INCREASING FREIGHT COST IN INDIA

The increasing freight costs in India can be attributed to several factors, including global shipping disruptions, sustained demand, and capacity constraints . These challenges have led to a significant surge in freight rates across Indian ports, with an increase of nearly 70% in August 2024 compared to the previous year .

To address these challenges, the Global Trade Research Initiative (GTRI) has recommended implementing strategies to boost domestic container production, enhance the role of local shipping companies, promote the use of domestic containers, and strengthen local shipping firms .

Some of the key statistics related to increasing freight costs in India include :
– Freight rates have surged nearly 70% year-on-year across Indian ports.
– Average prices for 40ft high cube cargo-worthy containers have increased from $2,600 in Q1 (Jan-March, 2024) to over $2,800 in Q2 (April-June, 2024) across domestic ports.
– Freight costs for Indian exporters shipping goods to Europe and the US have more than doubled in the past year, driven by disruptions in the Red Sea.
– The global container shortage, first triggered by the Covid-19 pandemic, may soon reemerge, causing severe difficulties for Indian exporters.