INDIA-Middle East trades seem to be another casualty of container lines prioritising more lucrative Asian trades that have room to absorb more capacity as cargo bookings continue to be unusually strong, reports New York's Journal of Commerce.
Loads to the Persian Gulf are historically dominated by non-vessel-operating common carriers (NVOs), with niche feeder lines or mainline operators (MLOs) allocating their substantial capacity, anecdotally 50 per cent, to NVOs. Notable Indian NVOs include Goodrich Maritime, Poseidon Shipping and Muskan Container Lines.
NVO sources noted that carriers active on the regional trade lane have pulled tonnage out of the short-haul market for redeployment to China-centric longer-distance services.
'Some liners are using ships, originally meant for Nhava Sheva-Jebel Ali routes, on other trades, which has created a significant gap in available capacity,' said a Mumbai-based NVO.
Due to the supply-demand imbalance, spot booking rates from West India to Jebel Ali in Dubai, a major transshipment hub for the west Asia region, have seen no less than three-to-four-fold gains in the last two weeks or so, data obtained by the Journal of Commerce shows.
Average NVO rates from Nhava Sheva to Jebel Ali now stand at $900 per TEU and $1,700 per FEU, with relative laden feeder slot prices pegged at $750 and $1,500. These compare with mid-June NVO quotes of $250 and $350, respectively, sources noted.
'There is no vessel space in July [on Jebel Ali sailings],' said Dharmendra Gangrade, head of logistics management at Indian diversified conglomerate Larsen & Toubro. 'Additionally, transit times via Abu Dhabi are surprisingly going up to 15 to 20 days.'
SeaNews Turkey
Loads to the Persian Gulf are historically dominated by non-vessel-operating common carriers (NVOs), with niche feeder lines or mainline operators (MLOs) allocating their substantial capacity, anecdotally 50 per cent, to NVOs. Notable Indian NVOs include Goodrich Maritime, Poseidon Shipping and Muskan Container Lines.
NVO sources noted that carriers active on the regional trade lane have pulled tonnage out of the short-haul market for redeployment to China-centric longer-distance services.
'Some liners are using ships, originally meant for Nhava Sheva-Jebel Ali routes, on other trades, which has created a significant gap in available capacity,' said a Mumbai-based NVO.
Due to the supply-demand imbalance, spot booking rates from West India to Jebel Ali in Dubai, a major transshipment hub for the west Asia region, have seen no less than three-to-four-fold gains in the last two weeks or so, data obtained by the Journal of Commerce shows.
Average NVO rates from Nhava Sheva to Jebel Ali now stand at $900 per TEU and $1,700 per FEU, with relative laden feeder slot prices pegged at $750 and $1,500. These compare with mid-June NVO quotes of $250 and $350, respectively, sources noted.
'There is no vessel space in July [on Jebel Ali sailings],' said Dharmendra Gangrade, head of logistics management at Indian diversified conglomerate Larsen & Toubro. 'Additionally, transit times via Abu Dhabi are surprisingly going up to 15 to 20 days.'
SeaNews Turkey
