Despite demand challenges, major container lines will implement rate increases on the India-US trade route
The dominant carriers in the India-US trade lane, MSC, CMA CGM, and Hapag-Lloyd, will implement a $500 per TEU general rate increase (GRI) beginning March 29, 2023. Despite facing demand challenges and struggles to fill vessel capacity, the carriers claim the rate increase is necessary to maintain the reliability and efficiency of their services. However, industry sources believe that this is a tactical move to halt rate erosion, as there is no way to reverse the current trend. CMA CGM will also impose a separate GRI of $540 per 20-foot container and $600 per 40-foot container on shipments from the Indian subcontinent to the West Coast of the United States beginning April 15, 2023. Hapag-Lloyd is aiming for a GRI of $450 per 20-foot container and $500 per 40-foot container form the Middle East to North America.
Source of information – Container news
There are several factors to this increase like container shortage, port congestion, and higher fuel costs.