Freight rates in India US Canada sector to go up?

Container lines seem to be firm on going ahead with a mild rate increase in freight rates for shipments from India to the United States and Canada even as they continue to face demand challenges filling available vessel capacity. The India-US trade lane is dominated leading container operators like MSC, CMA CGM and Hapag-Lloyd, according to Marine Media reports.

These carriers have now synchronised the implementation date for a 500 US dollars per TEU hike, after publishing varied notices. This General Rate Increase will take effect from March 29.

The “general rate increase (GRI) from India to the US and San Juan, Puerto Rico, effective March 23 handover, has now been postponed to March 29 handover,” MSC Agency (India) said in a customer advisory. The carrier also said the GRI is necessary “to maintain the high level of reliability and efficiency of our services to meet the needs of our customers.”

CMA CGM Agencies (India) said the GRI will apply to Indian cargo moving to the US East Coast, US Gulf Coast and Canada. “Rate restoration initiative (RRI) will apply to tariff or service contract rates on all cargo moving under the scope of this tariff,” the French liner said.

Hapag-Lloyd is seeking a GRI of 450 US dollars 20-foot container and 500 US dollars per 40-foot box.The German carrier said, “A general rate increase (GRI)/general rate adjustment (GRA) from the Middle East to North America for cargo transported in 20’ and 40’ dry, reefer and special containers, including high cube equipment, is coming up.” The company also noted, “This GRI/GRA is applicable to all containers gated in full from 29 March and is valid until further notice.”

In addition, CMA CGM has put out a separate trade notice announcing rate increases for all shipments from the Indian subcontinent to the US West Coast. This GRI will be 540 US dollars per 20-foot container and 600 US dollars per 40-foot container.

“ A general rate increase (GRI) will apply to all tariff or service contract rates on all cargo rates for all commodities moving under the scope of tariff, with effective from April 15, 2023” unless otherwise specified  CMA CGM Agencies (India) said.