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Maersk Line raises India-US freight rates as export volumes decline
DANISH shipping giant, Maersk Line introduced a freight rate hike of US$300 per TEU and $400 per FEU for containers transported from India to the US on January 1.
Other shipping lines are expected to follow suit to offset losses due to lower export cargo volumes, reported The Hindu Business Line.
Export volumes from India to the US declined after the Christmas peak season that lasts from August to October so that products are available in the US markets in time for Christmas and New Year.
Sources said export volumes during November and December dropped 20-30 per cent, forcing carriers to increase freight rates.
Prior to the freight rate increase, the rate to ship a 20-foot container from Chennai to a US east coast port was $1,000, which used to be 20 per cent higher three to four months ago, according to one source.
Maersk Line managing director Steve Felder said in an email in the third quarter of that export volumes to North America rose by eight per cent year on year, indicating India's strengthening trade ties with the region. The US is one of the biggest export markets for India.
Other shipping lines are expected to follow suit to offset losses due to lower export cargo volumes, reported The Hindu Business Line.
Export volumes from India to the US declined after the Christmas peak season that lasts from August to October so that products are available in the US markets in time for Christmas and New Year.
Sources said export volumes during November and December dropped 20-30 per cent, forcing carriers to increase freight rates.
Prior to the freight rate increase, the rate to ship a 20-foot container from Chennai to a US east coast port was $1,000, which used to be 20 per cent higher three to four months ago, according to one source.
Maersk Line managing director Steve Felder said in an email in the third quarter of that export volumes to North America rose by eight per cent year on year, indicating India's strengthening trade ties with the region. The US is one of the biggest export markets for India.
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