According to market data from local freight forwarding sources, average rates for bookings from Central/North China to India grew 20% to 40% this month over August levels.
For example, Shanghai-Nhava Sheva/Mundra rates have hit $500 per teu and $600 per feu, up from $425 and $450, respectively, three weeks ago. Carriers are said to be quoting $550/teu and $600/feu for Tianjin shipments to Nhava Sheva/Mundra, versus $425 and $450 through August.
Similarly, South China (Yantian)-West India rates have seen a 25% month-on-month increase, and now hover at $500 per teu and $550 per feu, data shows.
For trade between China and southern India (Chennai), rates have spiked to new highs on the import leg. Forwarders put September rates at $1,100 per teu and $1,200 per feu for loads from Shanghai to Chennai, and at $1,150 and $1,250, respectively, for Tianjin-Chennai bookings. Corresponding August rates on the same port pairs stood at $1,000 per teu and $1,100 per feu, and $1,050 per teu and $1,150 per feu.
Stronger import flows into India have encouraged both regional and deep sea carriers to open a flurry of intra-Asia connections in recent months, mostly out of the Chennai region.
The new network additions include a weekly joint loop by Sinotrans, TS Lines, SeaLead Shipping and SITC. Branded the Far East India Express (FIX1), the five-vessel connection had its first call at DP World Chennai this month – arguably a watershed moment for the terminal as it deals with heightened competition from nearby Adani Group-led emerging rivals, particularly Kattupalli port.
DP World Chennai said the FIX1, featuring fewer port calls, offered an eight-day shorter transit than other available connections between Chennai and China. It has a port rotation of Qingdao-Shanghai-Ningbo-Shekou-Chennai-Visakhapatnam-Port Klang-Shekou-Qingdao.
A Chennai terminal official told the market had a host of new players betting on the intra-Asia tradelane, adding: “Everyone wants to grab a slice of the Asian import pie.”
Corroborating the changing backhaul-headhaul trade dynamics, inbound volumes at Chennai port exceeded export loads between April and August, with combined Chennai imports at 347,795 teu and exports at 302,558 teu.
According to industry sources, manufacturing activity in and around Chennai has gathered pace, propelled by trade diversification revolving around the much-publicised China plus-one sourcing strategy of western importers. Rajesh Srinivasan, India country manager at freight forwarder Dimerco Express Group, said the government wants to lift manufacturing’s share of India’s GDP from around 17.7% currently to 25% by 2025.
