The VCFI is the index created by the Port Authority of Valencia to reflect the evolution of the market rates for the export of full containers by sea from Valenciaport. VCFI stands for Valencia Containerised Freight Index. This index will serve shippers as a tool to predict the evolution of freight rates within their markets of interest, which is a key determinant of the cost of their export operations. On the other hand, it will also be useful for operators that offer such services, providing a benchmark for the evolution of their own freight rates and those on the market.

 

Participating companies

 

Methodology

Conceptually, the VCFI is a quantitative index that enables the objective measurement and comparison of the data relating to sea freight rates from the port of Valencia.  This index has been created based on information obtained from primary data sources, formed by twelve top level panelists that operate in the port of Valencia, including freight forwarders and shipping companies. On a monthly basis, the panelists send the freight rate data of the month ending at the request of the Valenciaport Foundation. The composite index is calculated after receiving and checking the individual monthly data on the export freight rates for each of the ports, obtaining the average freight rates for each port, which will be entered into the composite index with its corresponding weighting. Taking into account that the freight rates of certain sea routes are negotiated in dollars, the exchange rates published monthly by the European Central Bank will be used for conversion to the euro. The rate provided by the panelists includes the ocean freight spot rate and the following surcharges:

  • Bunker Adjustment Factor (BAF)/ Fuel Adjustment Factor (FAF)/ Low Sulphur Surcharge (LSS)
  • Emergency Bunker Surcharge(EBS)/ Emergency Bunker Additional (EBA)
  • Currency Adjustment Factor(CAF)/ Yen Appreciation Surcharge (YAS)
  • Peak Season Surcharge(PSS)
  • War Risk Surcharge(WRS)
  • Port Congestion Surcharge (PCS)
  • Suez Canal transit Fee/Surcharge (SCS)/ Suez Canal Fee (SCF)/ Panama Transit Fee (PTF)/ Panama Canal Charge (PCC).
Comment of the month

The Valencia Containerised Freight Index (VCFI) shows the evolution of all-in maritime spot freight rates in the container export market with maritime cargo from Valenciaport with the 13 main geographical areas it connects with.

The chart shows the monthly evolution of the index from January to August 2018. Since the objective of the VCFI is to show the trend of the export freight market from Valencia, an index number has been built which takes base 1000 in January 2018, the first month of the period.

While in July the index stood at 1,069.26 points, with a negative rate of variation of 1.02% compared with the previous month, the VCFI recovers the growing trend in August, reaching 1,081 points, with an increase of 1.19% compared to July. It should be noted that from January to August the accumulated growth rate stands at 8.19%, confirming the trend that began in April in international freight markets, with the exception of the slight downturn suffered in July (see above).

When analysing the evolution of freight rates by geographic export areas from Valenciaport, the growth experienced in freight towards America and Africa was accentuated further in August, a growing trend with these markets that has been seen since April. Conversely, this situation contrasts with the notable drop in freight rates experienced in the European market that, despite the general increase in June, returned to negative values in July and August. In this sense, these trends are in line with those published by the Shanghai Container Freight Index over the last few weeks of August.