Container rates on connections from China to India are becoming significantly more expensive. According to market data, spot rates have more than doubled since July. For Shanghai to Jawaharlal Nehru Port, or JNPA, rates of approximately USD 3,700 per TEU are being quoted. One TEU corresponds to a 20-foot container. For Shanghai to Chennai, the range is approximately USD 3,600 per TEU.
The increase has several reasons. Demand is stable, while at the same time, shipping lines are deploying vessels and containers where they can earn more on major east-west routes. This creates capacity shortages on certain intra-Asian services. When skipped sailings or port problems are added to the mix, the situation quickly becomes tight.
For shippers, the stated price is only a guideline. Terminal costs, fuel surcharges, documentation fees, and local costs can be added to the ocean freight component. The price for a 40-foot container also cannot simply be multiplied by two.
Those who regularly ship to India should not overlook quotes with short validity periods. At the same time, it is worthwhile to check multiple departure ports and shipping lines. A low rate helps little if the container waits two weeks for a slot.