Credits: nVision Global
Container freight rates for trades out of India have experienced significant increases in July, driven by heightened demand associated with early peak season bookings and ongoing capacity disruptions, according to a market analysis by CN.
Reports have claimed that on the westbound India-Europe trade routes, short-term contract rates for shipments from West India (Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port) to major European ports have surged. Average rates for bookings to Felixstowe/London Gateway (UK) or Rotterdam have risen to US$4,200 per 20-foot container and US$4,500 per 40-foot container, up from US$3,100 and US$3,200, respectively, at the end of June. Similarly, rates for West India-Genoa (West Mediterranean) bookings have climbed to US$4,400 per TEU and US$4,600 per FEU, compared to US$3,300 and US$3,400, respectively, the previous month.
In contrast, eastbound cargo rates (imports into India) have shown mixed trends. Rates for bookings from Felixstowe/London Gateway to West India have remained relatively stable at US$1,300 per TEU and US$1,450 per FEU. However, Rotterdam-West India rates have increased to US$1,300 per TEU and US$1,450 per FEU, from US$950 and US$1,400, respectively, reported at the end of June. For trades from the West Mediterranean (Genoa) to West India, July rates have increased to US$950 per TEU, up from US$800, while FEU rates have decreased to US$750 from US$1,400.
The most dramatic rate increases have been observed on the India-US trades. Rates for shipments from West India (Nhava Sheva/Mundra) to the US East Coast (New York) have skyrocketed to US$9,500 per TEU and US$10,500 per FEU, up from US$2,000 and US$2,300 in June. For shipments to the US West Coast (Los Angeles), rates have surged to US$10,600 per TEU and US$12,000 per FEU, compared to US$2,650 and US$3,000 previously. Similarly, rates for West India-US Gulf Coast (Houston) trades have reached US$10,000 per TEU or FEU, up from US$3,500 a month ago.
On the return leg from the US to West India, rates have remained relatively stable. Average rates for US East Coast-West India trades are steady at US$550 per TEU and US$750 per FEU. From the US West Coast to West India, rates have been reported at US$1,950 per TEU and US$2,500 per FEU, while rates from the US Gulf Coast to West India have held steady at US$1,300 per TEU and US$2,050 per FEU.
Intra-Asia trades from India have seen continued negative territory for most port pairings. For West India-Yantian (South China), average rates are as low as US$25 per TEU and US$35 per FEU, while bookings to Tianjin (North China) are being accepted at US$5 per TEU and US$10 per FEU. Rates for West India-Shanghai (Central China) and to Singapore are similarly low, at around US$5 per TEU or FEU. Conversely, rates for West India-Jebel Ali (Dubai) have strengthened considerably to US$700 per TEU and US$1,400 per FEU, from US$250 and US$300, respectively.
Despite these fluctuations in freight rates, India’s merchandise export trade has shown a positive trend in the new fiscal year 2024-25, which began in April. Provisional government data indicates that total goods exports by value increased by 2.5% year-over-year, reaching US$35 billion.