CN analysis: Container freight rates out of India begin to trend down after strong gains in July

On the westbound India-Europe trade, average spot rates for loads from West India [Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port] to Felixstowe/London Gateway (UK) or Rotterdam in April have moved higher to US$4,800 per 20-foot container and US$5,000 per 40-foot container, from US$4,200 and US$4,500, respectively, at the end of July. For West India-Genoa (the West Mediterranean) bookings, TEU rates have risen to US$4,800/TEU, from US$4,200, while FEU rates have held firm at US$4,600/FEU, the CN analysis shows. However, eastbound cargo (imports into India) rates for these port pairings have declined month on month.  Spot rates for bookings from Felixstowe/London Gateway or Rotterdam to West India have cooled to US$1,100/TEU and US$1,350/FEU, from US$1,300 and US$1,450/FEU, respectively, reported at the end of July.

For trades from the West Mediterranean (Genoa) to West India, July rates have stood steady at US$950/TEU and US$800 per FEU.

Spot prices on the India-US East Coast trades have measurably softened in August, after peaking through July.  Average rates for shipments from West India (Nhava Sheva/Mundra) to the US East Coast (New York) have fallen to US$8,000/TEU and US$9.000/FEU, from US$9,500 and US$10,500 in July

Rates on the US East Coast-West India trades (return leg) have generally held firm month-on-month, hovering at US$550/TEU and US$750/FEU.  From US West Coast to West India, booking rates have stood at US$1,950/TEU but FEU rates have soared to US$3,300/FEU, from US$2,500 a month ago.

Average rates from the US Gulf Coast to West India have seen modest declines from July averages – hovering at US$1,200/TEU and US$1,950/FEU, down from US$1,300 and US$2,050, respectively.

Carrier rates on intra-Asia trades out of India have continued to be in negative territory, on most port pairings, the CN analysis found.  For West India-Yantian (South China), the analysis put average rates in April at US$30/TEU and US$40/FEU, and for West India-Tianjin (North China), carriers are accepting bookings at as low as US$5/TEU and US$10/FEU.

For West India-Shanghai (Central China) trades, rates have also remained in negative territory, at as low as US$5 per TEU or FEU. Also, for West India loads to Singapore, carriers are also accepting bookings at as low as US$5/TEU or FEU. August rates for West India-Jebel Ali (Dubai) bookings have weakened slightly month on month, to US$625/TEU, from US$675, and US$1,200/FEU, from US$1,375. Meanwhile, India’s merchandise export trade saw a 1% dip in July, after a streak of monthly gains in the new fiscal year 2024-25 that began in April. According to provisional government data, total goods exports by value amounted to US$33.98 billion.

The Federation of Indian Export Organisations (FIEO), representing exporters blamed ongoing supply chain challenges for the negative performance. According to FIEO: “The need of the hour is to take steps on the liquidity front with deeper interest subvention support and continuation of interest equalisation scheme for five years.” The association also appealed: “Besides, addressing the Middle East geopolitical situation, Red Sea challenges by ensuring availability of containers, marine insurance and rationale increase in freight charges, the government may also look at facilitating trade through easy and low cost of credit, marketing support and conclusion of some of the key FTAs [free trade agreements] with the UK, Peru and Oman soon.”