CN analysis shows that container freight rates from India are starting to fall after rising sharply in July 2024
2 months ago
CN analysis shows that container freight rates from India are starting to fall after rising sharply in July 2024
According to Container News, container freight rates from India generally moderated in August, except for routes to Europe.
On the westbound India-Europe route, average spot rates increased, with rates from West India ports like Jawaharlal Nehru Port (JNPT) and Mundra Port to Felixstowe/London Gateway and Rotterdam rising to $4,800 per 20-foot container and $5,000 per 40-foot container, up from $4,200 and $4,500, respectively, at the end of July. For bookings to Genoa in the West Mediterranean, rates for 20-foot containers have risen to $4,800, from $4,200, while 40-foot container rates have remained steady at $4,600.
In contrast, rates for eastbound cargo (imports into India) have declined. Spot rates from Felixstowe/London Gateway or Rotterdam to West India have dropped to $1,100 per TEU and $1,350 per FEU, down from $1,300 and $1,450, respectively, at the end of July. Rates from Genoa to West India have remained unchanged at $950 per TEU and $800 per FEU.
Freight rates for India-US East Coast trades have softened significantly in August after peaking in July. Rates from West India to New York have decreased to $8,000 per TEU and $9,000 per FEU, down from $9,500 and $10,500. Rates to Los Angeles have also dropped sharply to $6,000 per TEU and $7,000 per FEU, from $10,500 and $12,000. For the US Gulf Coast trades, average August rates have fallen to $8,000 per TEU and $8,500 per FEU, from $10,000.
On the return leg from the US East Coast to West India, rates have remained relatively stable, at $550 per TEU and $750 per FEU. However, rates from the US West Coast to West India have increased, with 20-foot container rates at $1,950 and 40-foot container rates rising to $3,300 from $2,500.
Rates from the US Gulf Coast to West India have seen a modest decrease, with average rates now at $1,200 per TEU and $1,950 per FEU, down from $1,300 and $2,050.
Intra-Asia trades from India have continued to see very low rates, with West India-Yantian rates at $30 per TEU and $40 per FEU, and West India-Tianjin rates as low as $5 per TEU and $10 per FEU. Rates to Shanghai and Singapore are similarly low, around $5 per TEU or FEU.
Rates for West India-Jebel Ali bookings have also softened slightly, with rates at $625 per TEU and $1,200 per FEU, down from $675 and $1,375, respectively.
India’s merchandise exports saw a 1% decline in July, following several months of gains. The Federation of Indian Export Organisations (FIEO) attributed this drop to ongoing supply chain issues, including container shortages and disruptions in shipping schedules. FIEO President Ashwani Kumar highlighted the impact of rising international freight rates and logistical challenges on export profitability.
Kumar expressed optimism about future growth with expected improvements in demand from the EU, the UK, West Asia, and the US, as well as a return to normalcy in trade with Bangladesh. He also urged for enhanced liquidity support, interest subvention, and the conclusion of key free trade agreements to support export growth.
Source: ContainerNews