News / Carriers getting choosy on what they carry – opting for lighter loads

Photo: © Teerat Ratrawetakorn | Dreamstime.com

Container lines are becoming increasingly selective about the commodities they want to carry, targeting “more for less, in size” during the peak season rush. 

Heavy and overweight shipments have taken a hard knockback from carriers working to push vessel loads on available space from India to Europe, amid strong booking demand, according to market sources. 

They noted that major liners were pushing for lightweight freight bookings and tightened their cargo weight policies to realise their stowage plans. 

They have also put hefty penalties in place for cargo weight deviations, rising to $2,000 if the discrepancy is over nine tonnes, according to a new advisory from Hapag-Lloyd for exports from India, for which its “weight deviation fee” had been revised. 

“These changes will be applicable from 18 July for all export shipments from India, with the exception of those that fall under FMC regulations,” said the German carrier. The changes for FMC-related trades would come into force on 12 August, it added. 

Other carriers have also announced or already implemented overweight container surcharges, in addition to hiking freight rates significantly. 

For example, CMA CGM Agencies India today advised customers of its updated overweight surcharges for bookings to North Europe and the Mediterranean, which rise to $300 per box. 

The apparel/textiles sector is a key target for carriers trying to secure lighter cargo. Indian ready-made garment (RMG) exports have seen traction in recent months – up 4% year on year in June, after an impressive 10% uptick in May, in value terms, new data shows. 

Given the buoyant outlook, Indian apparel exporters are pressing government to extend additional incentives in the upcoming annual budget announcement for fiscal year 2024-25. 

“With the complete value chain and commitment for compliance-driven quality products, India is all set to unleash its prowess in the textiles and apparel sector by being a significant global player,” said Sudhir Sekhri, chairman of the Apparel Export Promotion Council, yesterday. 

“The long-term policy for garment industry related schemes will provide stability in the policy regime and will be a proactive step to help garment exports from the country,” he added. 

Bangladesh is a top RMG producer and to tap into the export growth potential from this market, Maersk has announced the launch of an intra-Asia container service, branded SH3, with stops at Shanghai Xiamen, Kaohsiung, Nansha and Tanjung Pelepas. 

“The new network accelerates the supply chain and benefits Chinese textile raw materials exporters and garment manufacturers in Bangladesh,” Maersk noted. 

According to sources, vessel space for Indian containerised exports to Europe is a big concern for shippers, as they spot an opportunity to expand buying orders in the wake of trade diversification trends in Asia. 

India’s rapidly growing pharmaceutical trade is another vertical facing serious challenges frome supply chain disruption. CMA CGM has announced a fresh surcharge, of $250 per unit, for pharmaceutical products shipped in reefers, from 10 August.