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As March drew to a close, the global XSI® maintained its downward trajectory, albeit at a less frenzied pace than in recent times, edging down by a mere 0.5% from February to reach 345.87 points. This represents a staggering 24% drop from its pinnacle in August 2022.
According to the Xeneta Shipping Index (XSI®), the latest plunge is the least drastic of the year so far, with February having fallen by 1% and January plummeting by a whopping 13.3% on a month-on-month basis.
But don't be misled by this modest downturn, for the reason behind it is simply due to a lack of new contracts entering validity.
Xeneta's Chief Executive, Patrik Berglund, cautions that as soon as negotiations for new contracts for the US heat up in April and May, we'll see a significant slide in XSI®, signaling turbulent times ahead.
XSI® - US Imports/Exports
The XSI® sub-index for US imports posted a 7.1% month-on-month increase, making up for the two previous months of decline. In March, this index stood at 458.37 points. The XSI® for US exports is flat from February at 179.12 points. This is the lowest reading among the sub-index, i.e., the trade that has grown the least compared to the starting point in January 2017.
XSI® - Europe Imports/Exports
The sub-index for European imports fell by 6.0% between February and March, landing at 324.13 points. This is the lowest level for the European imports index since March last year, but compared to then represents an 18.0% increase. Unlike European imports, the index for European exports grew in March, although only marginally. The index for European exports is up by 0.8% to 351.57 points.
XSI - Far East Imports/Exports
The index for Far East imports fell by 188.77 points in March, down by 1.5% from February. Compared to a year ago, it is up by 7% and one of the few trades which hasn’t doubled from March 2020 (+85%). The XSI® for Far East exports registered its eighth month-on-month decline in a row. It fell to 407.17 points, down by 1.6% from February and its lowest level since April last year.
Note: Xeneta's XSI® is compiled from the latest crowd-sourced ocean freight rate data aggregated worldwide. Companies participating in the benchmarking and market analytics platform include names such as ABB, Electrolux, Continental, Unilever, Nestle, L'Oréal, Thyssenkrupp, Volvo Group and John Deere, amongst others.
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