en.Wedoany.com Reported - Container freight rates from India to the Persian Gulf have fallen significantly from their peak since the conflict erupted in February, currently down as much as 40% from the average level two weeks ago.
Industry data shows that on routes from Nhava Sheva (JNPA) and Mundra to Jebel Ali (UAE), current cargo booking prices are around $2,100 for a 20-foot container and $3,200 for a 40-foot container, a significant decline from the previous $3,500 and $4,800. Additionally, rates to other destinations in the Persian Gulf have also dropped sharply. For example, rates from Nhava Sheva and Mundra to Dammam (Saudi Arabia) have fallen from $5,700 for a 20-foot container and $6,700 for a 40-foot container to $4,700 and $5,700, respectively.
Sources believe that the influx of capacity from regional shipping companies seeking to capitalize on supply chain disruptions has improved the supply-demand fundamentals of this war-disrupted corridor. CULines launched two new shuttle services connecting China and India to the Middle East at the end of April, deploying four vessels on one independent loop, including the 10,000 TEU "Express Berlin" taken over from the downsized SeaLead.
The rate correction is also driven by a slowdown in cargo flows toward the Middle East, as mainline operators have been able to move most containers diverted to Indian ports and clear the backlog of Indian export boxes.
Pushpank Kaushik, CEO and Head of Business Development for the Indian subcontinent, Middle East, and Southeast Asia at Hyderabad-based diversified maritime group Jassper Shipping, told Loadstar: "The correction in India-Middle East ocean freight rates indicates that the market is gradually stabilizing after a period of disruption and uncertainty. While rates have softened, the market has not yet fully returned to normal, as fuel costs, insurance premiums, and regional geopolitical developments continue to impact shipping economics."
Meanwhile, Maersk has announced a series of trade relief measures for the Middle East, in the form of extended free storage periods—typically adding 15 days—for containers that consignees cannot clear in a timely manner at Salalah (Oman), Jeddah (Saudi Arabia), and Jebel Ali (UAE). The carrier is also offering preferential storage fees for transshipment containers at these Middle Eastern hubs.
Maersk informed customers: "As part of our contingency operations and to support customers during this period, we are implementing a temporary 'carrier detention' solution to facilitate the timely return of empty containers and provide greater flexibility to help you manage your supply chain. This means that customers with contractual free periods of less than 15 days will now automatically receive an extension of the free period."
The Middle East region has enhanced the importance of multimodal transport solutions for cargo movement within the region, with authorities actively establishing cross-border customs green channels or land bridge frameworks. A recent example is an agreement announced last month between the Sharjah Port Authority, customs, and Omani customs.
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