India’s port cargo volumes increased 7% year-on-year in August, while freight rates surged 132%, according to a recent assessment by Jefferies, highlighting stronger cargo activity alongside a sharp rise in shipping costs.
The increase in port volumes points to continued momentum in India’s trade and logistics activity. Higher cargo throughput was recorded despite ongoing disruptions and volatility across international shipping markets.
The sharp rise in freight rates has been driven by a combination of factors affecting global shipping capacity, vessel deployment and trade routes. Higher transportation costs can increase the logistics burden for exporters and importers, particularly on long-distance international routes.
India’s major ports have continued to handle growing volumes as domestic demand, manufacturing activity and merchandise trade support cargo movement. Port operators and logistics companies are also investing in capacity, multimodal connectivity and technology to improve cargo-handling efficiency.
The latest figures underline the contrasting trends in the sector: cargo volumes are expanding, while elevated freight rates are increasing costs across supply chains.
Jefferies’ assessment provides an indication of the changing operating environment for India’s port and logistics sector, with cargo growth remaining positive even as international freight markets experience significant rate volatility.