Ocean freight rates for shipments from India to the US East Coast have surged to a 20-month high. This increase is primarily attributed to a substantial reduction in available shipping capacity on this trade lane. A key factor in this capacity crunch is MSC's decision to discontinue its Indus Express service. Furthermore, other carriers operating on the route have implemented six blank sailings, further exacerbating the space shortage.
For freight forwarders and shippers, this development signifies increased shipping costs and potential delays for cargo moving from India to the US East Coast. The withdrawal of a dedicated service like MSC's Indus Express means fewer options for booking, while blank sailings introduce uncertainty into supply chain planning. Forwarders should anticipate higher spot rates and advise clients to book well in advance, exploring alternative routing options or considering premium services if time-sensitive cargo is involved. The reduced capacity could also lead to equipment shortages at origin ports in India.
