container shipping lines have resumed efforts-albeit on a modest scale-to prop up freight rates in Indo-US trade as they try to rebalance supply with current demand conditions.
Mediterranean Shipping's Geneva-based liner will implement a combined freight rate hike of $500 per container for all types of cargo shipped from India to the United States and San Juan, Puerto Rico, significantly expanding its network beyond India from March 23. MSC Agents (India) said in a trade advisory: "In order to maintain the high reliability and efficiency of our services to meet the needs of customers, MSC has decided to implement a general rate hike."
The interest rate slide that began in August last year has returned average short-term contract prices on India's major trade routes to pre-pandemic levels.
In terms of European routes, on February 10, the market freight rate (sea freight and sea freight surcharge) for exports from Shanghai Port to European basic ports was US $925/TEU, a slight decrease of 3.7 per cent from the previous period. Mediterranean routes, market conditions and European routes are basically synchronized, spot market booking prices continue to fall slightly. On February 10, the market freight rate (sea freight and sea freight surcharge) for exports from Shanghai Port to the Mediterranean basic port was US $1724/TEU, down 1.7 per cent from the previous period.
North American routes, transport demand recovered more slowly after the holidays, supply and demand fundamentals were weaker, and market freight rates continued to adjust. On February 10, the market freight rates (sea freight and sea freight surcharge) for exports from Shanghai Port to the US West and the US East were US $1293/FEU and US $2553/FEU respectively, down 5.1 per cent and 5.7 per cent respectively from the previous period.
is expected to increase the risk of recession in Europe and the United States in the future, high inflation to suppress the background of terminal consumer demand, freight rates still have room to fall, but considering the cost factors to support and the impact of the return of goods to the United States and West, the United States and West freight rates are expected to stop falling, into the shock bottoming process.
procurement transfer brings growth potential
The Central Bank of India raised interest rates by 25 basis points as scheduled, raising interest rates from 6.25 per cent to 6.50 per cent, the highest level since December 2018, and has raised interest rates six times since April 2022, for a total of 250 basis points. Arguably, India's resilient trade indicators have encouraged airlines to raise rates from recent lows.
While Indian exports have cooled from their epidemic-related peak a year ago, industry leaders generally agree that emerging economies have long-term growth potential as global manufacturers and importers look for alternatives to doing business with China in a rapidly changing geopolitical context. New Delhi has recently attracted large-scale production investment interest from some of the world's high-tech industry giants, notably Foxconn's semiconductors and Apple's iPhone.
The co-founder of's Mumbai-based Digital Freight Forwarding Freightwalla said "the diversification of US importer sourcing presents a huge opportunity for carriers to increase their shipments [from India] we are seeing a shift in sourcing that, according to all forecasts, will accelerate in the coming years. "
Forwardernet.com