Indian exporters face $9,000 freight rates on Latin America routes

Indian exporters are grappling with a sharp rise in container freight rates on Latin America services as shipping lines cut capacity at Indian ports and prioritize space for the Asian peak season. The result has been cargo backlogs, tighter slot availability and higher shipping costs on a route that has seen stronger demand in recent years.

Rates from Jawaharlal Nehru Port to Santos in Brazil are being quoted at about $9,000 for a 40-foot container, while shipments to Paranaguá are reportedly at $8,500. Freight forwarders say cleared export cargo is being held up at loading ports because carriers are allocating fewer slots to Indian shipments.

The strain is being felt across the India-Latin America trade lane, where countries such as Brazil, Mexico and Colombia are important markets for Indian exports. Industry sources say the route has become more active as India’s exports to Latin America have expanded, especially in automobile shipments.

Official data cited in the report shows India’s merchandise exports to Latin America rose 8% in the 2025-26 fiscal year, while overall merchandise exports recovered in the first two months of 2026-27 with a year-on-year increase of around 16%. Trade bodies say this reflects stronger global demand for Indian products but also raises the risk of a supply-demand imbalance on key shipping routes.

Port congestion and customs delays at major gateways such as JNPA and Mundra have added to the pressure on exporters and importers. Analysts say dependable capacity, smoother clearance and better supply chain resilience will be crucial as trade volumes continue to grow.