The Port Authority of València (PAV) has reported an increase in export freight rates for the second consecutive month in December 2023.
This is reflected in the València Containerised Freight Index (VCFI), which measures the trend and evolution of freight rates in the Valencian precinct and stands at 1,239.93 points in December 2023, remaining consistent with levels recorded in the second quarter of 2020.
The VCFI has grown by 23.99 per cent from the beginning of the historical series in January 2018.
The Index also indicates a 9.64 per cent decline in export freight prices from Valenciaport’s piers to the Far East sector, which increased by 43.08 per cent in November 2023. Similarly, the Western Mediterranean sub-index declined by 6.49 per cent.
PAV noted that the VCFI at the end of 2023 does not yet reflect the changes caused by the Red Sea crisis; the observed growth is moderate, and the high volatility in freight rates has begun to have an influence at the beginning of 2024.
Valenciaport claimed that the Red Sea Crisis, dubbed the ‘perfect logistical storm’, is putting a pressure on supply chains and the global economy.
The Suez Canal is one of the world’s most significant routes for transporting consumer products, oil, and liquefied natural gas.
The conflict has prompted shipping firms to devise contingency plans to minimise the impact, choosing for a longer and more expensive alternative shipping route via the Cape of Good Hope, resulting in some congestion and delivery delays.
In December 2023, the Western Mediterranean sub-index decreased by 6.49 per cent compared to the previous month, following three months of straight gain.
Thus, the VCFI for the Western Mediterranean region stands at 1,447.90 points, reflecting a 44.79 per cent increase since the series began in 2018.
According to the most recent available statistics, Valenciaport’s export volume to Morocco has increased by 16.14 per cent (compared to the previous month). Tunisia’s exports fell by 36.40 per cent, while Algeria’s increased by 84.21 per cent.