Freight rates on India-Europe trades have fallen to their lowest levels since late 2023 as overcapacity and seasonal slack weigh on carriers, reports New York's Journal of Commerce.

Forwarders said average freight-all-kinds rates from West India to North Europe are now US$800 to $900 per FEU, down from $1,000 to $1,100 a month ago. Some Asian carriers are quoting even lower to secure cargo.

A European liner sales executive described the market as "pathetic" but noted a modest rate hike plan for December. Forwarders expect no recovery until January, with excess capacity likely to hinder increases in early 2026.

Supal Shah, CEO of Sarjak Container Lines, said pricing has swung sharply in recent years. Rates surged in early 2024 when carriers rerouted vessels around the Cape of Good Hope to avoid Red Sea attacks, but weakened again in late 2025 as capacity improved.

Mr Shah advised exporters and freight providers to balance long-term contracts with flexible spot strategies to protect margins.

CMA CGM is set to withdraw extra India-Europe capacity added last month via Tangier on its Indamex loop, schedules show. Industry data put container volumes at 770,000 TEUs from January to September.

Despite US tariff pressures, India's merchandise exports rose nearly seven per cent year on year in September, supported by diversification. The Federation of Indian Export Organizations said untapped potential exists in Latin America, Africa and Southeast Asia.