India-bound ferrous scrap container freight mixed w-o-w; Europe firms, Australia softens

• Muted UK cargo flows weigh on rate negotiations
• Higher bunker costs offset by easing container market fundamentals

India-bound ferrous scrap container freight rates remained mixed in the week ended 23 July, with the Europe-India route witnessing selective firming, while Australia-India rates eased amid softer booking activity and improved vessel availability.

A UK based shipbroker informed, “Freight rates remain under review, with market participants indicating that revisions are possible, although final levels have yet to be confirmed. At present, there is limited movement of 20-ft container cargo to India, resulting in minimal rate negotiations. Market sentiment also suggests subdued cargo flows from the UK to India, as softer import demand and increased domestic sourcing continue to weigh on shipment volumes.”

Another shipbroker stated, “Current spot freight indications remain relatively firm, although market feedback suggests that lower rates may be achievable through selected carriers. Freight levels on this route continue to be elevated; however, a comparative assessment indicates there is scope for negotiating more competitive rates than the prevailing spot market. A cautious and strategic negotiation approach is recommended, as it may help secure more favorable freight levels, depending on market conditions, carrier capacity, and booking availability.”

An Australia-based shipbroker said, “Container freight remained largely stable, but expectation is high as traders remain active in the export market.”

Route-wise update

Market highlights

• CFI declines w-o-w amid softer demand and easing capacity constraints: The Container Freight Index (CFI) dropped by 104.52 points w-o-w to 3,080.31 on 17 July 2026, compared with 3,184.82 a week earlier. The decline was driven by slowing front-loading demand and increased vessel supply, which reduced upward pressure on container freight rates.
• Bunker prices hike w-o-w: Bunker prices stood at $819/tonne (t) on 23 July, a w-o-w surge of $51/t against $768/t amid higher global marine fuel costs, supported by crude oil prices and renewed geopolitical tensions in the Middle East, which have increased fuel procurement costs and prompted carriers to factor higher bunker expenses into freight pricing.

Outlook

India-bound ferrous scrap container freight rates are expected to remain range-bound with a mixed bias in the near term. Softer import demand in India and increased domestic scrap availability are likely to keep cargo volumes from Europe subdued, limiting the scope for sustained freight increases despite elevated bunker costs.

Meanwhile, improved vessel availability and easing congestion may continue to exert downward pressure on freight rates on select trade lanes. However, any increase in export enquiries or further rise in fuel costs could provide support to freight levels, particularly on long-haul Europe-India routes.