Container Freight Rates Surged Along India-Europe Trade Route

Carriers are actively managing capacity on the India-Europe route through blank sailings (void calls) and service adjustments, according to a new freight rate update by Sarjak Container Lines.

“Shippers on the crucial India-Europe trade lane are facing unprecedented volatility this December, with spot container freight rates reportedly soaring by 50-60% (from $750 per 40-foot container to $1,200 per 40-foot container) in a matter of weeks. This sudden and steep rise, evidenced by significant General Rate Increases (GRIs) announced by major carriers for early December, is challenging budgeting and supply chain stability for Indian exporters,” says Supal Shah, CEO of Sarjak Container Lines. “These rate hikes are less about a massive, unexpected surge in underlying demand and more about disciplined, strategic capacity management by shipping lines.”

Key takeaways:

·        Blank sailings, or cancelled voyages, persist at 8-10% of scheduled capacity on Asia-Europe routes, with Drewry tracking 64 cancellations out of 719 planned sailings over the next five weeks through early January 2026. These moves, concentrated on transpacific and Asia-Europe corridors, help carriers maintain utilization rates above 90% and justify hikes.

·        Recent reports confirm that this capacity discipline is succeeding in moving spot rates upward, despite underlying global demand being described as "subdued" in some sectors.

·        The typical year-end rush for European holiday inventory, coupled with the final push by manufacturers to meet annual targets, creates a natural surge in export volumes from India. This Q4 peak season pressure enables carriers to successfully enforce the planned GRIs and surcharges.

“For many carriers, this aggressive capacity cut is a concerted effort to push rates off what they perceive as unsustainable lows. Having witnessed several weeks of declines that brought spot rates near unprofitable levels, shipping lines are now leveraging capacity cuts to restore rates and improve profitability ahead of the critical annual contract negotiation season for 2026,” adds Shah.