Freight rate surge stuns Indian importers on Asia-India trade routes

Indian importers are facing a significant spike in container freight rates on Asia-India trade lanes, particularly for shipments from China, highlighting ongoing volatility in the shipping market.

Spot rates on these routes have more than doubled in the past month. This sharp increase is adding to the financial strain on importers, exacerbating supply chain challenges amid a capacity crunch on Asia-India trade lanes. Over the past two weeks, several regional and mainline carriers have redirected vessels to other routes, including the Red Sea and the Mediterranean, reducing availability on these key trade lanes.

Adding to the woes, CMA CGM has announced three blank sailings on its AS9 (Asia-Subcontinent Express) service in December, impacting vessels like Zhong Gu Nan Ning, ONE Matrix, and TS Keelung. The company has urged customers to plan their shipments accordingly, further underscoring the tightening capacity on these routes.