XSI® Europe
The XSI® for European imports was close to flat in December
The XSI® for European imports was close to flat in December, falling by less than one index point from November to 176.2.
This leaves the index at less than half the level it was in December last year when it stood at 390.7 points.
The European exports XSI® was also all but flat in December, up by 0.1% to 160.5, leaving this sub-index 58.1% lower than at the start of the year.
European imports are heavily exposed to trades that typically sail through the Suez Canal and are first in line when freight rates are impacted.
Already we have seen spot rates increase, and with the curveballs of the crisis in the Red Sea and drought in the Panama Canal, there could be some unexpected uncertainty added to the mix during final stage of negotiations for long term rates starting in January.
Given the uncertainty over the timeline for a resolution in the Red Sea, the full impact on rates is still unclear.
While they will certainly increase from their current level, there is still a long way to go if they are to increase to the level of annual long term rates signed in January 2023.
This will increase the likelihood of the XSI® continuing to fall in the new year.
