FOLLOWING a period of stable rates in the latter half of April, container lines operating on the India-US trade route are now encountering a significant decline in spot pricing for upcoming May voyages, attributed to the commencement of shipper bookings on the new Ocean Network Express (ONE) service, reports New York's Journal of Commerce.
The debut of ONE's West India-North America Express (WIN) service, scheduled to commence from Nhava Sheva with a call on May 12 by the vessel ONE Modern, marks the beginning of a nine-vessel weekly loop.
This service, which also includes slot charter space by HMM, encompasses three ports of call on the Indian leg, including Hazira and Mundra.
Data sourced from local freight forwarder channels indicates a notable decrease in average spot rates from Nhava Sheva/Mundra to the US east coast (New York) for sailings from the second week of May.
Carriers' reported port-to-port pricing includes Hapag-Lloyd at US$3,013 per TEU and $3,513 per FEU, CMA CGM at $3,202 per TEU and $3,557 per FEU, and Maersk at $2,109 per TEU and $2,649 per FEU.
Platts, a sister company under S&P Global, noted a decline in India-USEC spot rates to $3,612 per FEU as of May 2, down four per cent from the previous week.
A Mumbai forwarder, speaking anonymously, attributed the sharp rate drops to a capacity surplus rather than a decrease in demand.
Major players like Hapag-Lloyd and CMA CGM have recognised the mounting competitive pressures in the market and have strategically adjusted their pricing tactics accordingly.
SeaNews Turkey
The debut of ONE's West India-North America Express (WIN) service, scheduled to commence from Nhava Sheva with a call on May 12 by the vessel ONE Modern, marks the beginning of a nine-vessel weekly loop.
This service, which also includes slot charter space by HMM, encompasses three ports of call on the Indian leg, including Hazira and Mundra.
Data sourced from local freight forwarder channels indicates a notable decrease in average spot rates from Nhava Sheva/Mundra to the US east coast (New York) for sailings from the second week of May.
Carriers' reported port-to-port pricing includes Hapag-Lloyd at US$3,013 per TEU and $3,513 per FEU, CMA CGM at $3,202 per TEU and $3,557 per FEU, and Maersk at $2,109 per TEU and $2,649 per FEU.
Platts, a sister company under S&P Global, noted a decline in India-USEC spot rates to $3,612 per FEU as of May 2, down four per cent from the previous week.
A Mumbai forwarder, speaking anonymously, attributed the sharp rate drops to a capacity surplus rather than a decrease in demand.
Major players like Hapag-Lloyd and CMA CGM have recognised the mounting competitive pressures in the market and have strategically adjusted their pricing tactics accordingly.
SeaNews Turkey
