Fluctuations in container freight rates of Indian exports
By ashish wagh 2024-06-05 15:22:37
Variations in Indian exporters' container freight charges
On the India-Europe Western route, rates to the UK for 40-foot containers declined, while rates for 20-foot containers remained at the former level. Similarly, rates to Rotterdam remained stable for 20-foot containers but decreased for 40-foot containers. Bookings from West India to Genoa also saw rates decline.
At the same time, import rates to India from Europe and the Mediterranean also declined. Rates from Felixstowe/London Gateway and Rotterdam to West India declined significantly, as did rates from Genoa to West India.
The India-US trade route also saw significant rate adjustments. Rates from West India to the US East Coast and West Coast declined from their previous highs, but a slight increase was seen for the latter. Rates from the US Gulf Coast to West India decreased.
On the return journey from the US to India, short-term contract rates showed a cooling trend for East Coast but remained stable for West Coast and Gulf Coast to West India shipments.
Intra-Asia trades originating from India continued to face challenges, particularly negative rates on some routes to China and Singapore, although shipments to Jebel Ali saw marginal improvement.
Despite these freight rate challenges, India’s export sector has shown a mild increase in exports by value at the start of FY 2024-25. The Federation of Indian Export Organisations (FIEO) underlined the impact of global geopolitical tensions on trade but remained optimistic about future growth on potential opportunities arising from the US-China tariff war and the need for supportive measures for the export sector.
