The Valencia Container Freight Index (VCFI) has elevated by 4.09% in March in comparison with the earlier month, and returns, after declining in February, to the upward development that has been the norm over the past 15 months. On this manner, the index stands at 4,428.46 factors and accumulates a development of 342.85% because the starting of the collection in 2018. As mirrored within the 2021 annual report, throughout this time the VCFI has been conditioned by the excessive demand for port site visitors, the worth of maritime gas, congestion in some precincts, disruptions in provide chains and the advanced worldwide surroundings. To this should be added the battle in Europe over the invasion of Ukraine which is mirrored, for instance, within the 14.71% enhance of the Index within the Atlantic Europe space.
On this line, inflationary tensions persist in lots of territories, pushed by the power part, the place European Brent has returned to file highs because the monetary disaster, standing at $113.61 with an increase of 20.67% in comparison with the earlier month. Thus, in keeping with the info supplied by Ship&Bunker, which takes as a reference the worth of bunkering (refuelling of ships at sea) within the 20 primary ports of the world, the price of IFO 380 (Intermediate Gas Oil) has risen from 591.5$ in February to 716$ in March, which represents a rise of 21.04%. The value of VLSFO (Very Low Sulphur Gas Oil) reached $915.5 in March in comparison with $781.5 the earlier month, a rise of 17.14%.
When it comes to capability on provide, the consultancy Alphaliner counted 59 idle vessels in mid-March with a complete of 204,977 TEU (normal 20-foot container), representing 0.8% of the whole lively fleet. This represents a rise in comparison with February, when there have been 101,419 TEUs and 48 idle vessels, 0.4% of the whole lively fleet.
So far as demand is worried, in keeping with the newest RWI/ISL Container Througput Index revealed on the finish of March and the Container Commerce Statistics (CTS), there was a big drop within the quantity of port site visitors in comparison with the earlier month. This decline was primarily because of the drop-in exercise in China because of the finish of the New Yr holidays and the closure of Shanghai because of the new outbreak of COVID-19. There was additionally a decline in site visitors in European ports because of the sanctions imposed on Russia for the invasion of Ukraine.
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On the identical time, and regardless of some contraction in sure ports, the excessive ranges of congestion proceed to behave as a limiting issue from an operational perspective to the availability of capability. In relation to the Spanish ports, the hauliers’ strike has led to a slowdown in business exercise for a number of weeks, with cargo accumulating within the ports and displaying excessive ranges of congestion.
Relating to the evaluation of the completely different areas that make up the VCFI, it’s value highlighting the rise in Atlantic Europe freight charges (14.71%), reaching file ranges due to the struggle in Ukraine on transport chains. Equally, a big enhance is noticed within the East Coast Africa Index (13.32%), as a direct consequence of congestion issues. As regards the US/Canada space (11.75%), freight charges have elevated because of the increase in import demand from Europe.
VCFI Western Mediterranean
The Western Mediterranean sub-index displays in March a rise of three.39% over the earlier month to 2,195.78 factors. Thus, it accumulates a development of 119.58% because the starting of the collection in 2018. In the course of the 12 months 2021, the index concentrated the very best will increase because the starting of the collection, nevertheless, originally of 2022, a sure containment was noticed, which has been reversed once more. This case happens in a context through which site visitors from Valenciaport to Morocco, Tunisia and Algeria has as soon as once more elevated.
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VCFI Far East
Within the Far East space, the VCFI decreased by 3.17%, following the development of the earlier month. On this space, the Index reached 3,641.62 factors, which is 264.16% larger than originally of the collection in 2018. On this line, it’s value highlighting the lower in Valenciaport’s export flows with China, its primary buying and selling associate, as has traditionally occurred after the Chinese language New Yr. Nonetheless, that is in all probability a one-off behaviour, so it’s anticipated that, when the Chinese language ports resume their operations, the evolution of freight charges can be altered.
Supply: Port Authority of Valencia