India/Europe freight rates bottoming out

India/Europe freight rates bottoming out Ocean freight rates between India and Europe are plummeting, according to a story Monday in India’s Business Standard.
   The story said rates to move one TEU have dropped from about $900 one month ago to $450 today, a result of dour demand and overcapacity in the trade. And much of the rate is actually bunker surcharge, meaning some exporters are paying as little as $30 to $40 in base rates.
   The situation mirrors that seen in the Far East/Europe trade, where rumors have abounded that zero rates are attainable on the spot market. It also shows that the carriers’ efforts to trim capacity to better match demand aren’t working as they’d hoped. Indian exports to Europe and North America fell off significantly in November and December as the global economic crisis took hold.