- According to Baltic Exchange, The Ningbo Containerised Freight Index (NCFI), compiled by the Ningbo Shipping Exchange and promoted by the Baltic Exchange, provides a comprehensive analysis of freight rates for 20ft, 40ft, and Hi-Cube containers on key global trade routes.
- This index, reported every Friday at 1600 (Beijing) except during Chinese holidays, serves as a benchmark for understanding shipping trends and market dynamics.
The latest report reflects the following changes in freight rates compared to the previous week:
- Ningbo – Europe: The rate dropped by 4.42%, settling at $2124.11, highlighting softer demand on this major trade route connecting Ningbo with Hamburg and Rotterdam.
- Ningbo – West Mediterranean: A 1.69% rise was observed, bringing the rate to $2493.89, attributed to stronger volumes to ports like Barcelona, Valencia, and Genoa.
- Ningbo – East Mediterranean: Rates experienced a marginal decline of 0.09%, reaching $1987.62, maintaining relative stability for destinations including Piraeus and Istanbul.
- Ningbo – Middle East: A significant increase of 14.87% was recorded, with rates climbing to $1268.11. This jump reflects heightened activity and demand for ports like Dammam and Dubai.
Port Coverage
The NCFI covers four key trade lanes connecting Ningbo to major global ports:
- Ningbo – Europe: Serving Hamburg and Rotterdam
- Ningbo – West Mediterranean: Covering Barcelona, Valencia, and Genoa
- Ningbo – East Mediterranean: Linking Piraeus and Istanbul
- Ningbo – Middle East: Connecting Dammam and Dubai
Data Compilation and Contributors
The index is based on transactional data submitted by prominent logistics companies, including:
- CCL Logistics Co
- Headwin Logistics Co., Ltd
- Ningbo E-Union Group of China
- Zhejiang Xinggang International Freight Co., Ltd
- Perfectever Logistics (Ningbo) Co., Ltd
- Ningbo Jet Express International Freight Forwarding Co., Ltd
- Dashing International Logistics
- Huanji International
- De Well Group
- Whale Logistics Co., Ltd
- Sinotrans Ningbo Logistics Co., Ltd
Included and Excluded Surcharges
The total ocean freight rates reported in the NCFI include a range of surcharges such as:
- Bunker adjustment factor/fuel adjustment factor/low sulfur surcharge
- Emergency bunker surcharge/emergency bunker additional
- Currency adjustment factor/Yen applicable surcharge
- Peak season surcharge
- War risk surcharge
- Port congestion surcharge
- Suez and Panama Canal transit fees/surcharges
However, certain costs are excluded from the freight rates, including:
- Terminal operation fees
- Security charges
- Origin received charges
- Inland point intermodal fees
- Booking fees
- Customs clearance
Analysis and Impact
The weekly fluctuations in the NCFI reflect shifting market dynamics influenced by global demand patterns, geopolitical factors, and seasonal trends. The significant increase in the Middle East lane highlights a surge in regional activity, whereas the decline in Europe-bound rates suggests a potential softening in demand. The index continues to provide valuable insights for stakeholders in the logistics and shipping industries, helping them navigate the complexities of global trade.
This week’s data underscores the importance of the NCFI as a reliable resource for analyzing freight rate trends, offering transparency and aiding decision-making in the competitive world of container shipping.
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Source: Baltic Exchange
