Methodology - Pressure Model

How to read a sirius index reading - and what it means for your freight budget

One number. Four dimensions. Here is what it means and how to act on it.

A sirius reading of 118 means freight costs across your active trade lanes are running 18% above the January 2026 baseline. This article explains what that number means in practice, what drives it, and how to act on it.

Contents
  1. What a reading tells you
  2. Fuel pressure
  3. Capacity pressure
  4. Surcharge pressure
  5. FX pressure
  6. What sirius looked like during recent disruptions
  7. The signal network: chokepoints
4-layer contribution to composite reading - illustrative example
Layer
contributions
~120
Composite
reading
Fuel
Capacity
Surcharge
FX
Values are illustrative. Actual layer contributions vary by lane, modality, and market conditions.
01

What a reading tells you

A sirius reading of 100 represents January 2026 - the baseline period. Every point above or below 100 is a percentage point deviation from that baseline. A reading of 118 means the cost pressure inputs are 18% above that level. A reading of 94 means they are 6% below it.

Four zones help orient the response:

EASING
Below baseline
Review locked-in rates. Renegotiation window is open.
STABLE
Near baseline
Normal variance range. Monitor weekly. No urgent action required.
PRESSURE
Elevated
Review contract renewal timing and modal alternatives. Act before the next invoice cycle.
CRITICAL
Significantly elevated
Activate contingency plans. Crisis-level pressure, typically from active chokepoint disruption.
sample reading
easing
critical
Zone thresholds are for orientation. Actual response depends on your freight cost structure and budget sensitivity.

What a reading of 118 does not mean is also worth stating: it does not mean your freight bill is 18% higher. sirius measures variable cost pressure on the inputs to freight pricing. Your actual freight invoice change depends on your contract structure, the proportion of your freight cost that is variable, and how carrier surcharge mechanisms pass through the pressure. The sirius Pro report includes a P&L impact calculator that translates a reading into a cost delta for your specific spend profile.

02

The four pressure dimensions

Fuel pressure

When crude oil moves significantly and carrier fuel surcharge schedules have not yet adjusted, fuel pressure leads the index. sirius has consistently flagged fuel pressure elevation ahead of carrier FSC announcements - the fuel layer registers the market move before it appears in quoted rates. Pro subscribers receive the current week's signal every Friday.

Fuel pressure is the most responsive of the four dimensions to sudden market events. A geopolitical shock that disrupts oil supply typically surfaces in the fuel layer within 1-2 weeks. For shippers watching sirius, a fuel pressure spike is the earliest signal to check contract renewal timing and reassess modal mix assumptions.

Capacity pressure

Blank sailing programs reduce effective vessel capacity before rate announcements follow. sirius correlates booking lead-time signals and vessel scheduling data to detect capacity tightening before rates move. During chokepoint events, sirius captures the divergence between capacity and fuel pressure signals - the sequencing of these layers provides an early detection signal ahead of carrier rate announcements.

Capacity pressure typically builds and resolves more slowly than fuel pressure. Utilization spikes driven by blank sailing programs can persist well beyond the program itself - the duration varies by lane and carrier response. For procurement, a rising capacity dimension is the signal to act on contract renewal well ahead of the announcement window.

Surcharge pressure

BAF, EBS, and emergency surcharges compound on top of base rates. sirius tracks surcharge schedules across major carriers to model the real cost per TEU - not the quoted base rate. When a carrier declares a Peak Season Surcharge, the surcharge dimension registers the movement within the same week, before it appears in your invoices 30-90 days later.

Surcharge pressure is the most event-driven of the four dimensions. It can spike sharply when carriers declare emergency surcharges and resolve quickly if withdrawn. A rising surcharge dimension with stable capacity and fuel usually signals a tactical carrier pricing move rather than a structural market shift - useful context for contract negotiations.

05

FX pressure

For shippers with USD-denominated contracts paying in EUR, MYR, or IDR, a 5% FX move can offset a 3% rate reduction entirely. sirius models the net impact per lane and currency pair. When USD strengthens significantly, FX pressure can contribute materially to the composite reading even if spot freight rates appear flat.

