Chart of the Week: Inbound Ocean TEUs Volume Index – USA SONAR: IOTI.USA
The Inbound Ocean TEUs Volume Index (IOTI) measures bookings or shipping orders for twenty-foot equivalent units by estimated time of departure from the ports of origin on a daily basis. This index is a leading indicator of domestic shipping and warehousing activity. Over the past four months, the index’s high and low ranges have become much wider as importers struggle to navigate supply chain delays and ensure inventory will be available for future demand.
The IOTI is an index with a base value of 100 set to a start date of Jan. 1, 2019. The Dec. 17 value of 180 indicates that there were 80% more TEUs of freight being ordered to ship across the ocean into the U.S. on that date versus New Year’s Day of 2019.
Keep in mind that this is actually a busy time for international shipping as China and many other Asian countries do not celebrate the new year until several weeks later. The 80% increase is not in comparison to a holiday or period of subdued activity. The traditional low point of booking activity occurs around the Lunar New Year, which typically occurs in late January or early February.
To put this in perspective, the index fluctuated between a value of 70 and 130 throughout all of 2019. Since Aug. 30, the IOTI has hit a high of 230 and a low of 149. Just looking at a straight range is not a full explanation of how volatile ordering activity has become for…
