A steadier capacity situation on the India-US East Coast trade in November has intensified pricing pressure on carriers, reports London's S&P Global. Spot rates have fallen to their lowest levels since February as fewer blank sailings left the market oversupplied.
With the exception of two voided calls by CMA CGM's Indamex loop, sailings from Nhava Sheva and Mundra have remained on schedule across services operated by Hapag-Lloyd, MSC and Maersk.
Platts put India-USEC spot rates at US$1,450 per FEU on 18 November, down nine per cent week-on-week. Forwarders reported quotes as low as $1,200 to $1,300 per FEU, a drop of $200 to $300 from late October.
Sources said overcapacity, more than weak bookings, is driving carriers to undercut each other. Capacity utilisation has slipped to 60-70 per cent from the usual 80-90 per cent, prompting carriers to consider cost-control measures.
Industry players are hoping for a rebound in volumes from trade talks between New Delhi and Washington. However, a possible return to the Red Sea and Suez Canal could create fresh capacity challenges.
Indian exports fell sharply in October, down nearly 12 per cent by value year-on-year, with shipments to the US off seven per cent. Container volumes to the US East Coast dropped to just under 70,000 TEU, compared with 87,970 TEU in September, according to PIERS data.
https://www.shippingazette.com/news?news_id=9251100000669
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