As carriers impose fresh general rate increases (GRIs), the average westbound spot rates for cargo shipped from India’s top container ports, JNPT and Mundra, to Northern Europe and the Western Mediterranean have risen nearly 25% to $1,250 per teu and $1,600 per feu for CMA CGM
Eastbound rates from Europe to India have also moved up sharply, hitting $1,100 per teu and $1,400 per feu from Felixstowe to JNPT/Mundra, compared with $750 and $1,000 at end-February 2020. On Mediterranean-India trades, carriers have generally sought $550 per teu and $850 per feu for cargo moving from Genoa, Italy, to JNPT/Mundra, up from $425 and $650, respectively.
General carrier tariff rates from JNPT/Mundra to the US East Coast (New York) have continued their northward trajectory over the past month, fuelled in large part to an uptick in demand. Average rate levels on that trade lane are hovering at about $2,000 per teu and $2,400 per feu, again up 25% from end-February.
Carriers have also begun imposing an “equipment imbalance surcharge,” citing additional inventory re positioning costs. MSC has been asking for $300 per container on cargo shipped from the Indian ports of JNPT, Mundra and Hazira to ports in eastern and southern Africa.
An announcement made on 2 March by Hapag-Lloyd, that is scheduled to come into force 1st April in line with the US Federal Maritime Commission’s 30-day advance notice requirement, suggests that carriers are looking to take advantage of a more favourable spot market. The German container line plans to hike rates on India-US trades by $500 per teu and $600 per feu for all types of cargo.
However, it is understood that average spot rates on the US East Coast-West India leg will continue to remain at more or less the same levels they were in February.