Sea cargo rates on all key exchange paths to and from India have seen twofold digit upward development toward the beginning of March, mirroring the impacts of huge scope vessel limit decreases and hardware deficiencies because of interruptions identified with the coronavirus sickness 2019 (COVID-19).
Average westbound spot rates for cargo shipped from the ports of Jawaharlal Nehru Port Trust (JNPT) and Mundra to Felixstowe in the United Kingdom have risen over 20 percent to $1,100 per TEU and $1,500 per FEU, as carriers imposed fresh general rate increases (GRIs), according to JOC market research.Leading the rate push, French liner CMA CGM revised its freight all kinds (FAK) rates for trade from India’s northwestern region to Northern Europe and the Western Mediterranean at $1,250 per TEU and $1,500 per FEU, effective March 1.
Eastward rates from Europe to India have additionally climbed strongly, hitting $1,050 per TEU and $1,350 per FEU from Felixstowe to JNPT/Mundra, contrasted and $750 and $1,000 toward the finish of February. On the Mediterranean-India exchange, bearers are for the most part looking for $550 per TEU and $850 per FEU for payload moving from Genoa, Italy, to JNPT/Mundra, up from $425 and $650.
Major impact on intra-Asia trades from COVID-19
At the same time, the coronavirus has had a major impact on the usually lowest-priced intra-Asia trade lanes, which typically meet much of the equipment repositioning for the region. From JNPT/Mundra to Shanghai, average spot rates have increased to $150 per TEU and $200 per FEU from $100 and $150, respectively, around mid-February. Rate levels have also surged on the return, to about $650 per TEU and $850 per FEU from $400 and $500 two weeks ago.
JNPT and Mundra together handle approximately 60 percent of India’s containerized trade.
According to provisional port data collected by JOC.com, in the wake of several blank sailings on India-Far East trades, JNPT had lower inbound volume in February — at 213,000 TEU out of a total of 416,500 TEU, or 51 percent. That compares with 225,100 TEU out of 426,100 TEU in January, or 53 percent. Import figures for Mundra were not immediately available.
Moreover the drivers from North India are running from Port area to their villages causing operational issue and inefficiency.
All vessels at Kolkata port trust are also being quarantined for 14 days to make sure no vessel manpower is being infected