Container rates from India to West Africa rise

05-Dec-2024 12:08 PM

Container rates from India to West Africa rise
Container Freight Rates from India to West Africa:
Rate Increase: Container freight rates from India to West Africa saw a notable increase in November, primarily driven by the movement of large consignments of rice.
Destination-Specific Rates: For destinations like Cotonou, rates increased by 22% from October to reach $2,400 per TEU (Twenty-Foot Equivalent Unit).
General Range: Container freight rates to various West African destinations are now ranging between $3,600 and $4,000 per FEU (Forty-Foot Equivalent Unit).
Space Shortages: There have been reports of space shortages on smaller vessels due to the increased demand for shipping rice and other goods, contributing to the rise in rates.
Impact on Exporters: The rise in container rates has significantly impacted small and medium-sized exporters who rely on container ships for transportation. As a result, some exporters may consider shifting from container shipments to breakbulk shipments, which may be more cost-effective under the current circumstances.
Rice Export Outlook:
Rice Prices and Exports: Rice prices remain under pressure, but India’s rice exports are expected to rise significantly in 2024-25. Projections suggest an increase of 42.36%, with total exports potentially reaching 205 lakh metric tonnes.
Effect on Freight Rates: The surge in rice exports, coupled with the higher shipping demand, could keep pressure on container freight rates to West Africa, especially if more rice consignments are shipped via containers rather than breakbulk.