Industries across the portfolio, from Agriculture to Automotives have expressed grave concerns about drastically rising logistics cost. Taking a closer look at the next 6 weeks scenario, APSEZ officials have opined that challenges will continue to sustain. Spot freight rates have rocketed since the start of this fiscal year to $6000 for a forty feeter container as on July 25, as reported by Drewry’s World Container Index. The highest was noted during the COVID era in September 2021, when freight rates touched at $10,000 per 40’ container.
According to officials from Bajaj Auto, freight rates to Latin America and Africa destinations have doubled in the past 6 months and replenishment of empty containers has become a hectic task. Bajaj Auto exports to South Asia, Southeast Asia, Africa and Latin American markets and has reach into more than 100 countries. Higher import costs have dent the profits of tyre maker CEAT by 3 percentage points. The Shanghai Containerised Freight Index which covers freight rates from China to across the globe surged threefold to $4000 teus in June. It hooked at around $1000 per teu before the Red Sea Crisis began.