Given how unstable the market is, Indian importers who depend on commodities from Asia, especially China, are seeing yet another wave of container freight pricing shocks. Market data shows that over the past month or two, spot prices for intra-Asia-India trading have more than doubled.
Ocean carriers are now charging $1,600 per teu and $1,900 per feu for space booked to Nhava Sheva from Shanghai, up from $800 and $900 a month earlier. Singapore-Nhava Sheva shipments are now moving at $1,250 per teu and $1,550 per feu, respectively, compared to the mid-October averages of $700 and $1,000. Rates from other Asian ports to India have also sharply improved.
Singapore-Nhava Sheva shipments are now moving at $1,250 per teu and $1,550 per feu, respectively, compared to the mid-October averages of $700 and $1,000. Rates from other Asian ports to India have also sharply improved. Several regional and mainline carriers that had opportunistically deployed extra tonnage to capitalize on the China export rush earlier repositioned vessels elsewhere, with some phased into Red Sea/Mediterranean trades, causing a significant capacity shortage in the Asia-India market over the past two weeks, according to industry sources.
To exacerbate that worry, CMA CGM has informed Indian clients that the Zhong Gu Nan Ning, ONE Matrix, and TS Keelung are the three impending blank sailings on its AS9 (Asia-Subcontinent Express) service in December. On its present eastbound journey, CMA CGM’s AS6 service, another intra-Asia operation it oversees using slot space it purchased from Cosco, would similarly avoid Hong Kong and India’s Pipavav port. In the past, the majority of India’s imports of consumer and industrial goods came from Asian markets. Additionally, because of the local festival-related demand, the flow of Indian sourcing typically picks up in the second half of the year.
In the meantime, October saw significant increases in the export of Indian goods, giving policymakers and industry participants more cause for optimism. According to the most recent provisional figures, the total outbound commerce for the month by value increased 17% year over year, the greatest gain in over a year. According to industry insiders, the surge in Indian garment trade during the unrest affecting Bangladesh’s industry verticals may have contributed to the improved export performance.
