Export downturn, freight rates plummeting! India even experienced negative shipping costs

According to the information received by Hainan West Asia, for the major Asian transit ports from India to Port Klang and Singapore, the sharp decline of container trade after the epidemic seems more obvious.
The booking price from Nhava Sheva (JNPT) or Mundra to Port Klang is as low as 1 USD/TEU. These two ports account for the majority of India's container trade.
For Singapore, carriers are willing to receive goods at a price of 5 USD/TEU, while the average shipping cost from India to Shanghai and Hong Kong has also dropped to around 10 USD/TEU.
Trends in Asian shipping rates
We understand that in reality, goods are usually booked on a "no freight" basis, but for insurance reasons, invoices must be issued based on the symbolic freight amount. We just need to find the source of goods, "said an Indian freight forwarder.
In addition, Indian customs rules typically affect the freight rate trends of intra Asian shipping.
According to customs regulations, the carrier must reexport empty containers and duty-free goods within six months after the goods arrive at the port to avoid import taxes. Therefore, excess inventory goods are usually transported back to the port of origin or demand location.

However, in recent weeks, there has been an upward trend in reverse heading freight rates between these ports.
According to information obtained from Hainan West Asia, for goods imported from Singapore/Shanghai to Navasheva/Mondra, the main shipping companies provide a freight rate of 450 USD/TEU, while the freight rate in Hong Kong is 325 USD, which is about 30% higher than the price two weeks ago.
From historical data, it can be seen that most empty containers destined for India occur on intra Asian routes, with containers from China dominating.
As demand slows down, the outflow of empty containers from Indian ports significantly exceeds the inflow. For example, according to existing data, between April and June, the export quantity of empty containers in Navasheva was approximately 180000 TEUs, while the import quantity of empty containers was approximately 93000 TEUs.
According to data, in the case of sluggish exports, the volume of container freight in Indian Railways fell 12.5% month on month in June, and the volume of import and export cargo containers of Indian Railways also fell 11% year on year.
However, the industry seems to be betting that with the diversification of trade in the region, there will be a certain degree of recovery in freight volume within Asia.
For further information of market trends and prices, please get in touch with Hainan West Asia Group .

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