India to US East Coast rates reached about $11,000 per container by 22 September, up 461 per cent since May, as carriers cut capacity.
Container space on India-US trade has become scarce heading into the fourth quarter, with spot rates to the US East Coast reaching about $11,000 per 40ft container on 22 September, up 461 per cent from $1,960 on 8 May. The squeeze comes as India’s merchandise exports to the US rose 21.8 per cent year on year to $8.4 billion in August.
Carriers have cut supply. MSC withdrew its Indus Express service in May, which OEC Group estimates removed 20 to 25 per cent of market capacity, and ONE replaced its West India North America service in July, cutting a further 2 to 5 per cent. OEC Group manager Craig Lind said carriers “have become much more aggressive about managing supply”. Port and depot pressure adds to the strain. Nhava Sheva handled 831,956 TEUs in August and Mundra 819,046, while containers are short at inland depots.
Relief is coming only slowly. Maersk plans to deploy eight 9,000 TEU ships from November, adding about 1,000 to 1,500 TEUs a week, and CMA CGM will add a Halifax call to its weekly INDAMEX service. Maersk advises customers to book at least six weeks ahead.
Source: Yahoo Finance
