Plunging rates beat India-US service
A brutal collapse in freight rates on the India-US East Coast trade route is forcing the Indus Express, launched just over a year ago, to shut down.
Eight ships of around 3,000 TEU capacity will be pulled out of the service run by Emirates Shipping, Evergreen, Gold Star Line, Shipping Corporation of India and OOCL.
No date has been set for the end of the service but the carriers are seeking slots elsewhere, in particular the Indamex that has a similar port rotation. Indamex is run by APL, CMA CGM and Hapag-Lloyd.
The Indus Express is the most recent addition to the India-US East Coast trade and was launched in May last year. Rates have almost halved on the trade route in the last two years, and planned rate increases and peak season surcharges have had little or no effect in arresting the downward spiral. The trade is dominated by the westbound textile and clothing export business.
Eight ships of around 3,000 TEU capacity will be pulled out of the service run by Emirates Shipping, Evergreen, Gold Star Line, Shipping Corporation of India and OOCL.
No date has been set for the end of the service but the carriers are seeking slots elsewhere, in particular the Indamex that has a similar port rotation. Indamex is run by APL, CMA CGM and Hapag-Lloyd.
The Indus Express is the most recent addition to the India-US East Coast trade and was launched in May last year. Rates have almost halved on the trade route in the last two years, and planned rate increases and peak season surcharges have had little or no effect in arresting the downward spiral. The trade is dominated by the westbound textile and clothing export business.