Indian exporters brace for more price hikes as normalcy evades Red Sea
Shipping major MSC in a client advisory announced that it will implement a contingency surcharge of $1,500 per container on all shipments from the Indian sub-continent to Europe and Black Sea destinations. CMA CGM announced a similar Red Sea surcharge of $1,575 for 20-foot dry containers and up to $3,000 for reefer containers and special equipment. Other major shipping lines too have announced such surcharges.
Exporters say that these charges are in addition to an escalation in the base charges. “Given the increasing involvement of countries like USA and Iran in the Red Sea, the situation is likely to escalate further, which the freight companies are looking to exploit. They have started to impose various charges in addition to the increasing base price.
These charges are now higher by two to three times, during a time in which exports are being given a firm push by the government," said Khalid Khan, board member of the Federation of Indian Export Organisations (FIEO).
The situation in the Red Sea flared up again after Houthi militia attacked a Maersk container vessel. The company temporarily suspended all cargo movement through the Red Sea, rerouting them around the Cape of Good Hope. “Following the 30 December incident involving our vessel, Maersk Hangzhou, we have decided to pause all transits through the Red Sea / Gulf of Aden until further notice...
