Container freight rates on trades out of India have begun to cool after the Red Sea crisis-driven rocketing, according to the latest market analysis by Container News.
Short term contract rates
On the westbound India-Europe trade, average short-term contract rates for 20-foot container bookings from West India [Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port] to Felixstowe/London Gateway (UK) have dropped to US$2,750 per 20-foot container and US$3,100 per 40-foot container, down from US$3,600 and US$3,900, respectively, at the end of February.
Similarly, eastbound cargo (imports into India) rates for these port pairings have softened from end-February averages, to US$1,800/TEU and US$2,100/FEU, from US$2,550 and US$2,800, respectively, for bookings from Felixstowe/London Gateway to West India, while for shipments from Rotterdam to West India, rates have slumped to US$1,150/TEU and US$1,700/FEU, from US$2,550 and US$2,800/FEU, respectively.
For trades from the West Mediterranean (Genoa) to West India, the analysis put March rates at US$1,100/TEU, up from US$1,050, and US$1,300/FEU, down from US$1,700/FEU.
For the West India-US Gulf Coast (Houston) trades, rates have slid to US$4,000/TEU and US$4,400/FEU, from US$4,500 and US$5,000, respectively, according to the CN analysis.
Short term contract rates
Short-term contract rates on the US-India trades (return leg) have remained relatively steady month-on-month, with USEC-West India pricing reported at US$550/TEU and US$800/FEU. However, for US West Coast-West India bookings, rates have climbed to US$1,150/TEU and US$1,400/FEU, from US$925 and US$1,250.
Carrier contract rates on intra-Asia trades out of India have hit new lows, found the CN analysis. For West India-Yantian (South China), the analysis has put average rates at US$25/TEU and US$40/FEU, down from US$65 and US$50, respectively, while for West India-Tianjin (North China), carriers have revised quotes to as low as US$10/TEU and US$25/FEU, from US$15 and US$30, respectively, last month.
Meanwhile, Indian merchandise exports by value hit a new monthly high in February year-over-year, presenting hopeful signs for industry stakeholders amid supply chain concerns linked to the Red Sea crisis. According to provisional data, exports rose 12% to US$41.4 billion.
According to FIEO, the need of the hour is to address the Red Sea crisis challenges by ensuring availability of marine insurance, regular supply of containers, and rational increase in freight charges.
The association said: “The sector also needs easy and low cost of credit, marketing support, besides conclusion of some of the key free trade agreements with the UK, Oman and EU soon.”
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Source : Containernews
