India - Europe Ocean Freight Rates Under Pressure
Container shipping lines are leveraging vessel swaps, box imbalances, and service gaps to justify fresh rate increases.
After a brief dip in early May, ocean freight rates from India to Europe are climbing once again, with widespread increases set to take effect from mid-June. The new round of hikes is being driven not by demand surges, but by a tightening supply of equipment and vessel space, factors that are giving carriers the leverage they need to push rates higher.
Although westbound volumes have remained largely steady, our colleagues across India are reporting that rate levels from key ports such as Nhava Sheva and Mundra to North European gateways like Felixstowe, London Gateway, and Rotterdam have risen by $200–$300 per FEU in recent weeks. Some major carriers are now planning rate increases of up to $1,000 per container from mid-June onwards.
The rate rebound appears to be rooted in a series of operational shifts by shipping lines. Larger vessels previously deployed on the India-Europe route have been redeployed to transpacific lanes, which are currently experiencing red-hot demand. This reshuffling has left Indian exporters with reduced capacity options and limited vessel choices, particularly as some services, such as CMA CGM’s EPIC loop, are announcing void calls.
In addition, inland depots in southern India have begun to feel the effects of patchy equipment availability, with forwarders citing inconsistent access to empty containers. While not a full-blown shortage, these localised equipment constraints vary by carrier and equipment type and are contributing to booking uncertainty.
Spot rates for late June and early July sailings have already begun to rise in anticipation of these planned increases, suggesting that market resistance may be limited. With rate levels in flux and service reliability under pressure, shippers will need to remain agile and proactive in securing capacity.
Logicall helps you stay ahead of volatile shipping trends.
Get in touch with our team to discuss routing alternatives, contract strategies, and how to minimise the impact of current rate hikes on your India-Europe shipments.