Global container freight rates have surged 130% since February 2026, as renewed tensions in the Middle East put shipping costs back in focus.
The increase comes even as India's container-based export-import trade continues to expand, according to a report by broking firm Jefferies.
Freight rates, which had eased through much of 2025 and early 2026, have risen sharply in recent months. According to the report by ANI, global container freight rates increased from around $2,000–2,500 in February 2026 to approximately $4,000–4,500 in October.
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The rise reverses the earlier downward trend, when freight rates declined as the demand-supply balance improved following elevated shipping costs in 2024.
Jefferies attributed the latest increase to tensions in the Middle East and flagged the possible return of shipping lines to the Suez Canal as an important factor to watch.
India's Container Trade Grows 23% In September
The increase in global shipping costs comes as India's container-based export-import trade continues to register growth.
According to Jefferies, the value of India's containerisable trade rose 23% year-on-year in September 2026. Exports increased 22%, while imports grew 23% during the month.
Exports to the United States recorded a 48% year-on-year increase in September. However, exports to the United Arab Emirates (UAE) and Saudi Arabia declined by 12-15% compared with the same month last year.
The figures indicate continued growth in India's container-based trade despite higher global freight rates. However, the report does not establish that the increase in shipping costs has already slowed India's export-import growth.
Major Ports See 13% Growth In Cargo Volumes
Cargo volumes at India's major ports increased 13% year-on-year in September 2026, according to the report. Non-major ports, however, recorded a 1% decline during the month.
Among non-major ports, Gujarat registered 3% year-on-year growth in cargo volumes. Ports in Maharashtra and Tamil Nadu recorded increases of 6-7%.
Major and non-major ports along India's eastern coast, meanwhile, witnessed a sharp decline in volumes during September, the report said.
The data points to mixed trends in port activity across the country, with major ports recording growth while non-major ports saw a marginal decline.
Suez Canal Route Remains A Key Monitorable
Jefferies highlighted the potential return of shipping lines to the Suez Canal as a key factor to monitor amid continuing tensions in the Middle East.
Changes in shipping routes could influence global container freight rates and transportation costs. The possible return of shipping lines to the canal, despite regional tensions, could therefore become an important factor for businesses dependent on international cargo movement.
Global container freight rates had fallen substantially from their 2021-22 highs before recovering in 2024. They subsequently eased through much of 2025 and early 2026 before rising again.
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With freight rates now significantly higher than their February levels, developments in the Middle East and any changes in shipping routes will remain important to watch for the global shipping industry and businesses involved in international trade.
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