing in CDP's Suppliers Engagement Rating for efforts against climate change
10:54 ULSTEIN unveils new subsea vessel for offshore energy tasks

2024 March 15

18:07 DNV gives nod to Friede & Goldman BargeRack solution
18:02 New partnership enables faster offshore wind installations in the U.S.
17:53 First production line at ‘World’s Largest Monopile Factory’ to go live in July
17:21 Brunvoll DP2 upgrades for more Mokster vessels
16:55 CMA CGM to suspend its calls at Port au Prince, Haiti
16:03 GEFO's LNG DF chemical tanker Tosca gets Green Award
15:19 CEVA Logistics develops new vehicle logistics business at the Port of Dunkirk
14:11 MPA: SaR operation continues for a missing crew member of the Liberia-flagged UTOPIA
13:07 To develop the Far East it makes sense to build a new shipyard in the country’s eastern regions, President Putin said
12:48 World’s first use of ammonia as a marine fuel in a dual-fuelled ammonia-powered vessel in the Port of Singapore
11:39 COSCO Shipping calls Port of Genoa, Italy with 20,000 TEU vessels on regular basis
10:03 DMC contracted to supply rudder systems for the world’s largest PCTCs

2024 March 14

18:04 Shearwater awarded seismic survey for UK carbon capture and storage project
17:15 UAE, world leaders discuss maritime corridor for aid to Gaza
16:05 Marine fuel sales at Singapore drop to a three-month low in February
15:43 World Shipping Council selects NCB for liner shipping Cargo Safety Program
15:00 ZIM reports results for 2023
14:57 DP World announces 2023 results
14:29 HaiSea unveils new operations facility for the world’s greenest tugboat fleet
13:44 DEME awards KENC with engineering and fabrication scope on multiple offshore wind installation projects
13:25 MABUX: Bunker Outlook, Week 11, 2024
12:43 Wartsila Lifecycle Agreement to support optimised low-emission operations for two P&O Ferries vessels
11:35 Hapag-Lloyd transport volumes up by 0.5% to 11.9 million TEU in 2023
10:51 NYK and Astomos Energy christen new dual-fuel LPG carrier
10:25 Port of Long Beach container volume up 24.1% to 674,723 TEUs in Feb 2024

2024 March 13

18:02 Lebanese, French officials float a plan to rebuild Beirut port nearly 4 years after huge explosion
17:23 Ascenz Marorka obtains type approval for cyber-security from Bureau Veritas for its digital solutions
16:58 USDOT announces $500 mln for ports available through the Port Infrastructure Development Program
15:44 RINA wins contract to create global investment plan for cruise sector
15:23 Hede International Shipping enters the Transpacific container trade
14:43 Concordia Damen wins contract to deliver a CDS2410 River Pusher to Transporte Fluviales Frey Bentos
14:13 CMA CGM Group launches its first loyalty program SEA REWARD
13:13 Cargill posts results of the six-month test period of the world’s first wind-powered ocean vessel
12:24 Rotterdam's Gate Terminal sees need for more LNG bunkering capacity at Rotterdam