- VCFI freight surged by +43.53%.
- The Western Mediterranean sub-index rose by +19.23%, hitting 1,726.32 points.
- Rising tensions led to increased operating costs for shipping.
In January, the VCFI, the benchmark for Mediterranean freight, surged by +43.53%, reaching 1,779.65 points. Since its inception in January 2018, the index has grown by +77.97%, reports Valencia Port.
Regional Growth Breakdown
The Far East experienced the highest spike at +125.49%, while the USA and Canada saw a notable increase of +98.14%.
Western Mediterranean Sub-index
Last month, the Western Mediterranean sub-index rose by +19.23%, hitting 1,726.32 points. Since 2018, it has accumulated a growth of 72.63%.
Reasons Behind the Surge
Rising tensions in the Middle East have led to increased operating costs for shipping lines, primarily due to longer alternative routes and heightened fuel expenses.
Implementation of the European Union Emission Trading System (ETS) in European ports has further inflated transoceanic route costs.
Insights on Far East Traffic
The Far East area experienced a remarkable surge of +125.49%, reaching 2,472.23 points in January. Since then it has seen a cumulative growth of 147.22%.
Exporters are adjusting shipments to accommodate longer transit times ahead of the Chinese New Year, anticipating a potential relief in demand post-festivities, which could lead to decreased freight rates.
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Source: Valencia Port
