Global freight rates soar 130% since February
What's the story
Global container freight rates have skyrocketed by a staggering 130% since February 2026, largely due to the ongoing tensions in the Middle East. The spike marks a sharp departure from a long period of declining shipping costs. As per a Jefferies report, container rates have jumped from $2,000-2,500 in February 2026 to around $4,000-4,500 in October.
Trade resilience
India's export-import trade continues to expand
Despite the surge in global freight rates, India's container-based export-import trade has continued to expand.
The value of this trade grew by 23% year-on-year in September 2026, driven by a 22% increase in exports and a similar rise in imports.
However, not all destinations saw growth. Exports to the UAE and Saudi Arabia fell by 12-15% year-on-year.
Port performance
Port activity shows mixed trends
Port activity across India showed a mixed bag in September 2026. Cargo volumes at major ports rose by 13% year-on-year, while non-major ports saw a slight decline of 1%.
Among non-major ports, Gujarat recorded a 3% rise in volumes compared to September 2025.
However, major and non-major ports on India's eastern coast witnessed a sharp decline during the month.
Route changes
Potential return of shipping lines to Suez Canal
Jefferies flagged the possible return of shipping lines to the Suez Canal, despite ongoing tensions in the Middle East, as an important development for the global freight market.
Any changes in shipping routes could influence freight rates, keeping businesses reliant on international cargo movement on their toes.