{"id":85548,"date":"2022-01-17T18:13:49","date_gmt":"2022-01-17T11:13:49","guid":{"rendered":"https:\/\/advantage.vn\/vi\/?p=85548"},"modified":"2022-08-20T15:15:28","modified_gmt":"2022-08-20T08:15:28","slug":"india-outlook-2022-freight-rates-box-prices-continue-to-rise","status":"publish","type":"post","link":"https:\/\/advantage.vn\/en\/india-outlook-2022-freight-rates-box-prices-continue-to-rise\/","title":{"rendered":"India Outlook 2022: Freight rates, box prices continue to rise"},"content":{"rendered":"

[Advantage Logistics<\/a><\/span>] Not a happy start to the New Year for exporters and freight forwarders in India and Asia as the volatility of spot rates and contract rates continues to spill over in 2022.<\/strong><\/p>\n

Container prices have risen at most of the major ports in India by at least 12% in January itself because of the Covid-19 Omicron variant that disrupted the global supply chains.<\/p>\n

However, market watchers are not putting the burden of rising box rates solely on the coronavirus variant but also on the changing purchasing patterns, the Chinese New Year that is around the corner, and the restocking of supplies that followed due to the rising number of Covid-19 cases in China.<\/p>\n

\"India<\/p>\n

Similarly, the average price of a 40-ft dry container at Chennai rose by 6.6% from US$4,780 in December 2021 to US$5,100 in January 2022.<\/p>\n

Bhavik Mota, Maersk’s director of ocean management in West & Central Asia, told Container News that the dynamics of the global trade are based on the dynamics of the pandemic.<\/p>\n

\u201cWe do not want to guess\u202fwhen\u202fand how\u202fthe situation will change.\u202fThe current Omicron outbreak is a classic example of the events turning all the time. Without it, we may have been moving faster towards normalization. It is tough to predict\u202fas the situation\u202fin different ports\u202fchanges\u202fconstantly;\u202fsome\u202ffor\u202fthe better, some\u202ffor\u202fthe worse.\u202fSometimes we\u202feven\u202fsee the problem move from one port to another\u202fas ships are being redirected\u202fto a port with\u202fa\u202fshort waiting time,\u201d commented Bhavik Mota.<\/p>\n

\"India<\/p>\n

The turnaround time of a container at the major ports in China has increased due to the rising number of cases along with the suspension of trucking activities in most parts of the country. Additionally, there is severe congestion at ports in the United States and the United Kingdom.<\/p>\n

Mota said that the current level of freight rates is a reflection or consequence of the disruptions in the market that are partially driven by the exceptional demand situation in the US and Europe.<\/p>\n

\u201cThere are bottlenecks throughout the entire supply chain \u2013 congestion at ports, unavailability of trucks and their drivers, congestion at warehouses, etc. Globally, the effective vessel and equipment capacity is constrained at an estimated 15% due to landside disruptions leading to vessels and containers waiting outside ports for longer, increased duration of operations, and increased dwell time for containers arising out of congestion at warehouses. This is at a time when the idle fleet capacity is at a historic low\u201d, noted Mota, adding that the changing purchasing patterns to online sales are also causing disruptions in supply chains.<\/p>\n

\"freight<\/p>\n

India has witnessed an increase in exports of 33% to US$7.63 billion during 1-7 January owing to fantastic sales of engineering goods, petroleum, gems, and jewelry.<\/p>\n

Indian exporters of basmati rice, tea, and leather goods have raised concerns over the rising prices. Tea exporters in India feel the freight rates may not soften anytime soon. In the last 15 days, the freight rates of exporting tea to places like Iran and Kazakhstan have shot up by US$500 to US$1,000 per box.<\/p>\n

The exporters feel that the soaring rates will trickle down to consumers eventually if not controlled. Prices of air conditioners and refrigerators have already risen due to the high cost of raw materials and ever-soaring freight rates. Consumer Electronics and Appliances Manufacturers Association (CEAMA) has said that the industry may hike the prices of home electronics and appliances like washing machines by 5% to 7%. Panasonic, LG, and Haier have already revised their prices upwards.<\/p>\n

\"Freight<\/p>\n

With several states implementing night and weekend curfew, there has been a production loss of up to 25%. Prices of metals and plastics rose by 70%. Semi-conductors that are used in making a product have also become costlier.<\/p>\n

Source: Container-News<\/strong><\/p>\n

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