Xeneta Shipping Index drops for 1st time MoM since Jan 2022
Halcyon days of ever-increasing rates for carriers may be drawing to a close: Xeneta
The global Xeneta Shipping Index (XSI) recorded its first month-on-month fall since January 2022 as it slipped to 448.3 in September, a drop of 1.1 percent.
"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," says the latest update from Xeneta.
"It had to happen sooner or later," says Patrik Berglund, CEO, Xeneta. "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 - U.S. Imports/Exports
The XSI index for U.S. imports followed the global trend, though it fell slightly less, down by 0.7 percent MoM to 561.7 points in September. Compared to September 2021, the index is still up nearly 180 percent. "This is despite spot rates on the major trades into the U.S. 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 1.7 percent 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 percent from September 2021."
XSI - Far East Imports/Exports
In line with the fall in the sub-indices for Europe and U.S. imports, the XSI for Far East exports has fallen 1.2 percent MoM. "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 93.6 percent since the start of the year."