The lowering of container freight rates across the key trade lanes in June, according to cargo owners in India, would be short-lived, as the peak season begins in July. After months of skyrocketing costs and painfully limited equipment supply, freight forwarder sources stated that average contract rates for North America, Europe, and intra-Asia routes had dropped by double digits this month. Shippers and freight forwarders, on the other hand, are concerned that the price break will only be short, with predictions that rates will rise again next month as the industry enters peak season.
Costs for exports from the ports of Nhava Sheva (JNPT) and Mundra on India’s west coast to the US east coast (New York) are down to $8,317 per teu, from $10,090 last month, and $10,500 for a 40ft, down from $12,700, a 17% decrease. Freight to the US west coast has seen a 13% decline, on average.
June rates on the India-Europe trades have also dropped: from west India to London Gateway, carrier contract pricing is now hovering at around $6,009 per 20ft, versus $7,615 in May, down 21%, and at $7,141/40ft, down 11% compared with $8,015 at the end of last month. In the intra-Asia market to China, Hong Kong and Singapore, average pricing has fallen between 10% and 25%, data suggests. “There are also some indications that larger carriers are changing strategies by keeping more inventory on hand for the peak season period,” a Mumbai-based forwarder revealed. “At the moment, the pricing situation is better than in the past few months.”
