The Valencia Containerised Freight Index (VCFI) for the month of June decreases slightly in a scenario in which the activity of the maritime sector is marked by the geopolitical situation, but in which an improvement in the world economy is observed.
Thus, in the sixth month of the year, this price index, which is based on export prices recorded by the Port of València in 13 geographical areas around the world, stood at 1,585.67 points, representing a monthly decrease of -1.30% and an accumulated growth of +27.8%, since the beginning of the year.
Valencia Containerised Freight Index (VCFI)
This variation in the value of the index is unevenly distributed over the time horizon of the data
This variation in the value of the index is unevenly distributed over the time horizon of the data, as well as in the geographical areas that make up the index.
In this regard, the largest declines were observed in the United States and Canada, with a decrease of -23.45%, followed by the Far East with a drop of -13.82%, and Africa East Coast with a decrease of -6.11%. In contrast, the Middle East showed an increase of +21.08% and the Eastern Mediterranean grew by +15.37%.
VCFI Commentary
The VCFI Commentary for the sixth month of the year notes that the World Bank’s June 2024 ‘Global Economic Prospects’ report, ‘sees an improving global economy stabilising after several years of overlapping negative shocks, and despite geopolitical tensions and high interest rates. With this, global growth is projected to remain stable at 2.6% in 2024’.
On the other hand, the Commentary further notes that, in recent weeks, there has been a marked increase in demand for container shipments.
According to the latest reading of the RWI/ISL Container Throughput Index, ‘an increase in port traffic has been observed compared to the preceding month. This increase in global container traffic is evidence of a further recovery in world trade in the second quarter, which should particularly support the economic recovery in Europe’.
VCFI Western Mediterranean
As for Valenciaport, the most recent data indicate an increase in exports to Morocco
As for the Western Mediterranean sub-index, it shows a drop of -3.67% compared to the previous month. This brings the VCFI for the Western Mediterranean area to 1,838.17 points.
As for Valenciaport, the most recent data indicate an increase in exports to Morocco, while a notable drop in cargo to Tunisia is observed. In addition, there is a slight increase in activities related to Algeria.
VCFI Far East
In the Far East area, a decrease of -13.82% was recorded, reaching 2,032.45 points.
This decline is a consequence of a reduction in container traffic in China, also reflecting lower throughput and demand in the region.