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.

VCFI General

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In February, the Valencia Containerised Freight Index (VCFI) decreased by -1.51% compared to the previous month, reaching 1,752.72 points and showing a cumulative growth of 75.27%. The rise in freight rates is notable in Atlantic Europe (26.67%) and the Baltic States (15.43%), while there is a decrease in the Indian Subcontinent (-6.48%) and Central America and the Caribbean (-4.62%), among other areas.

As expected, freight rates were predicted to reach their highest point due to the usual increase in demand before and after the Chinese New Year (10-17 February) and the decrease in production activity in Asia. Freight rates have shown a tendency to return to their normal course, resulting in a fall at the end of February and beginning of March. The VCFI result for February clearly reflects this trend.

Despite a slight decline, freight rates remain high compared to previous years due to rising operating costs of shipping lines caused by escalating tensions in the Middle East. The shipping lines’ response to the attacks in the Red Sea has led to the reconfiguration of services and routes, resulting in increased fuel costs due to the adoption of longer alternative routes. Furthermore, it is noteworthy that the average price per barrel of Brent crude oil increased from $80.12 in January to $83.48 in February, representing a 4.2% increase. Meanwhile, the cost of VLSFO (Very Low Sulphur Fuel Oil) used in bunkering at major ports worldwide has increased by 3.2% from $641.03 in January to $661.85 in February, further increasing the pressure on shipping companies’ operating expenses.

Despite the shipping market being in the traditional ‘quiet period’ between Chinese New Year and the peak summer season, the demand for additional tonnage due to the Red Sea conflict remains a reality. This has led to a further decrease in the number of inactive container ships in the latter half of February. Although there has been a strong inflow of new construction, the supply of ultra-large container vessels remains limited due to the additional capacity absorbed by the Cape of Good Hope diversion. Alphaliner’s data from the end of February shows that there were no vessels above 18,000 TEU and only one unit above 12,500 TEU that were commercially inactive. Furthermore, 78 vessels with 177,295 TEUs were recorded as commercially inactive in their most recent survey dated 26 February. This figure represents only 0.6% of the entire container fleet, which is the lowest level recorded in the past 23 months.

According to Linerlytica, port congestion levels worldwide remain contained. During week 8, port congestion levels reached 1.41 million TEUs, which accounted for 4.9% of the total fleet. This figure is lower than in week 8 of 2023 when 1.72 million TEUs were immobilised due to port congestion.

Supply-side resilience in shipping helps to contain bottlenecks in the logistics industry and global supply chains. This is evidenced by the Banco de España’s Bottleneck Index, which remains significantly below the peak levels recorded during the pandemic.

VCFI Western Mediterranean

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The Western Mediterranean sub-index has increased by 11.73% compared to the previous month. The VCFI for the Western Mediterranean area has now reached 1,298.77 points, which is a 92.88% increase since the series began in 2018.

Regarding Valenciaport, the most recent data shows a slight decrease in exports to Morocco, stable exports to Algeria, and an increase in traffic to Tunisia.

VCFI Far East

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The Far East area has recorded an 8.58% increase, reaching 2,648.30 points. This represents a cumulative growth of 168.43% since January 2018. This contrasts with the significant rise in freight during January in this region, which was influenced by seasonal factors at the time. As expected, demand has slowed down after the Chinese New Year festivities, providing some relief to the industry. Valenciaport has noted a slight decrease in export traffic volume to China, the main trading partner in the Far East area, according to recent data. 

Considering the uniqueness of the current context, marked by the Red Sea Crisis, it is crucial to acknowledge the geopolitical conflict that has led to it and its uncertain evolution.