XSI® US
The XSI® for US imports plummeted to 192.4 points, its lowest since June 2021, yet remains the highest sub-index.
The XSI® for US imports is now down 65.7% year-on-year, to 192.4 points, its lowest mark since June 2021. This was a 2.3% month-on-month drop. Despite this dramatic drop this is still the sub-index with the highest reading – having fallen slower than the Far East export XSI®, which had climbed to a higher level.
While long-term rates are still falling, spot rates have responded to both carriers removing capacity and a pick-up in demand. The latest available data shows that volumes from the Far East to the US West Coast rose above 900 000 TEU for the first time this year in July. However, this is still 8.5% lower than in July 2022, and in the first seven months of 2023 total volumes on this trade are down 19.0% year-on-year. Increasing spot rates suggest long-term rates will soon follow suit. With this in mind, shippers who can should consider whether now is an expedient time to secure new long-term contracts.
The XSI for US exports also fell in September, down by 0.9% to 133.2 points. Despite this latest fall, this sub-index has the honor of being the XSI® with the lowest year-on-year decrease, down ‘just’ 11.9% (compared to the 62.2% global drop). However, this primarily reflects the fact that US exports never rose to the level of the bigger trades. The average for all valid long-term rates ‘only’ peaked 80.8% higher than their January 2017 level. Long-term rates on all other trades were at least twice as high, with some up to five times previous levels.
