December 31, 2024 | Source: Logistics Baba
Analysis by CN indicates that Indian outbound container freight rates for November continued to weaken, driven by challenges in export demand growth.
Declining Freight Rates in Key Trades
On the India-Europe westbound route, spot rates from western India (JNPT/Nhava Sheva or Mundra Port) to Felixstowe/London Gateway (UK) or Rotterdam fell to $1,650 per 20-foot container (TEU) and $1,900 per 40-foot container (FEU) by the end of November, down from $1,750 to $2,050, respectively.
For bookings from western India to Genoa (West Mediterranean), rates dropped from $1,950 and $2,150 to $1,800/TEU and $1,950/FEU, respectively.
On the eastbound routes (India imports), freight rates from major European ports also declined. Spot rates from Felixstowe/London Gateway or Rotterdam to western India fell to $900/TEU and $1,000/FEU, compared to $1,000/TEU and $1,200/FEU in late November.
From Genoa to western India, rates dropped from $1,000 and $1,050 to $850/TEU and $950/FEU, respectively.
India-U.S. Trade Decline
On the India-U.S. East Coast route, spot rates weakened further. Average freight from western India (Nhava Sheva/Mundra) to the U.S. East Coast (New York) fell to $1,850/TEU and $2,050/FEU, down from $2,200 and $2,500.
For shipments to the U.S. West Coast (Los Angeles), rates saw a steep drop from $3,900 and $4,800 to $3,100/TEU and $3,500/FEU.
For the India-U.S. Gulf Coast (Houston) trade, December’s average rates fell to $2,600/TEU and $2,900/FEU, compared to $3,500 and $3,800 in November.
Return route rates remained stable at $1,100/TEU and $1,500/FEU for the East Coast to India, while West Coast-to-India rates hovered around $1,200/TEU and $2,000/FEU.
Intra-Asia Trades and Other Routes
Freight rates for intra-Asia trades remained in the negative range. For example, west India-Yantian (South China) rates averaged $30/TEU and $40/FEU, while west India-Tianjin (North China) bookings dropped as low as $5/TEU and $10/FEU.
On the west India-Shanghai (Central China) route, rates stayed negative at $5 per TEU or FEU. Carriers also accepted bookings as low as $5/TEU or FEU for west India-Singapore shipments.
Rates for west India-Jebel Ali (Dubai) bookings dropped from $400/TEU and $600/FEU in October to $75/TEU and $150/FEU, respectively.
Export Challenges Persist
After a strong rebound in October, Indian export trade value declined 5% year-on-year in November.
Ashwani Kumar, President of the Federation of Indian Export Organizations (FIEO), attributed the challenges to geopolitical tensions and supply chain disruptions. “Rising tensions between Israel and Iran have created logistics challenges, as a significant portion of our trade with Europe, Africa, CIS, and Gulf countries transits through the Red Sea or Gulf region,” he said.
Kumar emphasized that trade financing remains a critical issue for MSMEs, affecting the global competitiveness of Indian products.
FIEO urged the government to enhance liquidity measures, provide deeper interest subsidies, and extend the interest equalization scheme by at least five years to ensure a predictable business environment.
The organization also highlighted the importance of concluding key FTAs with the UK, Peru, Oman, and Sri Lanka, urging the government to accelerate negotiations.
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