The global XSI® continued its downward trend in February at a slower pace after its biggest-ever month-on-month drop recorded in January. According to the latest data from the Xeneta Shipping Index (XSI®), average long-term contracted rates dropped by 1% across the month, down to 354.2 points. This is now the sixth consecutive month of falls, with the index losing 22% of its value since August 2022. As TPM is in full swing this week, many eyes are looking to see the outcome of several contract negotiations happening onsite.
There are some sizable contract rate declines in the world’s leading corridors. So, it remains a very challenging situation for carriers fighting to secure cargo, and that should continue to impact rates going forward. It’ll be interesting to see what happens at TPM this week, which will operate as a focal point for new contract negotiations.
XSI® - US Imports/Exports
The XSI® for US imports fell by 3.9% from January, down to 433.98 points. Following the fastest m-o-m decline of this sub-index on record in January, the pace of the decline has eased. The XSI® for US exports is special for February as it just hit an all-time high level, rising by 16.5% to 179 points.
XSI® - Europe Imports/Exports
The XSI® for European imports rose to 356.4 points in February, down 91.5 since the August peak. Compared to February last year, the XSI® remains elevated by 31.6%. The XSI® for European exports fell by 2.6%, down to 348.35 points, leaving the index up by 65.3% from February 2022.
XSI - Far East Imports/Exports
The XSI® for imports into the Far East fell by 4.4% in February from the month before. The index currently only sits 13.6% above February 2022. Since the peak in August, the XSI® for exports out of the Far East has fallen consistently. Recently, it fell by 4.6% in February from the earlier month, but compared to the pre-pandemic month of January 2020, it is up by 244.5%.
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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