XSI® US
The XSI® for US imports fell by 2.0% in January, leaving it at 182.1 points.
The XSI® for US imports fell by 2.0% in January, leaving it at 182.1 points. This is the lowest it has been since June 2021 and 54.4% lower than in January 2023.
US exports fell by a similar 2.4%, leaving its XSI at 125.1 points. Compared to other XSI® indices, US exports posted a relatively small 18.6% drop from a year ago.
While less directly impacted, US shippers are still feeling the ripple effects of the Red Sea crisis
For example, services between the Far East and US East Coast are facing a double-whammy of diversions away from the Suez Canal and restrictions in the Panama Canal.
Spot rates from Far East to US East Coast has subsequently increased by 118% since early December 2023.
Despite sailings from the Far East to US West Coast not requiring either the Suez or Panama canal, spot rates have still increased by 132% since early December.
One reason for this may be found in carriers removing capacity from the Transpacific trade to service more lucrative trades affected by the Red Sea crisis from the Far East to Europe and US East Coast.
This is the opposite of 2020/2021 when delays and congestion on the US West Coast drove rates in the rest of the world upwards.
This is some good news, with rainfall in the Panama Canal meaning daily transits have not decreased further to just 20 in January, as had been announced in October.
Instead, transits have increased from 22 in December to 24 in January.
Despite this silver lining in an otherwise hugely challenging market, US shippers cannot expect to be insulated from rate increases across the world’s major trades.
TPM, taking place in March, is where many US tenders are launched and it will certainly be another interesting one to watch this year.
