Exporters in India are facing a second round of container freight rate increases, with carriers implementing hikes of up to 40% from April 1.
Shipping rates from India to Europe have increased by up to US$1,000 per container. Carriers including Mediterranean Shipping Company, AP Moller-Maersk, and CMA CGM have applied the increases across key routes. These adjustments come in addition to Emergency Conflict Surcharges, War Risk Premiums, Emergency Fuel Surcharges, and Inland Emergency Fuel Surcharges, increasing total logistics costs.
The second round of increases differs from earlier adjustments in March. Initial increases were viewed as temporary, while current rates reflect longer-term cost changes linked to routing and fuel use. Rerouting via the Cape of Good Hope is extending transit times by 10 to 14 days and increasing fuel consumption and insurance costs.
The India-Europe corridor is affected due to the disruption in the traditional Suez Canal and Red Sea routes. Alternative routing is increasing voyage costs, which are being passed on to exporters.
Sectoral impact varies. Perishable goods exporters handling shipments valued at up to US$1.5 billion annually are facing longer transit times, affecting cold chain management. Higher logistics costs are also affecting competitiveness in export markets.
Other sectors are also affected. Pharmaceutical companies face losses of up to US$750 million if conditions persist, while smartphone exports could decline by up to 25% due to delays and higher freight costs.
In the rice sector, exporters are exploring alternative trade arrangements. Around 400,000 tons of basmati rice are reported to be held at ports or in transit as shipping and payment channels are disrupted.
Exporters indicate that current conditions are linked to extended rerouting, higher fuel use, and limited vessel availability, with ongoing uncertainty affecting logistics planning and cost structures.
Source: Maritime Gateway
