The wave of surcharges – usually accompanying an unbalanced supply-demand environment – continues on India-US trades.
The latest pounding comes from Mediterranean Shipping Co. (MSC) in the form of surcharges for overweight standard containers moving to the US East/West/Gulf Coasts and San Juan, Puerto Rico.
The Geneva-based carrier has announced a levy of US$300 per 20-foot container or cargo weighing over 18 metric tonnes.
“This will be applicable for containers handed over to MSC’s custody effective 10 August,” MSC said in a customer advisory.
Many carriers had already begun charging this kind of levy on India-Europe trades.
The latest move follows carriers adding equipment imbalance and space guarantee surcharges for Indian bookings to the US, as demand spiked due to the traditional peak season and fewer sailings due to widespread schedule disruptions.
Ocean rates from India to the US east and west coasts have recently soared to the levels that rekindled memories of pandemic-linked highs seen in the first half of 2022.
India-US trade is seeing traction, thanks to the China-plus-one strategy increasingly adopted by global importers for their procurement from Asia.
The Indian apparel industry is particularly bullish about brightening global demand prospects after exports in these verticals reported an 11.8% year-over-year increase by value in July.
‘The growth in exports is largely attributed to the expanding share of Indian apparel in key markets such as the US, alongside increased exports to the EU-27 and the UK,” said Rakesh Mehra, chairman of the Confederation of Indian Textile Industry (CITI).
Mehra also noted: “The industry remains optimistic about export orders in the upcoming months, and we are poised to further leverage the concluded FTAs [free trade agreements] like the India-Australia ECTA and the India-UAE CEPA.”
The CITI chief went on to add: “The industry anticipates continued growth and is strategically positioning itself to capitalise on these opportunities, ensuring that India remains a key player in the global textiles and apparel market.”
