Global container freight rates have surged by a staggering 130% since February 2026, primarily due to escalating tensions in the Middle East.
This sharp increase is raising significant concerns for India’s burgeoning export-import trade, which heavily relies on container shipping, according to a recent report by Jefferies.
After a period of decline in early 2025, when rates eased due to improved demand-supply balance, global freight costs have once again become a critical factor for businesses engaged in international trade. The report highlights that rates, which were around USD 2,000-2,500 in February 2026, have now climbed to approximately USD 4,000-4,500 by October 2026.
This spike comes at a time when India’s container-based export-import trade showed robust growth in September 2026, increasing by 23% year-on-year. Exports saw a 22% rise, and imports grew by 23%. Notably, exports to the United States jumped by 48%, while those to the UAE and Saudi Arabia saw a decline.
Jefferies emphasizes that the potential return of shipping lines to the Suez Canal, despite ongoing regional instability, remains a crucial factor to monitor. Changes in these vital shipping routes could significantly influence global freight rates and impact international cargo movement, directly affecting everyday consumers and businesses in India.