New Delhi/Alive News: Global container freight rates have surged by around 130% since February 2026 amid renewed tensions in West Asia, raising concerns about rising shipping costs and their impact on international trade, according to a report by brokerage firm Jefferies.
After declining through much of 2025 and early 2026, freight rates have risen sharply in recent months. According to the report, global container shipping rates increased from around $2,000–$2,500 in February to approximately $4,000–$4,500 in October 2026.
The possible return of shipping companies to the Suez Canal route, despite continuing regional tensions, is another key factor for the market. Changes in shipping routes could affect transit times, freight costs and the movement of goods along major international trade corridors.
India’s Container Trade Continues to Grow
Despite higher shipping costs, India’s container-based export-import trade recorded strong growth in September 2026. Jefferies reported that the value of India’s containerisable trade increased by 23% year-on-year, supported by a 22% rise in exports and a 23% increase in imports.
Exports to the United States rose by 48% during the month. However, shipments to the United Arab Emirates (UAE) and Saudi Arabia declined by 12–15%, reflecting different trade trends across India’s major markets.
The figures indicate that India’s container trade continued to expand despite rising global freight rates. However, the data do not establish whether higher shipping costs have already affected trade growth.
Major Port Cargo Volumes Rise 13%
India’s port traffic showed mixed trends in September. Cargo volumes at major ports increased by 13% year-on-year, while non-major ports recorded a 1% decline.
Among non-major ports, cargo volumes at Gujarat ports grew by 3%. Ports in Maharashtra and Tamil Nadu recorded growth of 6–7%. In contrast, major and non-major ports on India’s eastern coast experienced a sharp decline in cargo volumes, according to the report.
Suez Canal Route Remains in Focus
The potential resumption of shipping through the Suez Canal remains an important factor for global freight markets. A return to the route could change shipping distances and transit times, potentially affecting freight rates and delivery schedules.
However, the impact will depend on the security situation in West Asia and the decisions made by shipping companies.
The sharp rise in container freight rates highlights the vulnerability of global supply chains to geopolitical tensions. Businesses that depend on international shipping will be watching freight costs, shipping routes and trade flows closely in the coming months.
