Transportation & Logistics Analysis

Nhava Sheva / Rotterdam: an attractive option for retailers

May 29 2019

This week, let’s focus on India and its booming Port of Nhava Sheva recording a 7.3% traffic growth in TEU in Q1 2019 versus Q1 2018.

Capture d’écran 2019-05-29 à 11.36.31Historical view on average rates in Port to Port (with THC) estimated by Upply over the past 24 months – May 26th

Offering a combination of rationalized rates (see Upply’s historical view) and fast service (23-day long transits on average against 35 to 40 for China), Nhava Sheva is becoming increasingly more attractive for retailers.

Exports are well oriented, and India has the potential to become a substitute sourcing country for finished products designed for western markets, thereby competing directly with China and Vietnam.

From a retailer’s perspective, product manufacturing is now reaching high quality standards. The success of Royal Enfield Motorcycles, designed in the UK and built in India, is a good example of this trend. However, in comparison to China, local administrative and commercial constraints remain an issue.

Exporters from India are not FOB friendly. They like using CIF to be in control of their exports, generate additional revenue, and control access to the different markets. This approach is reminiscent of practices used by the British Empire…

Photo credit: Image by Peter H from Pixabay 

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Expert in Ocean shipping for 25 years, Jerome puts all his knowledge of the industry to contribution for Upply. Ship captain at heart, he has written the English-French Lexicon of Containerized Shipping (Paris: CELSE, 2001).
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