Container freight rates along major trade routes between India and Europe have surged following the emergence of security risks to shipping companies, SteelOrbis has learned from data collated from industry circles.
Sources said that the freight rate for the trade route originating from Indian ports along the west coast has increased to $600 per 20-feet container to Rotterdam port, compared to $450 per 20-feet container prevailing at the end of November. The rate has increased to $650 per 40 feet container to Rotterdam against $550 per 40-feet container at the end of November.
Freight rates from India to western European destinations like Genoa port are being quoted by shipping companies at $750 per twenty feet-equivalent (TEU) compared to $425 TEU last month, trade circles said.
Rates from Rotterdam to ports in western India are quoted in the range of $850-1,050 per TEU, up from $750-850 per TEU last month.
Freight bookings from western Indian ports to ports in the UK are currently being quoted in the range of $850-900 per TEU, against $650-750 per TEU a month ago.
“The challenges in shipping logistics owing to increasing attacks on ships are pushing up freight rates and insurance costs, adding to already-high uncertainties in global trade. We are hoping that the disruptions are addressed quickly by the coalition patrolling the Red Sea, and that rule of law is maintained in international waters,” Ajay Sahai, director general of the Federation of Indian Export Organizations (FIEO), said.
On Sunday, a crude oil tanker with 25 Indian crew members suffered a drone attack in the Red Sea region.