Asia to US Ocean Freight Rates Are Up 11% as India Rates Climb 14%

Ocean freight rates from Asia and India to North America have been on an upward trend since early August, putting pressure on freight forwarders preparing customer quotes.

According to the Starboard Freight Index, rates from Asia to the US increased by 11%, while rates from Asia to Canada are up 9%. Additionally, rates from India to the US have increased by 14%, and India to Canada by 13%.

What's exactly driving the increases?

There are several factors contributing to the rise in shipping costs, specifically on the India-US routes:

• Political disruptions: Geopolitical tensions are causing vessels to reroute, resulting in increased travel and operating time
• Port congestion: Congestion at major South Asian ports, including Nhava Sheva and Mundra, which can delay shipments and affect schedules.
• Reduced vessel capacity: Due to the longer travel periods and delays, the number of vessels available decreases.
• Carrier surcharges: Peak season and emergency fuel surcharges have become an additional burden on freight shipping.

These pressures can lead to increased unpredictability of rates and higher costs for freight forwarders shipping to North America.

What this implies for freight forwarders

Rates are increasing and space is tight. Try to book in advance, and have a multi carrier strategy to ensure loadings. If you are booking on spot; provide your clients with blend rates so as to manage volatility better

The Starboard Freight Index enables freight forwarders to benchmark ocean FCL rates on more than 2,000 trade routes and compare quotes with market medians. It's free to use and updated daily.