The global XSI® fell by 0.6% in October compared to last month, marking the second month in a row that the index has fallen. However, the 445.7 points reading for the index in October is still higher than in July despite the collapse in spot rates that we have seen on significant trades over the same time frame.
Read more in the latest Xeneta Shipping Index (XSI®) report.
“Eyebrows will be raised amongst industry observers this month,” notes Xeneta CEO Patrik Berglund.
“Spot rates have plummeted since the summer across key trading corridors, such as the Far East to US West Coast, and long-term rates usually play catch up after a few months. In addition, you have zero sign of peak volumes hitting the waves, as many shippers already have high inventories and are anticipating lower seasonal demand due to the challenging macroeconomic picture. Added to weaker consumer confidence, you also have higher fleet capacity. So, in this context, a mere 0.6% fall looks almost like a ‘win’ for the carriers.”
XSI® - US Imports/Exports
The US import XSI® stands out from the global and European import indexes as it registered a 5.2% increase in October, rising to 590.9 points, setting a new record high. This is in contrast to huge falls in the spot market, which is closing in on pre-pandemic levels - especially on the transpacific trades.
XSI® - Europe Imports/Exports
The XSI® sub-index for European imports saw a much larger decline than the main global index, falling by 8.3% to 410.5 points in October, its largest recorded month-on-month drop. However, it still leaves the index up by 63.7% compared to January 2022.
XSI - Far East Imports/Exports
The XSI® for exports out of the Far East fell to 613.7 points in October, down 2.2% from September and down, though still up by 89.4% since the start of the year. With the major trades out of the Far East pulling in different directions, this 2.2% fall is driven by exports to Europe and other regions, excluding the US.
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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