Xeneta Shipping Index long-term contracts update in January
THE Xeneta Shipping Index (XSI) fell 1
THE Xeneta Shipping Index (XSI) fell 1.6 per cent in January to 106.58 points, continuing its downward trend since August, said Xeneta, the Oslo-based maritime market research company,
During this six-month period, the index has lost 5.3 per cent of its value, having shed 5.92 points and now stands at a similar level to that recorded in May 2017.
Year-on-year the global benchmark is 2.1 per cent lower than on January 2018. However, if the index reports similar changes to those witnessed during the first few months of 2018, when only minimal changes were noted.
This January, European imports on the XSI fell 1.3 per cent month-to-month to 108.01. However, compared to the same period a year earlier, it remains three per cent higher.
The decline on the imports benchmark occurred despite a noticeable increase in the spot market following planned FAK increases, suggesting the latest increase has had little impact on contracted rates.
Meanwhile, exports on the benchmark declined 2.3 per cent to 107.73 points and the index now stands at its lowest level since June 17, having failed to maintain any positive momentum. As a result, the index is also now 1.9 per cent lower year on year.
Looking ahead, with new IMO regulations on the horizon, the market should expect a higher level of demolition activity in coming months, as less fuel-efficient vessels are scrapped.
Shippers should therefore be wary of how this could impact supply and thereby affect both short and long-term rates in the near future.
Far East imports jumped 2.3 per cent in January to 115.98 temporarily reversing a downward trend seen since September.
But despite the increase the XSI remains 11.7 per cent lower year on year. Month-to-month declines have been consistent with declines in 16 of the last 24 months.
Far East exports declined 0.3 per cent in January to 115.85 points. Despite the fall, it remains one per cent higher year on year, although is 5.6 per cent lower than the high of 122.78 points recorded in July.
The main Far East-North Europe trade could face additional pressures after it was announced the Ocean Alliance would revamp its Asia-North Europe route, adding a seventh loop in the process.
The alliance seems to have had its hand forced due to Cosco's delivery of a dozen ULCVs due to come online in the first six months of the year.
The XSI for US imports declined 1.7 per cent in January to 98.86 points and is now one per cent lower year on year.
Meanwhile, the US exports fell one per cent month to month in January to 86.64 points. The benchmark has remained on a downward trajectory since its inception and is eight per cent lower year on year.
Xeneta's data is comprised of over 85 million contracted container rates and covers over 160,000 global trade routes.