Reversal!From being hard to find a cabin to plummeting freight rates!Shipping costs plummeted by 40&
- Author:Maintenance network
- Source:Maintenance network
- Release Date:2026-06-09
Previously affected by the escalation of the situation around the Strait of Hormuz, regional supply chain disruptions, and market risk aversion, the container transportation market from India to the Gulf region experienced a rapid rise.However, with the continued deployment of new shipping capacity, the gradual digestion of backlogged cargo, and the resumption of operation of the regional logistics system, freight rates on relevant routes have seen a significant correction recently.
Some routes fell by about 40% from their high points
According to public market information, the current spot market freight rates from India's Nawasheva Port and Mundra Port to the United Arab Emirates' Jebel Ali Port have fallen back to approximately US$2,100/TEU and US$3,200/FEU.Compared with the stage highs of about US$3,500/TEU and US$4,800/FEU two weeks ago, the maximum drop is close to 40%.In addition to the UAE market, freight rates from India to major Gulf ports such as Dammam Port in Saudi Arabia have also retreated simultaneously, indicating that the previous increase in freight rates caused by the regional situation is gradually fading.
New shipping capacity returns to the market Industry insiders generally believe that this round of freight rate declines is primarily related to the rapid replenishment of shipping capacity.From March to April this year, due to rising shipping risks around the Strait of Hormuz, many international liner companies adjusted their service networks, and some routes suspended orders or implemented temporary restrictions, resulting in tight space in the Gulf region.As market freight rates rise rapidly, regional shipping companies have begun to increase shipping capacity.Public information shows that China United Shipping launched a new route service connecting China, India and the Middle East at the end of April, and invested capacity resources including 10,000-box container ships to participate in operations to meet market demand.Industry analysts believe that after the concentrated release of new shipping capacity, the market supply and demand relationship gradually improved, and the tight space situation that occurred in the early stage was alleviated, which directly promoted the drop in freight rates.
The backlog of goods is gradually relieved. At the same time, the digestion of the previous backlog of goods is also promoting the market to restore balance.Since March this year, due to the situation in the Strait of Hormuz, some goods have been forced to be rerouted to alternative ports such as Oman and Saudi Arabia, putting the regional logistics chain under great pressure.As shipping companies gradually resume their operation rhythm after network adjustment, a large number of backlogged goods are gradually completed for transshipment and delivery, booking pressure at major export ports in India has dropped significantly, and market tension has eased.The relevant person in charge of Jasper Shipping, an Indian logistics company, recently stated that the correction in freight rates on the route from India to the Middle East reflects that the market is gradually returning to stability from the previous fluctuations, but the overall operating environment still remains uncertain.
Maersk continues to roll out temporary support measures
It is worth noting that despite the market recovery, international liner companies are still taking temporary response measures to operational risks in the Middle East.According to multiple customer announcements issued by Maersk on March 25, March 27, April 17, and May 20, 2026 respectively, the company has implemented temporary free storage and extended container period policies for the Port of Salalah in Oman, the Port of Jeddah in Saudi Arabia, and the Port of Jebel Ali in the United Arab Emirates.The announcement shows that eligible goods can receive a free container use period of up to 15 days. Some customers whose original contracts stipulate that the free period is less than 15 days will automatically be extended.At the same time, Maersk has also launched some warehousing and container extension discount plans to alleviate the supply chain pressure faced by customers during special periods.In addition, Port Technology reported on June 4, 2026 that Maersk is still continuing to implement relevant Middle East emergency support measures to improve empty container turnover efficiency and ensure supply chain continuity.
Gulf countries accelerate regional logistics connectivity
In addition to short-term market changes, the construction of logistics infrastructure in the Middle East is also continuing to advance.In recent years, Gulf countries such as the United Arab Emirates, Saudi Arabia, and Oman have continued to promote the construction of ports, land bridges, and cross-border logistics networks, hoping to improve the resilience of regional supply chains and reduce reliance on a single maritime channel.Public information shows that in May this year, the Sharjah Port and Customs Authority of the United Arab Emirates and Oman Customs signed a cooperation agreement. The two parties plan to strengthen cross-border logistics coordination, promote customs facilitation and logistics interconnection, and provide more alternative transportation solutions for regional trade.
Industry observation
Judging from the current situation, the route from India to the Gulf region has gradually shaken off the extreme fluctuations in the previous period, and freight rates are returning to the balance between supply and demand.However, the Strait of Hormuz remains one of the world's most important energy and trade passages.Fuel prices, war risk surcharges, insurance costs and changes in the regional security situation may still have an impact on the future market.For cargo owners and logistics companies, at the current stage, they should pay more attention to route stability, shipping schedule reliability and changes in surcharge policies, not just freight rates themselves.In the context of geopolitical risks that have not yet been completely eliminated, establishing a multi-port and multi-channel supply chain layout is still an important option to reduce logistics risks.
