Ocean Freight rates continue global upward trend

Sea Freight rates continue to rise globally due to several factors, such as the container shortage and the economic pull of the United States, according to the Port Authority of Valencia (PAV).

In particular, the high demand for maritime transport in combination with the lack of empty containers, the shortage of capacity and equipment, the price of fuels, the problems of co-determination, the traffic increase and the congestion in several ports of the world, are the main factors for this continued increase in the freight rates.

In addition to the beyond factors common to all areas, the strong demand for manufactured goods from the US, made export traffic from the Port of Valencia to the US showing a strong upward trend, standing at levels well above those of the same period in 2019 and 2020.

Hence, the Valencia Containerized Freight Index (VCFI) for July has grown by 9.19%, making it the first year of growth in export freight from Valencia port. VCFI for July stands at 3.427,43 points representing a spike of 242.74% since the beginning of the historical series in January 2018.

More specifically, the index is growing in all geographical areas except the Eastern Mediterranean (-1.94%), while the greatest increase takes place in export freight rates with several areas of the American continent, as all of them reach growth rates of more than 5%.