New Delhi - Foreign container shipping lines operating into and out of India told top government officials last week that there was “no immediate solution” to the problems faced by the nation’s exporters on steep freight rates, shortage of containers and lack of space on ships but said that the situation was “easing out” with rates dropping by 30-40 percent from the east coast and by 30 percent from Nhava Sheva/Mundra to the US east coast.

Freight rates to the U.S. are now in the range of $4,300-4,500 per twenty-foot equivalent unit or TEU, down from $5,500-6,000 per TEU, a few days ago.

To Europe, the rates have declined to $3,000-3,200 per TEU from $3900-4,000 per TEU, a container shipping line executive who attended the 18 September meeting called by Piyush Goyal, Union Minister of Commerce and Industry, said.

“Basically, all the cargo that had to be shipped for the Christmas season shopping in the West has been shipped. Now, there is less cargo. When there is less cargo, it is easy to get space on ships and freight rates automatically are coming down,” the executive said.

A Leading Foreign Shipping Lines Association made it clear that freight rates are dropping, and it is expected to drop further, especially on the Europe sector. But to the US, there is a chance of rates probably holding up because of the impending strike by the longshoremen from 1 October. This may create an artificial supply chain crisis.