New Delhi: Global container have jumped 130 per cent since February 2026 as rising tensions in West Asia disrupt shipping routes and increase transportation costs, according to a Jefferies report.
The sharp increase comes as India’s export-import trade continues to expand, raising concerns over higher shipping expenses for businesses.
Container Shipping Rates More Than Double
According to Jefferies, global container freight rates increased from approximately $2,000–2,500 in February 2026 to around $4,000–4,500 in October. Shipping costs had declined throughout much of 2025 and early 2026 after recovering during 2024. However, renewed geopolitical tensions in the Middle East have pushed freight rates higher again.
Suez Canal Shipping Routes Under Watch
Jefferies highlighted the possible return of shipping companies to the Suez Canal as an important development. have created uncertainty around international shipping routes. Any change in vessel movements through the Suez Canal could influence global container freight rates and transportation costs.
India’s Export-Import Trade Grows 23%
Despite rising shipping expenses, India’s container-based export-import trade recorded strong growth in September 2026. According to the report, overall trade value increased 23 per cent year-on-year, supported by 22 per cent growth in exports and 23 per cent growth in imports. Exports to the United States surged 48 per cent, while shipments to the UAE and Saudi Arabia declined between 12 and 15 per cent.
Major Indian Ports Record Higher Cargo Volumes
Cargo volumes at India’s major ports increased 13 per cent year-on-year in September. However, non-major ports recorded a marginal 1 per cent decline. Among non-major ports, Gujarat registered 3 per cent growth, while Maharashtra and Tamil Nadu reported increases of 6–7 per cent. Ports along India’s eastern coast witnessed a sharper decline in cargo movement.
What Higher Freight Rates Mean For Trade
Elevated shipping costs could increase expenses for Indian exporters and importers. However, Jefferies’ findings do not establish that rising freight rates have already slowed India’s trade growth. Future shipping costs will depend significantly on geopolitical developments and the reopening of important maritime routes.