According to recent data, short-term contract rates for shipping from West India to Europe have increased. Rates from West India to the UK and the Netherlands have risen to $650 per 20-foot container and $700 per 40-foot container, up from $550 and $650 respectively. For bookings to Genoa in the West Mediterranean, rates have increased to $800 per 20-foot container and $750 per 40-foot container. However, rates for eastbound cargo, such as imports into India, have continued to fall. Rates from Felixstowe and Rotterdam to West India have cooled to $600 per 20-foot container and $650 per 40-foot container.
In regards to India-US trades, short-term contract prices have steadied or slightly decreased since August. Rates for shipments from West India to the US East Coast have moderated to $1,700 per 20-foot container and $2,100 per 40-foot container. Rates for shipments to the US West Coast have not seen major changes, remaining at $1,600 per 20-foot container and $1,700 per 40-foot container. The rate trendline suggests that carriers have made no recovery from the September 1 rate increase attempts. Rates on the return leg of the US-India trades have remained steady since August.
Rates for intra-Asia trades out of India have further declined in September, with the exception of North/South China bookings. For West India-Yantian, rates are at $115 per 20-foot container and $230 per 40-foot container. Rates for West India-Central China have hit rock bottom levels at $5 for both 20-foot and 40-foot containers. Rates to Singapore have dropped 50%, while rates to Hong Kong remain steady. Rates for West India-Jebel Ali/Dubai shipments have also decreased to $50 per 20-foot container and $90 per 40-foot container. The decline in rates can be attributed to a sluggish global economy and decreased demand.
The Indian export trade has been struggling, with a 7% decline in merchandise exports in August. This is due to a contraction in the global economy, particularly in major economies like the EU, the UK, and China. Manufacturing in the Euro Zone and the US has also contracted, and there has been a significant fall in consumer spending across advanced economies. However, the president of the Federation of Indian Export Organisations (FIEO) remains optimistic that Indian exports will rebound in the coming months as fresh orders come in for the holiday season.
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