Traders who move secondary commodities via ocean freight paid even more on average in November than the preceding month, according to a company that maintains a global pricing index.
The Xeneta Shipping Index (XSI), maintained by Oslo, Norway-based Xeneta AS, concludes container shipping pricing “has continued its meteoric rise, increasing by a further 16.3 percent in November.” That “represents the largest month-on-month jump since July and takes the [XSI] benchmark to 121.2 percent higher than the equivalent period of 2020 and the end of last year,” writes Xeneta.
In an eight-page report summarizing its November index findings, Xeneta comments that shipping companies continue to report record or near-record earnings, as they have been throughout the year.
“The extraordinary rise in rates across the major trades has been reflected in the most recent financials of carriers,” writes Xeneta, pointing to results posted by France-based CMA CGM, which Xeneta says posted “a net profit of $5.6 billion” in this year’s third quarter. “Its container business reported a doubling in [sales proceeds] for the period,” Xeneta adds.
While shipping rates outbound from Asia attract the most attention in the consumer products sector, Xeneta says in November, “Far East imports on the XSI grew by 14.6 percent. This is the second-largest increase on record and has ensured the index is 65.5 percent higher than the same period last year. The benchmark is also up by 66.2 percent compared to the end of 2020.”
A copy of the full Xeneta report can be downloaded from this web page.