Home > activity > [Gris]More GRIs await Indian shippers roiled by ocean capacity woes

[Gris]More GRIs await Indian shippers roiled by ocean capacity woes

Time:2021-07-10 17:52:58


  

  Average export spot rates on the India-US trades are currently at $3,205 per TEU and $4,010 per FEU from Jawaharlal Nehru Port Trust (above) and Mundra to the US East Coast. Photo credit: JNPT.

  Indian shippers hoping for relief from soaring ocean freight pricing seem to have a long haul to navigate as container carriers have lined up yet another round of hefty general rate increases (GRIs) on larger trades out of the country.

  CMA CGM has issued a notice announcing it will jack up its existing published rates from India to the US West Coast by $900 per TEU and $1,000 per FEU for all types of cargo from Feb. 1.

  Mediterranean Shipping Co. will implement a GRI of $500 per TEU and $600 per FEU for all types of cargo moving from India to the US and San Juan, Puerto Rico, effective Feb. 15. The carrier from Feb. 1 will also impose a rate hike of $500 per container on India-Canada cargo.

  “In order to maintain the high level of reliability and efficiency of our services to meet the needs of our customers, MSC has decided to implement a general rate increase,” the Geneva-based liner said in a customer advisory.

  Joining the new “GRI push,” Hapag-Lloyd has filed a 30-day notice — mandated by the US Federal Maritime Commission — seeking to hike rates by $480 per TEU and $600 per FEU on shipments from India to the US and Canada, also effective Feb. 15.

  Average export spot rates on the India-US trades are currently at $3,205 per TEU and $4,010 per FEU from Jawaharlal Nehru Port Trust (JNPT) and Mundra to the US East Coast (New York). Given that context, the new GRI move could see average spot rates on this lane get close to $4,000 per TEU, almost double the $2,020 per TEU carriers were charging just six months ago, according to JOC market research.

  Major carriers active out of India-Europe trades have also drawn up fresh GRI plans for February. Hapag-Lloyd said it has revised rates for containers shipped during Feb. 1-14 from JNPT/Mundra to Felixstowe upward at $2,462 per TEU and $4,174 per FEU, from $1,962 and $3,174, respectively. Westbound shipments on other port pairs, including JNPT/Mundra-Rotterdam, will also attract rate increases ranging between $250 and $500 per TEU.

  Those compare with an average level of $950 per TEU and $1,150 per FEU during February last year, reflecting a near three-fold increase, JOC research shows.

  “In a continued effort to provide (customers) with a high level of service and uninterrupted liner services and equipment supply, Hapag-Lloyd announces an increased ocean tariff for all cargoes for 20-foot and 40-foot general purpose (including high cube container) on the trade — Indian Subcontinent to North Europe,” the German carrier said in an advisory.

  A Cochin-based non-vessel-operating common carrier (NVO) told JOC.com while carriers are generally apathetic to spot booking requests in order to prioritize contract clients, average pricing to the US East Coast from Cochin is hovering at about $4,200 per TEU and $4,900 per FEU, with some add-ons for premium routings.

  “Rates do not seem to be dropping at all. They are either climbing or clinging tightly to the current levels,” the NVO source said.

  Although a sudden demand upswing is a key factor helping carriers keep rates at elevated levels or even historical highs, that undiminished pricing power also seems to reflect their success in deftly managing capacity as the pandemic quagmire lingers.

  Bency Mathew can be contacted at bencyvmathew@gmail.com.

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