<p><b>Imports & Exports</b> <br>US Import XSI® Drops Slightly, Spot Rates Increase While Export XSI® Plummets</p>
The XSI® for US imports experienced the smallest month-on-month decline among the XSI® sub-indices, dropping by 1.5% from March to 451.5 points, which is the same level as in January 2023.
The beginning of Q2 is not as significant of a milestone as May 1st for trades into the US. This is because many 12-month contracts are set to expire on that date and newly negotiated contracts will come into effect.
Unlike long-term container rates, spot rates increased in mid-April. Carriers implemented General Rate Increases (GRIs) on both US coasts from the Far East.
This was likely done to exert pressure on shippers who are postponing the signing of new long-term contracts or luring freight forwarders, many of whom have shifted to the spot market, back to long-term agreements.
The XSI® for US exports experienced the biggest decline among all the sub-indices, as opposed to US imports. It dropped by 18.9% to 145.3 points, resulting in the trade having the lowest growth rate compared to January 2017.
It's all in the data…
“The picture is complex and, as with wider market drivers and geopolitical maneuvering, problematic to predict. But it’s difficult to see signs of upswing on the horizon in Q2 as we leave behind a challenging Q1.
XSI for US exports saw the largest month-on-month drop of all the sub-indices, collapsing 18.9%. This is now the trade with the lowest levels of increase since January 2017.
The US Import XSI® saw a slight month-on-month dip of 1.5%. Yet, with new contracts set to take effect on May 1st, this could obscure the long-term contracted reality.
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