Some routes fell by about 40% from their high points
According to public market information, the current spot market freight rates from India's Nawasheva Port and Mundra Port to the United Arab Emirates' Jebel Ali Port have fallen back to approximately US$2,100/TEU and US$3,200/FEU.Compared with the stage highs of about US$3,500/TEU and US$4,800/FEU two weeks ago, the maximum drop is close to 40%.In addition to the UAE market, freight rates from India to major Gulf ports such as Dammam Port in Saudi Arabia have also retreated simultaneously, indicating that the previous increase in freight rates caused by the regional situation is gradually fading.
New shipping capacity returns to the market Industry insiders generally believe that this round of freight rate declines is primarily related to the rapid replenishment of shipping capacity.From March to April this year, due to rising shipping risks around the Strait of Hormuz, many international liner companies adjusted their service networks, and some routes suspended orders or implemented temporary restrictions, resulting in tight space in the Gulf region.As market freight rates rise rapidly, regional shipping companies have begun to increase shipping capacity.Public information shows that China United Shipping launched a new route service connecting China, India and the Middle East at the end of April, and invested capacity resources including 10,000-box container ships to participate in operations to meet market demand.Industry analysts believe that after the concentrated release of new shipping capacity, the market supply and demand relationship gradually improved, and the tight space situation that occurred in the early stage was alleviated, which directly promoted the drop in freight rates.
The backlog of goods is gradually relieved. At the same time, the digestion of the previous backlog of goods is also promoting the market to restore balance.Since March this year, due to the situation in the Strait of Hormuz, some goods have been forced to be rerouted to alternative ports such as Oman and Saudi Arabia, putting the regional logistics chain under great pressure.As shipping companies gradually resume their operation rhythm after network adjustment, a large number of backlogged goods are gradually completed for transshipment and delivery, booking pressure at major export ports in India has dropped significantly, and market tension has eased.The relevant person in charge of Jasper Shipping, an Indian logistics company, recently stated that the correction in freight rates on the route from India to the Middle East reflects that the market is gradually returning to stability from the previous fluctuations, but the overall operating environment still remains uncertain.
Maersk continues to roll out temporary support measures
It is worth noting that despite the market recovery, international liner companies are still taking temporary response measures to operational risks in the Middle East.According to multiple customer announcements issued by Maersk on March 25, March 27, April 17, and May 20, 2026 respectively, the company has implemented temporary free storage and extended container period policies for the Port of Salalah in Oman, the Port of Jeddah in Saudi Arabia, and the Port of Jebel Ali in the United Arab Emirates.The announcement shows that eligible goods can receive a free container use period of up to 15 days. Some customers whose original contracts stipulate that the free period is less than 15 days will automatically be extended.At the same time, Maersk has also launched some warehousing and container extension discount plans to alleviate the supply chain pressure faced by customers during special periods.In addition, Port Technology reported on June 4, 2026 that Maersk is still continuing to implement relevant Middle East emergency support measures to improve empty container turnover efficiency and ensure supply chain continuity.
Gulf countries accelerate regional logistics connectivity
In addition to short-term market changes, the construction of logistics infrastructure in the Middle East is also continuing to advance.In recent years, Gulf countries such as the United Arab Emirates, Saudi Arabia, and Oman have continued to promote the construction of ports, land bridges, and cross-border logistics networks, hoping to improve the resilience of regional supply chains and reduce reliance on a single maritime channel.Public information shows that in May this year, the Sharjah Port and Customs Authority of the United Arab Emirates and Oman Customs signed a cooperation agreement. The two parties plan to strengthen cross-border logistics coordination, promote customs facilitation and logistics interconnection, and provide more alternative transportation solutions for regional trade.
Industry observation
Judging from the current situation, the route from India to the Gulf region has gradually shaken off the extreme fluctuations in the previous period, and freight rates are returning to the balance between supply and demand.However, the Strait of Hormuz remains one of the world's most important energy and trade passages.Fuel prices, war risk surcharges, insurance costs and changes in the regional security situation may still have an impact on the future market.For cargo owners and logistics companies, at the current stage, they should pay more attention to route stability, shipping schedule reliability and changes in surcharge policies, not just freight rates themselves.In the context of geopolitical risks that have not yet been completely eliminated, establishing a multi-port and multi-channel supply chain layout is still an important option to reduce logistics risks.