+
India’s Exporters Face Freight Challenges
ROADS & HIGHWAYS

India’s Exporters Face Freight Challenges

India’s exporters are grappling with steep freight rates, container shortages, and limited shipping space, according to foreign container shipping lines. While freight rates have eased, dropping by 30-40% for shipments from India’s east coast to Europe and the U.S., exporters continue to face hurdles. Freight rates to the U.S. are now between $4,300 and $4,500 per twenty-foot equivalent unit (TEU), down from $5,500-$6,000, while rates to Europe have decreased to $3,000-$3,200 per TEU.

These reductions are partly due to the conclusion of the Christmas season cargo rush, where large volumes of goods were shipped in advance to meet Western market demands. Consequently, the cargo flow has slowed, easing space constraints on ships. However, concerns loom over a possible U.S. longshoremen strike in October, which could disrupt supply chains, creating container shortages and driving freight rates back up. Exporters are anxious about potential delays and space issues if this strike proceeds.

Shipping lines argue that while container shortages are reported, the situation is returning to normalcy, though not yet fully resolved. During the pandemic, the global supply chain was disrupted, causing a surge in demand for containers and shipping space, which drove prices higher. With the pandemic-induced boom over, rates were declining until geopolitical tensions, such as the Houthi attacks, caused shipping lines to reroute through the Cape of Good Hope, temporarily increasing freight rates.

Looking ahead, the introduction of new container ships with a cumulative capacity of 2.4 million TEUs in 2024 may add significant capacity and exert downward pressure on freight rates. However, uncertainties such as U.S. tariffs, global political tensions, and potential strikes will continue to impact global shipping and trade routes.

India’s exporters are grappling with steep freight rates, container shortages, and limited shipping space, according to foreign container shipping lines. While freight rates have eased, dropping by 30-40% for shipments from India’s east coast to Europe and the U.S., exporters continue to face hurdles. Freight rates to the U.S. are now between $4,300 and $4,500 per twenty-foot equivalent unit (TEU), down from $5,500-$6,000, while rates to Europe have decreased to $3,000-$3,200 per TEU. These reductions are partly due to the conclusion of the Christmas season cargo rush, where large volumes of goods were shipped in advance to meet Western market demands. Consequently, the cargo flow has slowed, easing space constraints on ships. However, concerns loom over a possible U.S. longshoremen strike in October, which could disrupt supply chains, creating container shortages and driving freight rates back up. Exporters are anxious about potential delays and space issues if this strike proceeds. Shipping lines argue that while container shortages are reported, the situation is returning to normalcy, though not yet fully resolved. During the pandemic, the global supply chain was disrupted, causing a surge in demand for containers and shipping space, which drove prices higher. With the pandemic-induced boom over, rates were declining until geopolitical tensions, such as the Houthi attacks, caused shipping lines to reroute through the Cape of Good Hope, temporarily increasing freight rates. Looking ahead, the introduction of new container ships with a cumulative capacity of 2.4 million TEUs in 2024 may add significant capacity and exert downward pressure on freight rates. However, uncertainties such as U.S. tariffs, global political tensions, and potential strikes will continue to impact global shipping and trade routes.

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?