June 11th, 2026 – Indian shippers serving the U.S. West Coast trade lane are facing a sharp increase in ocean freight rates as carriers significantly reduce available capacity on the route.
According to industry sources, spot market rates have nearly doubled over the past two weeks. Current pricing from Nhava Sheva Port to Los Angeles is estimated at approximately $3,800 per TEU and between $5,000 and $5,200 per FEU. In late May, those rates averaged around $1,800 per TEU and $2,500 per FEU.
Industry participants report that escalating rates are being driven primarily by vessel space constraints rather than a surge in cargo demand. Limited capacity has prompted carriers to implement substantially higher freight-all-kinds (FAK) rates as available space becomes increasingly scarce.
Analysts believe carriers are redirecting capacity from India to the more profitable trans-Pacific market originating in China. This shift has reportedly been achieved through blank sailings and reduced weekly allocations for Indian export cargo.
Currently, CMA CGM and Ocean Network Express (ONE) remain the only major carriers offering direct services between India and the U.S. West Coast. However, market sources indicate that both carriers have experienced multiple void sailings throughout June, further tightening available space.
CMA CGM expanded its South China–U.S. West Coast service in March to include direct calls in the Indian subcontinent as part of a broader Asian network restructuring initiative. Most other carriers continue to serve the trade through regional transshipment hubs rather than direct sailings.
Industry observers expect rates on the India–U.S. West Coast trade to continue strengthening in the near term as vessel space becomes even more constrained. The current market conditions underscore how shipping capacity has evolved into a strategic asset rather than a simple commodity. Because liner services operate on fixed schedules with limited flexibility, even modest reductions in available capacity can trigger significant freight rate increases.
Adding to the cost pressures facing Indian exporters, Maersk has announced plans to introduce an overweight container surcharge on shipments bound for both the U.S. East and West Coasts. Effective July 9th, the carrier will apply a $500 surcharge per container on standard 20-foot dry and tank shipments with a verified gross mass exceeding 24 metric tons.
Maersk stated that the heavy-load surcharge will automatically apply when shipments exceed the designated weight threshold. The surcharge will be applicable across the carrier’s ocean product portfolio, with the exception of SPOT and Maersk Go services.
