Indian ports shows hiking freight rates by nearly 70% in August
August 2024 freight rates have surged nearly 70% year-on-year across Indian ports, showing global shipping disruptions, sustained demand and capacity constraints, which will add to the cost burden of India Inc., according to India Shipping News.
The increase comes after a gap of over two years. Average prices for 40ft high cube cargo-worthy containers surged quarter-on-quarter this year from $2,600 in Q1 (JanMarch, 2024) to over $2,800 in Q2 (April-June, 2024) across domestic ports, including Chennai, Nhava Sheva and Mundra, industry experts said. whereas the third quarter from July to Sept shows an uptrend too.
A lot of fluctuations showing in freight rates since 2020, initially following an upward trajectory starting in 2021. The rise was driven by the ongoing waves of Covid-19, which disrupted supply chains and severely impacted global trade.
Rates began to get down in FY23 as supply chains slowly stabilised. However, due to geopolitical tensions, freight rates started to rise again in Jan 2024, as disruptions such as the Red Sea crisis forced ships to reroute around the Cape of Good Hope, with the detour increasing both time and costs of freight and insurance.