FX pressure tends to be a secondary amplifier rather than a primary driver in most market conditions. But it is consistently underestimated because it is invisible until the Currency Adjustment Factor resets on the next billing cycle. sirius surfaces the FX dimension weekly, giving finance teams the signal before the CAF adjustment arrives in AP.

CAF vs FX pressure: The FX dimension in sirius is not the same as the Currency Adjustment Factor on your carrier invoice. The CAF is a specific billing mechanism with its own update cycle. The FX dimension measures the underlying market pressure that eventually flows through the CAF - the two move in the same direction but with different timing.
06

What sirius looked like during recent disruptions

When sirius detects elevated pressure on a trade lane, the reading tells you which dimension is driving it and how the pattern compares to historical precedents. The examples below are illustrative - they reflect the structural shape of how the four dimensions behaved, not precise reconstructed readings.

FE_EU lane
142
CRITICAL
Red Sea rerouting (Jan 2024)
FE_EU reached 142. Capacity pressure was the dominant driver - not fuel. Vessels rerouting via Cape of Good Hope added 14 days of transit time, compressing effective vessel availability on the lane before any fuel or surcharge movement registered.
(Illustrative example - not a forecast)
ME_FE lane
131
CRITICAL
Hormuz partial restriction (May 2026)
ME_FE reached 131. First detected as capacity pressure before fuel transmission registered. Chokepoint throughput reduction impacted vessel scheduling on the corridor within the first reporting week - fuel pressure followed as oil price uncertainty built over the subsequent two weeks.
(Illustrative example - not a forecast)
Multi-lane
147 → 112
14 weeks
Post-COVID normalization (Q3 2022)
Index declined from 147 to 112 over 14 weeks - the asymmetric recovery pattern. Fuel pressure eased first, followed by capacity (as blank sailings were withdrawn), with surcharge pressure the last to normalize as carriers held emergency surcharges through the transition period.
(Illustrative example - not a forecast)
07

The signal network: chokepoints and straits sirius monitors

Chokepoint throughput is a primary input to the capacity pressure layer. Four strategic straits account for a significant share of global maritime trade. sirius monitors vessel throughput at each chokepoint using vessel movement data from multiple sources, and applies a capacity adjustment when conditions deviate from historical norms.

Natural Earth · TopoJSON
Strait of Hormuz
The single most critical oil export channel, linking Gulf producers to global markets. Approximately 17 million barrels per day transit this strait in normal conditions.
sirius monitors this strait because a throughput reduction directly drives the capacity pressure layer on Middle East and Far East lanes, and amplifies the fuel pressure layer via oil price effects.
DEGRADED
Suez Canal
The primary shortcut between Asia and Europe, handling approximately 12% of global trade by value. Disruption forces vessels onto the Cape of Good Hope route, adding 7-14 days of transit time.
sirius monitors this canal because diversions add direct capacity pressure on Far East to Europe and Far East to North America lanes through vessel availability constraints and schedule unreliability.
NORMAL
Strait of Malacca
The primary gateway between the Indian Ocean and the Pacific, through which approximately 80,000 vessels transit annually, carrying roughly a third of global trade.
sirius monitors this strait because any throughput reduction creates immediate ripple effects on Intra-Asia, Far East, and Middle East to Far East lanes.
NORMAL
Panama Canal
The primary transit route between the Pacific and Atlantic, handling approximately 6% of global trade. Water level constraints have caused transit restrictions in prior drought years.
sirius monitors this canal because transit restrictions shift Far East to North America cargo to the Cape Horn route or to transpacific/rail combinations, affecting capacity pressure on multiple lanes simultaneously.
WATCH
Chokepoint status reflects the most recent sirius signal capture. Historical baselines from PortWatch/IMF and AIS vessel tracking data. Status indicators are illustrative of the monitoring framework - refer to the current sirius report for live readings.

See the current 4-layer breakdown

The free report shows the composite reading and top-3 lanes. sirius Pro includes the full layer decomposition, per-lane weights, and P&L calculator.

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