State-run Shipping Corporation of India (SCI) today announced a freight rate hike of up to USD 500 for 40-feet containers on the India-Europe sector.
"We are facing pressures on account of fuel price hike, the rupee movement and reduction in traffic due to which we are proposing the hikes to make operations feasible," a senior SCI official told PTI.
The hikes, for traffic from India to Europe, the Mediterranean, the Black Sea and the Red Sea trade route, are applicable from December 1, he said.
The official said currently the rate for a standard 20 ft container is hovering in the USD 500-525 range, which was at USD 1,200 a year ago. It reached a trough at USD 450 four months ago and has been slowly climbing since. SCI is proposing to hike it by USD 250, he added.
For a 40-feet container, the rate is in the region of USD 950 at present and it is proposed to be hiked by USD 500, he said.
The SCI official, however, added not all hikes translate into actual jump in realisations as final prices are a function of market forces.