The global shipping industry faces another month of declining rates, with the Xeneta Shipping Index (XSI) showing a downward trend. June marks the tenth consecutive month of declines, with the global XSI® dropping by 9.4%.
Declining Global XSI®
The global XSI® reached a 23-month low in June, falling by 21 index points and losing over half its value since December 2022. Far East exports and European exports have experienced significant declines since December, while select trade lanes have shown positive growth.
European Imports
The XSI®for European imports hit a two-year low in June, falling by 9.4%. The Taiwan to Mediterranean trade corridor saw the steepest decline, down by 65.5% since December 2022. China to North Europe and Indian West Coast & Pakistan recorded declines of over 70%.
Far East Exports
The XSI® for Far East exports fell by 13.9% in May, reaching its lowest point since May 2021. Far East imports experienced a more muted decline of 6.7% in June. The corridor from South America East Coast to China showed a slight recovery with an 11% increase.
US Imports
The US imports sub-index fell by 11% in June, reaching an 18-month low. Long-term contract rates for US imports dropped across all corridors. For the year-to-date, the XSI® for US imports is down by 56.3%.
US Exports
The XSI® for US exports dropped by 4.3% in June, mainly driven by declines in US East Coast exports to North Europe and the Mediterranean. However, comparing the first four months of 2023 to 2022, US container exports were up by 1.8%, with the US East Coast driving the growth.
The global shipping industry continues to face declining rates due to weak demand. Far East exports, European imports, and US imports have been significantly impacted. While select trade lanes show positive growth, the industry's road to recovery remains uncertain. Adapting strategies to navigate these challenging market conditions is crucial for industry stakeholders.
Get the full XSI® report here.
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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