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The global XSI® index saw its first month-on-month fall since January 2022 as it slid to 448.3 in September, falling by 1.1%.
This is the first drop since January and one of only three declines in the past 21 months. However, Xeneta expects it won’t be the last, with market fundamentals suggesting that the “halcyon days” of ever-increasing rates for carriers may be drawing to a close.
Read more in the latest Xeneta Shipping Index (XSI®) report.
“It had to happen sooner or later,” comments Xeneta CEO Patrik Berglund. “We’ve seen a steady, and at times spectacular, uptick of long-term contracted rates since the early days of the pandemic.
This has fuelled record-breaking carrier profits, much to the dismay of a financially-stressed shipper community. But, over the past couple of months, clear signs of a market shift have emerged.”
XSI® - US Imports/Exports
The XSI® index for US imports followed the global trend, though it fell slightly less, down by 0.7% month on month to 561.7 points in September. Compared to September 2021, the index is still up by 179.7%. This is despite spot rates on the major trades into the US from the Far East now down from their levels at this time last year.
XSI® - Europe Imports/Exports
The index for European imports fell to 388.5 index points in September, down by 1.7% from August. This slight fall has not been able to affect, in any meaningful way yet, the year-on-year increase shippers are seeing on their long-term contracts, which is still up by 123.7% from September 2021.
XSI - Far East Imports/Exports
In line with the fall in the sub-indices for Europe and US imports, the XSI® subindex for Far East Exports has fallen by 1.2% month-on-month, down to 627.3 points. September is the first month since April that the index is less than twice as high as it was in January 2022 and is now up by 93.6% since the start of the year.
Note: Xeneta's XSI® is compiled from the very 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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