According to the latest market analysis, after experiencing a long-term downward trend, due to the interruption of the Suez Canal route, container freight rates for India’s main trade have begun to rise.In the westward trade between India and Europe, the average short-term contract rate from West India [JNPT/Navasheva or Mondra] to Felixstowe/London Gate (UK) or Rotterdam (Netherlands) has increased from $450 per 20 foot container and $550 per 40 foot container to $600 per 20 foot container and $650 per 40 foot container.CN’s analysis shows that for the pre order quantity of West India Genoa (Western Mediterranean), the contract price in December increased from $425/TEU to $750/TEU, and from $550/FEU to $700/FEU.Suez Canal RouteSimilarly, the rates for eastbound goods (imported to India) from the Felixstowe/London portal to West India have significantly increased from the average level at the end of November, rising from $650 and $700 respectively to $800/TEU and $950/FEU, while goods from Rotterdam to West India have risen from $750 and $850 respectively to $850/TEU and $1050/FEU.The trade rate from the Western Mediterranean (Genoa) to West India increased from $450/TEU to $500/TEU in December, with the FEU rate remaining stable at $650/FEU.The short-term contract prices of India US trade have also significantly increased from the level at the end of November. In December, the average shipping cost from West India (Nhava Sheva/Mundra) to the East Coast of the United States (New York) increased from $1350/TEU to $1500/TEU, and from $1550/FEU in November to $1900/FEU. According to last month’s report, the shipping cost of Indian container goods to the West Coast of the United States (Los Angeles) has increased from $1250/TEU and $1550/FEU to $1600/TEU and $1900/FEU, respectively.According to CN’s analysis, for trade between West India and the US Gulf Coast (Houston), TEU rates have further rebounded month by month, rising from $1850/TEU to $1950/TEU, and from $2350/FEU to $2450/FEU.Except for goods from the West Coast of the United States, the short-term contract interest rates for US India trade (return) have remained relatively stable. In December, the average shipping cost from the East Coast of the United States to West India was $375/TEU and $450/TEU, respectively. The average shipping cost from the West Coast of the United States to West India was $1100/TEU and $1300/TEU, respectively, higher than the $950/TEU and $1100/TEU from the East Coast of the United States to West India.In December, the average freight rate from the Gulf Coast of the United States to West India remained unchanged, hovering between $700/TEU and $1350/FEU.CN’s analysis found that carrier contract rates for intra Asian trade departing from India have shown significant month on month growth in certain port pairs. For West India Yantian (southern China), the average rates analyzed are $100/TEU and $200/FEU, respectively, higher than $75 and $150. However, for West India Tianjin (northern China), the rates are on the rise, with carrier quotes of $50/TEU and $100/FEU, respectively, compared to $35 and $75 last month.For the West India Shanghai (Central China) route, the freight rates in December continued to be negative, at $5/TEU and $10/FEU, respectively.In addition, for cargo from West India to Singapore and Hong Kong, airlines accept booking prices as low as $5/TEU and $10/FEU.However, the carrier has been able to increase the freight rates on the West India Jebel Ali (Dubai) route, with an average freight rate of $50/TEU and $140/FEU in December, higher than $5/TEU and $15/FEU, respectively.Meanwhile, after seeing some encouraging signs of demand in recent months, stakeholders in the Indian export industry expect that India will face new growth challenges due to supply chain disruptions and rising logistics costs.According to the latest government data, India’s commodity export trade volume in October decreased slightly by 2.8% year-on-year, slightly lower than the sharp decline earlier this month.”The softening of commodity prices from their high levels in 2022 has also led to a decline,” said A Sakthivel, Chairman of the Federation of Indian Export Organizations (FIEO), in a statementHowever, Sakthivel further pointed out, “Almost all countries’ exports have shown a downward trend, with many countries experiencing double-digit declines in exports.”FIEO stated, “The current need is to provide urgently needed impetus to the export sector through easy and low-cost credit, as well as marketing support beyond interest balancing to all export sectors.”Sakthivel added, “In consultation with the main stakeholders of trade, a strategy should be developed to promote all labor-intensive export sectors.”However, he expressed optimism about the export prospects and pointed out that the annual export volume for the 2023-24 fiscal year will exceed last year’s (2022-23)
