As the year 2023 concludes, the Xeneta XSI® reflects the unpredictable nature of ocean freight rates, resembling a game of snakes and ladders. Rates experience fluctuations, creating a dynamic landscape for the shipping industry, according to an article published on the Xeneta website.
Global XSI® Trends
The Global XSI® for December stands at 157.8 points, marking a 62.4% decrease from the beginning of the year. However, when compared to the end of 2020, the index concludes the year at 38.9% higher, emphasizing the volatility throughout the year.
Impact Of Red Sea Missile Attacks
Recent missile attacks in the Red Sea and Gulf of Aden have disrupted shipping routes, prompting carriers to reroute around the Cape of Good Hope instead of using the Suez Canal. This decision introduces the need for significant extra capacity to maintain service schedules.
Regional XSI® Insights
Europe
- European imports of XSI® in December are nearly flat, standing at 176.2, representing a substantial drop from the previous year.
- European exports of XSI® see a marginal increase of 0.1% to 160.5 but remain significantly lower compared to the start of the year.
Far East
- Far East exports XSI® experienced a 1.7% decline in December to 146.3 points, considerably lower than the end of the previous year.
- Far East imports XSI® fall to 104.3 points, down 0.6% from November, reaching levels below those recorded in 2017 and 2018.
US
- US imports of XSI® show a meaningful increase of 2.0% in December, reaching 185.8 points.
- US exports XSI® records a 2.2% drop in December to 128.1 points, the largest month-on-month decrease but with the lowest year-on-year drop across all XSI® indices.
Challenges And Uncertainties Ahead
The crisis in the Red Sea, coupled with the Panama Canal’s low water levels, adds unexpected uncertainty to negotiations for long-term rates starting in January. The industry faces challenges, emphasizing the need for market transparency to navigate swiftly through evolving conditions.
Emphasis On Market Transparency
The Xeneta Shipping Index (XSI®) provides essential insights for understanding and adapting to the dynamic container shipping market. Accessing intelligence and visibility is crucial for adapting swiftly to market shifts and ensuring the success of teams and businesses in this ever-changing environment.
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Source: Xeneta
