Container capacity is becoming scarce on India's west coast. Exporters report that containers are not being shipped as planned, bookings are being postponed, and individual vessels are skipping port calls. The ports of Mundra in the state of Gujarat and Jawaharlal Nehru Port near Mumbai, still commonly referred to in the industry as Nhava Sheva, are particularly affected.
The problems are closely linked to disruptions in the Persian Gulf and around the Strait of Hormuz. Shipping lines have adjusted services, rerouted cargo, or restricted bookings for certain Gulf ports. As a result, additional transshipment containers are landing at Indian ports or remaining longer on terminals. At the same time, there is a shortage of available slots on various routes and suitable empty containers.
Additionally, monsoon rains, temporarily interrupted terminal operations, and bottlenecks in truck pickup have exacerbated the congestion at Nhava Sheva. This demonstrates that the conflict is the trigger for many disruptions, but not the sole cause of the current capacity constraints.
For shippers, costs are rising significantly. Indian exporters report doubled or even substantially higher market rates on certain routes. However, these reports represent individual quotes and not universally applicable freight rates.
Official shipping line surcharges are being added on top. MSC has been charging a congestion surcharge of 500 US dollars per container since July 11 for traffic from Northern Europe to the Indian subcontinent. According to industry reports, CMA CGM has announced a peak season surcharge of 1,500 US dollars per container for exports from India to Northern Europe and the Mediterranean.
For certain Gulf services, Maersk is currently charging emergency freight costs of 1,800 US dollars for a 20-foot container, 3,000 US dollars for a 40-foot container, and 3,800 US dollars for reefer, special, and hazardous cargo containers. A passage through the Strait of Hormuz may incur an additional 1,000 US dollars per container.
The critical issue is that in addition to ocean freight, demurrage and detention charges are also increasing. Demurrage accrues when a container remains on the terminal longer than the free time period. Detention occurs when the container is returned late outside the terminal.
India's shipping authority had already called on shipping lines in March to transparently disclose all costs and not to impose excessive or opportunistic surcharges. However, exporters continue to report last-minute and sometimes difficult-to-understand charges.