Sarjak Container Lines reports that India–Europe freight rates have increased sharply in December, with spot container prices moving between 50 per cent and 60 per cent higher. The company notes that carriers are managing capacity on the India–Europe route through blank sailings and service adjustments.
On Asia–Europe routes, blank sailings remain at 8 per cent to 10 per cent of scheduled capacity. Drewry data shows 64 cancellations out of 719 planned sailings over the next five weeks through early January 2026. These adjustments are intended to maintain vessel utilisation above 90 per cent. Market participants describe global demand as subdued in several sectors, yet these measures have contributed to upward movement in spot rates.
According to Sarjak CEO Supal Shah, "Shippers on the crucial India–Europe trade lane are facing unprecedented volatility this December, with spot container freight rates reportedly soaring by 50 per cent to 60 per cent (from $750 per 40 feet Container to $1200 per 40 feet Container) in a matter of weeks." Shah adds that the increases are linked to General Rate Increases announced by carriers and reflect capacity management rather than demand-driven shifts. He notes that recent declines have brought rates close to unprofitable levels.
Shah explains that capacity reductions are being used to lift rates ahead of the 2026 contract negotiation period. Seasonal export activity is also influencing the rate environment. The year-end export push to Europe, coupled with manufacturers' final production targets, creates higher cargo volumes that support the enforcement of GRIs and surcharges.
India's table grape harvest remains a key driver during December and January. Nashik exported 157,000 metric tons last season, while national volumes reached 344,000 metric tons in 2023–24, more than 70 per cent of which were destined for Europe. Exporters are targeting 10 per cent growth in the current season. However, erratic rains may shorten the harvest window to two or three weeks, concentrating volumes and affecting reefer container availability.
Each 40-foot reefer container carries 20 to 25 tons, and premium varieties such as Thompson Seedless have established demand in Europe. Historically, the influx of reefer cargo during this period has pushed reefer lane rates higher by 20 per cent to 30 per cent.
Source: Port Technology International
