In the West India-Europe trade, average contract prices from West India [Jawaharlal Nehru Port (JNPT)/Nhava Sheva or Mundra Port] to Felixstowe/London Gateway in the UK or Rotterdam in the Netherlands softened to $1,250 per 20-foot container and USD 1450 for a 40-foot container from USD 1,300 and USD 1,600 at the end of December.
West India and Genoa (Western Mediterranean) average freight rates fell to $1,200 TEU and $1,350 per FEU compared to December levels of $1,500 TEU and $1,600 FEU.
At the same time, the prices of eastbound cargo (imports to India) remained relatively stable when compared month on month. As per the analysis, the rates are now at US$1,300/20-foot box and US$1,400/40-foot box for bookings from Felixstowe/Rotterdam, reduced from US$1,400 and US$1,600, but have seen variations for Indian cargo to the West Mediterranean (Genoa) – hovering at US$1,150/20-foot container and US$1,400/40-foot container.
Average short-term contract prices for Indian cargo to the US East Coast (New York) continued to decline sharply from December levels, falling to $2,550 per TEU, compared to US $3,700 and $4, 150 per FEU. $5,050 and $1,850 per TEU from $2,075 and $2,650/FEU from $3,050 for shipments to the US West Coast (Los Angeles).
In the West Indies-US Gulf Coast (Houston) trade, average tariffs have come down to $3,675 per 20-foot container and $4, 950 per 40-foot container, compared to $3,850 and $5,250 in December.
The return average contract prices were unchanged from December levels for the major operators, excluding USEC West Indian reserves. According to CN analysis, tariffs are now US$855 for 20ft box reduced from US$910, and US$1100 for a 40 ft. box reduced from US$1125 from USEC; From USWC, the rates have come down to 2,484/20-foot box from US$ 3,193/40-foot box, and $1,770/20ft and $1,843/ 40 ft. per crate from the Gulf Coast to West India (Nhava Sheva/Mundra).
India’s inter-Asian trade prices are also down from December averages, with West Indies and South China falling to US$ 240/20-foot box and US$ 365/40 foot respectively, from the previous rates that were, US$257 and US$382, based on the analysis that was taken a month ago.
Average contract tariffs for West India (Nhava Sheva/JNPT or Mundra) to Shanghai (Central China) bookings fell from $125 to $100 per 20ft container, but the tariff remained the same at $130 per 40ft box. Freight rates from India to Tianjin (Northern China) are now $125/20ft and $250/ 40ft, down from $150 and $300 in December.
The major carriers who are accepting orders from India to Hong Kong at $100/20ft container, compared with $125, and for 40 ft. containers, the tariff remains unchanged at $130, according to CN analysis based on December’s trend line.
December rates on West India-Singapore cargo remained unchanged at US$50/20-foot container and US$100/40-foot box, month-on-month.
Return contract levels continued to decline, with bookings from Tianjin to the Caribbean down an average of about 20% from December levels, according to CN analysis. Along with CN analysis, India’s merchandise exports got a setback of 12% in December, according to government data.
“The decline in merchandise exports reflects stringent global trade conditions due to high inventories, economic slowdown, high currency volatility, and geopolitical tensions,” said A Sakthivel, president of the Federation of Indian Export Organizations (FIEO). Furthermore, he said that the growth numbers were also affected by the drop in commodity prices and the limitation of some exports to control the price increase in the domestic market.
The FY 2023-2 budget is expected to catalyze efficiency improvement initiatives under Gati Shakti and the National Logistics Policy, taking India a step closer to its vision of USD 2 trillion by 2030, said Rizwan Soomar, Managing Director. , DP World Subcontinent, in a statement.