en.Wedoany.com Reported - Indian exporters and freight forwarders are facing severe supply chain disruptions when shipping goods to Latin America, as shipping lines have significantly reduced capacity allocations at Indian ports.
According to market sources, in recent weeks, carriers have adjusted their tonnage strategies, prioritizing capacity for the Asian peak season, which started earlier than usual, leading to a sharp decline in slot allocations for Indian export cargo. A freight forwarder told The Loadstar that container shipping companies are holding back large volumes of cleared, ready-to-export cargo at loading ports, describing it as a severe transport crisis.
As a result, freight rates from India to major Latin American ports have surged significantly. Sources said that from Jawaharlal Nehru Port (JNPA) to Santos Port in Brazil, carriers are quoting $9,000 for a 40-foot container, while rates to Paranaguá Port stand at $8,500. Indian trade circles also report severe cargo backlogs, as shippers are unable to secure slots from carriers operating on this route.
Sources believe that the recovery in Indian export demand to Latin America is also driving cargo volume growth, with Brazil, Mexico, and Colombia being the main sourcing markets. Capacity on Asia-Latin America routes has traditionally been influenced by fluctuations in Chinese export trade, while India's export trade pace with Latin America has accelerated over the past few years, largely driven by automobile exports.
Available data shows that despite tariff impacts, India's merchandise exports to Latin America grew by 8% in the 2025-26 fiscal year. Similarly, according to the latest provisional government data, after a weak performance in the fiscal year ending March, India's overall merchandise export trade rebounded in the first two months of the 2026-27 fiscal year, with export value increasing by about 16% year-on-year. SC Ralhan, President of the Federation of Indian Export Organisations, stated that sustained strong demand from traditional and emerging markets reflects growing global confidence in Indian products and services, and the increasing presence of Indian exporters in different regions helps strengthen India's position in global trade while reducing dependence on a limited number of markets.
Market participants noted that with robust growth in Indian container export volumes, shippers now face an increased risk of supply-demand imbalance across various trade routes. A container industry analyst told The Loadstar that supply chain reliability and resilience are crucial for supporting trade expansion. Additionally, in recent months, yard congestion and customs clearance delays at Jawaharlal Nehru Port (JNPA) and Mundra Port have also plagued Indian importers and exporters.
