XSI® Global
The global XSI fell by 9.5% from June, landing at 183.6 points in July. Compared to a year ago, the global XSI has now fallen by 57.8%, down from 435.2 points.
Ocean freight rates continue sliding - little respite ahead as overcapacity is sailing over the horizon
On all but three of the XSI sub-indices, the averages of all valid long-term rates have dropped by more than 50% compared to a year ago, meaning the average shipper on these trades should be paying less than half the rates they were a year ago on the long-term market.
Despite an increase in volumes from previous months, global container demand remains down year on year. Carriers waiting for higher volumes in July, and in the coming months due to peak season, look increasingly likely to be disappointed.
Even if volumes do increase, overcapacity will be inevitable as record numbers of new ships are delivered. June saw the highest ever monthly deliveries of new ships, with just over 300 000 TEU of capacity from a total of 40 new vessels added to the market. In the first six months of the year, a total of 990 000 TEU was delivered, with around the same to come in the second half of 2023.
