Container freight rates from China to India have substantially strengthened in the past few weeks, thanks to strong demand for vessel space by Indian importers, according to industry sources.
For example, spot rates from Shanghai to Nhava Sheva (JNPA) have surged 25% to 30% since end-May, after cooling for a while, sources said.
Carriers are booking cargo for the port pair at around $2,300 per teu and $2,400 per 40ft, from $1,800 and $1,900 a month ago.
Growing booking demand for India has sent Shanghai-Chennai rates up even steeper: for 20ft bookings, a near 50% gain in a month, to $1,800 per teu from $1,200: while for 40ft boxes, up to the same level from about $1,400, according to data.
India is a large consumer of goods imported from China, both for the industrial and household sectors. Seasonality is a factor for the current surge in demand and rate activity by carriers, sources believe, as imports typically gather pace ahead of the local festival season that begins in August/September.
Pushpank Kaushik, CEO and head of business development for Indian subcontinent, Middle East & SEA at Hyderabad-based Jassper Shipping, told The Loadstar: “While businesses may need to account for some market fluctuations, trade volumes between India and China remain strong.”
The elevated China-India rates come despite more capacity entering the tradelane, especially from CULines. The Chinese carrier began two new shuttle services connecting China and India to the Middle East in April, branded the CGX China-Middle East Express and CGS China-Khor Fakkan Express. The former, a standalone service, includes a call at Mundra in India.
Other regional carriers, like Interasia Lines, SITC, and Sinolines, have also boosted capacity on intra-Asia trades connecting to India to capitalise on soaring volumes out of China. Cosco, Wan Hai, RCL, Evergreen, and TS Lines are the predominant intra-Asia operators.
China is New Delhi’s largest trading partner, though the bilateral commerce pattern hugely favours Beijing. According to provisional official data, Indian imports from China in fiscal year 2025-26 were valued at some $132bn, up 16% year on year, compared with just some $20bn of trade in the reverse direction.
Meanwhile, CULines is rapidly expanding services beyond the mainstay intra-Asia market coverage in a bid to transform itself into a mainline operator. It recently established a subsidiary in Turkey to support intercontinental trunk and regional feeder services.
“Following the successful establishment of its CUL India, CUL West Asia (Dubai) and CUL Japan operations over the past year, it completes the layout of the company’s Europe-Asia-Africa regional service network,” it said.