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Valenciaport: “Maritime Transport Indices Are Key To Identify Trends And Make Decisions In The Port Sector”

Valenciaport: “Maritime transport indices are key to identify trends and make decisions in the port sector”

Source: Valenciaport
València, June 3, 2021 – The Valencia Port Authority (APV) and the Valenciaport Foundation have held this Thursday the seminar “Tools to analyze the maritime market” with the aim of presenting the latest advances in statistical indicators such as indices to analyze freights or port connectivity that are available to the port community as analytical tools that facilitate decision-making. The president of the PAV, Aurelio Martínez,
explained that “the main objective of all these indices is to try to interpret the evolution of the market in its broadest conception (freight, connectivity, efficiency…), and to anticipate as far as possible the decisions to be made by the agents operating in it. For example, the freight market has always shown significant volatility, more or less pronounced depending on the type of merchandise transported, accompanying world economic cycles, which since the 2008 crisis has seen a considerable shortening of these cycles ”. In this sense, the president of the PAV has set the example of the China Containerized Freight Index(CCFI) that between December 2018 and May 2021, the nominal freight index has gone from 750 to 3,496, an increase of 465%, while between 1998 and 2018 they fell by 20%, a sign that currently the cycles they are more volatile and shortened. “Currently we have excessive opinion and little information based on objective data. For this reason, it is essential to be based on indices with a very elaborate methodology and with objective data from recognized sources ”, explained Martínez. According to the United Nations World Maritime Organization, international maritime transport represents approximately 80% of world freight traffic. It remains the most efficient and cost-effective system and is the safest and lowest-cost means of international freight transport that encourages trade between nations while contributing to prosperity. “For this reason, it is so necessary to have instruments for analyzing this traffic to contemplate all the variables and flows of the maritime sector, key in international relations. These indicators are key to make cross-sector and sector comparisons, identify long-term trends and, above all, help decision-making ”, added Martínez. In this sense, the PAV demonstrates, once again, with the publication of periodic studies and indexes, its commitment to providing regular and reliable information at the service of companies and the port community. Tools to analyze the market Following this line, Valenciaport has developed two indices to analyze the port market. On the one hand, the Valencia Containerized Freight Index (VCFI), which measures the evolution of containerized maritime export prices from Valenciaport. Amparo Mestre, director of Market Intelligence at the Valenciaport Foundation, has made a point in the behavior of freight in 2020 and has argued that “growth responds to the interaction of supply and demand.” The second is the Port Connectivity Index (ICP), based on the UNCTAD methodology, which analyzes the supply of short-distance maritime services. The conference, moderated by the general director of the Valenciaport Foundation, Antonio Torregrosa, has continued with the participation of the professor of Applied Economics of the University of Valencia, Vicente Pallardó; Professor of Maritime Economics and Logistics at the University of Paris and the Dalian Maritime University, Hercules Haralambides; and the Chief of the Trade Logistics Branch of UNCTAD, Jan Hoffmann. The speakers have valued the importance of these reports for the port community and for exporting / importing companies, which is essential information for them to understand the evolution of the maritime market. During his speech, Professor Vicente Pallardó explained that “recovery funds, such as those from the EU to reactivate the economy after COVID-19, have to serve to change the future. For this reason, those responsible for managing them have to think about projects aimed at structural challenges, sustainable growth and new emerging sectors that generate quality economic activity and employment”. Source: Autoridad Portuaria de València (APV – Valenciaport, Port Authority of Valencia)

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