In the container shipping sector, the India-Persian Gulf corridor is witnessing a series of rate adjustments. Mainline carriers have declared general rate increases (GRIs) and peak season surcharges (PSSs) for shipments from India to various ports in the Middle East, starting next week. CMA CGM has announced a rate increase from Nhava Sheva and Mundra to Middle East destinations by US$200 per container effective from 17 April, citing the need for reliable service. This adjustment will commence with the vessel “Spil Citra” arriving at Nhava Sheva on 21 April and Mundra on 23 April. Hapag-Lloyd will implement a peak season surcharge of US$100 per TEU and US$200 per FEU for reefer shipments from India to Umm Qasr and Dammam, applicable from 20 April until further notice.
Freight rates on the India-Middle East route, particularly to Jebel Ali, have been stable or slightly increasing, with current average rates from West India at US$250 per TEU and US$500 per TEU. The trade volume between India and the UAE has grown significantly, partly due to the Comprehensive Economic Partnership Agreement (CEPA) established in 2022. This has led carriers like Maersk to enhance service offerings on this route, supporting the movement of key commodities such as electronics, perishables, retail goods, and chemicals. The goal is to elevate bilateral non-oil trade to US$100 billion within five years.
Contrastingly, rates from India to Europe/Mediterranean and the United States have declined from previous highs post-Red Sea crisis. Despite these challenges, Indian ports have reported an increase in container volumes for the fiscal year 2023-24, with Mundra and Nhava Sheva experiencing growths of 12% and 6% respectively.