Indian importers who rely on Asian-made goods, particularly from China, are facing a fresh wave of container rate shocks, reflecting volatile market conditions.

Spot freight rates on Asia-India routes have more than doubled in the past month or so, according to market data.

For example, ocean shipping companies are booking space from Shanghai to Navasheva at $1,600 per TEU and $1,900 per foot, up from $800 and $900 a month ago.

Freight rates from other Asian ports to India have also risen sharply, with the Singapore-Navasheva route costing US $1,250 per TEU and US $1,550 per FTT, compared with average rates of US $700 and US $1,000 respectively in mid-October.

For bookings from Hong Kong to Nawa Sheva, freight rates have climbed to US $1,600 per TEU and US $1,900 per fTU, double the level at the end of October.

In the past two weeks, there has been a noticeable capacity shortage in the Asian-Indian market after many regional and mainline shipping lines deployed extra capacity to take advantage of the Chinese export boom and then moved ships elsewhere, some to the Red Sea/Mediterranean route, according to industry insiders.

Adding to this concern, CMA CGM has informed Indian customers of the imminent cancellation of three flights on its AS9 (Asian Subcontinental Express) route in December, including the Zhonggu Nanning, ONE Matrix and T S Keelung.

"Customers are requested to plan their shipments accordingly," CMA CGM India said in a statement.

Cma CGM's AS6 service, which is another intra-Asia business managed through the space acquired from COsco Shipping, will also skip India's Pipaavu port and Hong Kong on its current eastbound voyage.

The Marseilla-based carrier told customers: "Cargoes already booked for Pipavaf or Hong Kong will be transferred to the next vessel."

Historically, Asian markets have accounted for the majority of India's imports, both industrial and consumer goods. In addition, Indian procurement flows typically increase in the second half of the year due to local festival-related demand.

Meanwhile, India's merchandise export trade grew strongly in October, offering fresh signs of hope for industry stakeholders and policymakers. According to the latest provisional figures, overall export trade rose 17 per cent year-on-year in the month, the fastest growth in more than a year.

"Such impressive double-digit growth in merchandise exports against the backdrop of ongoing global economic uncertainty is undoubtedly an encouraging sign for recovery," Federation of Indian Export Organizations (FIEO) president Ashwani Kumar said in a statement.

Industry insiders believe that in the case of Bangladesh's garment vertical industry in turmoil, the pick-up in India's garment trade may have contributed to the improvement in export performance to some extent.