Seabreeze Market Minute: Weekly Freight Insights

• India-Africa: Capacity revamp as demand brings rate gains for carriers

A surge in rice exports from India has lifted container freight rates to West Africa by nearly 22%, reaching around $2,400/TEU from Visakhapatnam prompting space shortages on India–Africa routes as carriers prioritize Asia–U.S. lanes ahead of anticipated tariff deadlines. Meanwhile, as trade flows expand, carriers are boosting capacity but brokers warn that overcapacity may eventually strain rates despite demand growth.

• SeaLead terminates charters on 16 box ships now sanctioned by US

Singapore-based SeaLead Shipping has been compelled to terminate charter agreements for 16 container vessels recently sanctioned by the U.S. Treasury’s OFAC program, part of a broader enforcement action targeting over 60 vessels. With these ships now barred from compliant operations, SeaLead is strategically stepping back from charters tied to the sanctions list, highlighting growing compliance pressures on liner operators amid evolving geopolitical risks.

• Schenker makes an impact as DSV announces Q2 results

DSV reported EBIT of DKK 4,725 million, slightly below expectations but kept its full-year forecast. The Schenker acquisition boosted gross profit by DKK 6,414 million and EBIT by DKK 925 million, driving a 46% rise in Air & Sea volumes. Strong free cash flow of DKK 3,982 million supported debt reduction, with integration on track and synergy targets of DKK 9 billion by 2028.

• Indian exporters hope for US trade deal after 25% tariff blow

Indian exporters are facing setbacks after the U.S. imposed a 25% tariff on select goods, impacting key sectors like garments, jewellery, and auto parts. The move, linked to India’s ties with Russia, may result in billions in export losses. Despite the blow, industry leaders are hopeful for a bilateral trade agreement to ease tensions by late 2025. Meanwhile, exporters are being encouraged to strengthen branding and explore alternative markets.