Rates to other regions too have increased
The shipment cost to US has touched $10,000 for a 40-foot container, the highest since the Covid disruption. Ronak Shah, a customs house agent, said, “Before the West Asia war, a 40-foot container to the Gulf would cost around $300. The rate is now $4,000. Similarly, the rate to US has gone up from $1,500 before the conflict to $10,000 currently. The freight to Europe has climbed from $1,200 to $5,000 and that to Mombasa has spiked from $1,200 to $3,400. Freight rates from China to India have also climbed, with Shanghai-Mundra rates reaching about $3,100. Some Gujarat exporters said longer waits for vessel confirmation are stretching working capital cycles, while buyers continue to demand firm delivery commitments despite reduced sailing options and freight rates of about $10,000 per container to US.
Because of higher freight rates, “Industries are facing a 15-20% rise in input costs. Because the market remains highly competitive,” Patwari said, most of this additional cost is being borne by exporters. You Can Also Check: Gold Rate in Ahmedabad | Silver Rate in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad | Ahmedabad AQI | Weather in Ahmedabad | Petrol Price in Ahmedabad | Diesel Price in Ahmedabad | CNG Price in Ahmedabad | LPG Price in Ahmedabad Stay updated with the latest Ahmedabad news.
Exporters and logistics operators said vessel unavailability, shifting carrier deployments and container shortages are driving the increase. Insurance costs for Gulf-bound cargo have also increased, adding to landed costs, he said. More vessels are being deployed on China-to-Gulf trades, tightening space on other lanes and worsening equipment shortages,” Shah said. Gujarat exporters said the increase is putting pressure on margins, pricing and delivery commitments, particularly for shipments from Mundra and other regional gateways. At a time when the industry is facing tax uncertainty and suspended trading, higher freight costs are putting further pressure on businesses,” said Rakesh Patel, secretary, Isabgol Processors Association. Pathik Patwari, chairperson, Indian Chamber of Commerce (Gujarat) chapter, said freight costs have risen globally amid higher daily vessel charges and route diversions by carriers avoiding the Middle East.
Ahmedabad: Exporters have hit choppy waters as ocean freight rates to major markets have surged in the past three months. Transit times and schedule reliability have weakened as carriers adjust vessel rotations. “Shipping lines have reduced vessel rotations in the last few months as capacity has been reallocated. “The overall rise in freight rates is adding to export costs. Container shortages at inland locations have further raised repositioning costs and lengthened booking windows. Limited sailings are also making it harder for exporters to secure equipment around production schedules. Download the TOI App.