NCFI Weekly Update: Freight Rates Witness Sharp Declines

By
Mfame Editor
-
12

  • The Ningbo Containerised Freight Index (NCFI) reports significant weekly decreases across key shipping routes, with the largest drop being -16.74% on the Ningbo-Europe route.
  • The index, compiled by Ningbo Shipping Exchange and supported by the Baltic Exchange, reflects real-time transactional data and incorporates several ocean freight surcharges.
  • Routes covered include Europe, the Mediterranean (East and West), and the Middle East, with varying ports and logistics contributors shaping the index.

The Ningbo Containerised Freight Index (NCFI) is a critical benchmark for tracking weekly fluctuations in container freight rates. Compiled by the Ningbo Shipping Exchange and supported by the Baltic Exchange, this index provides insights into the dynamics of ocean freight costs, including key surcharges and exclusions. With coverage spanning routes to Europe, the Mediterranean, and the Middle East, the NCFI highlights trends crucial for stakeholders in global trade logistics, reports Baltic Exchange.

Weekly Rate Changes Across Routes

The week ending January 10, 2025, saw notable declines in freight rates on all major routes:

  1. Ningbo-Europe: Rates fell to 1642.85, a sharp 16.74% drop from the previous week.
  2. Ningbo-West Mediterranean: A decrease of 8.17%, bringing rates to 2168.12.
  3. Ningbo-East Mediterranean: Rates reduced by 10.28%, ending at 1657.71.
  4. Ningbo-Middle East: Experienced a decline of 15.85%, with rates at 1057.16.

Ports Served by Each Route

Each route connects Ningbo to specific ports:

  1. Europe: Hamburg and Rotterdam.
  2. West Mediterranean: Barcelona, Valencia, and Genoa.
  3. East Mediterranean: Piraeus and Istanbul.
  4. Middle East: Dammam and Dubai.

Contributors to the Index

The index is built on transactional data from prominent logistics providers, including:

  1. CCL Logistics Co
  2. Headwin Logistics Co., Ltd
  3. Zhejiang Xinggang International Freight Co., Ltd
  4. Perfectever Logistics (Ningbo) Co., Ltd
  5. Dashing International Logistics, among others.

Surcharges Incorporated in the Rates

Ocean freight costs include:

  1. Bunker adjustment factor (BAF) and fuel adjustment factors.
  2. Emergency bunker surcharge (EBS) and seasonal surcharges.
  3. Currency adjustment and canal transit fees (Suez and Panama).

Exclusions from Ocean Freight Rates

Certain charges are excluded, such as:

  1. Terminal operation fees and inland transport charges.
  2. Booking fees and customs clearance costs.

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Source: Baltic Exchange