The recent surge in India-Europe trade rates has come to an end, with the market stabilizing into a more balanced supply-demand environment.
Local freight forwarders report a significant drop in spot rates from major carriers for late August sailings. Booking prices from Nhava Sheva/Mundra to Felixstowe/London Gateway/Southampton have decreased by up to $1,000 per standard dry container compared to the end of July.
“The peak demand is tapering,” says Vivek Kele, director at Teamglobal Logistics. “After a 20% increase between mid-July and early August, rates are now falling as we approach September.”
Spot rates as of Tuesday were: CMA CGM — $4,801 per TEU and $4,979 per FEU; Hapag-Lloyd — $5,439 and $4,980; and Maersk — $3,889 and $3,981. This is a sharp decline from the $5,800 per TEU and $6,000 per FEU quoted earlier in August.
Forwarders expect further rate decreases through September, a sharp contrast from the rapid rise seen in May when rates were around $2,500 to $2,600 per container.
Carriers had previously set higher freight-all-kinds (FAK) rates for August, but with falling demand, new surcharges have been announced, including Hapag-Lloyd’s $300 per container fee for cancellations and rollovers starting September 1.
