Container freight rates on trades originating from India have shown varied trends in August, with increases on certain routes like India-Europe, while rates to the US and intra-Asia have generally declined. This analysis, provided by Container News, highlights the ongoing volatility in the shipping industry, which is influenced by global supply chain disruptions and geopolitical factors.
India-Europe Rates Climb
On the westbound India-Europe trade, spot rates for shipments from West India to key European ports like Felixstowe and Rotterdam have risen significantly, reaching up to $5,000 per 40-foot container. This increase contrasts with declines seen in other major trade lanes and underscores the regional variations in freight costs.
US Routes See Decline
In contrast, spot rates for Indian exports to the US have softened. For instance, shipments from West India to the US East Coast have dropped to $8,000 per 20-foot container from previous highs in July. The West India-US West Coast route has seen even steeper declines, with rates falling by nearly 50% for some container sizes.
Intra-Asia Rates Remain Low
Freight rates on intra-Asia routes out of India continue to be in negative territory, particularly for trades with China and Singapore, where carriers are accepting bookings at minimal rates, sometimes as low as $5 per container. This reflects the oversupply of capacity and weak demand in these routes.
Despite the fluctuations in freight rates, India’s merchandise export trade faced a slight dip in July, attributed to ongoing supply chain challenges and logistical disruptions. The Federation of Indian Export Organisations (FIEO) remains hopeful for recovery in the coming months, emphasizing the need for governmental support in addressing these issues and boosting export growth.
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Source: Container News
