Freight rate volatility Is the new normal
Freight rate volatility Is the new normal
For years, exporters treated freight rates like a cycle. Prices went up, prices came down and stability eventually returned. That assumption no longer holds.
According to UN Trade and Development (UNCTAD), global maritime trade is under sustained pressure due to geopolitical disruptions, Political tensions, supply–demand imbalances, and longer, less predictable shipping routes.
As a result, freight rate volatility is no longer an exception, it is the operating environment.
Why freight rates are no longer predictable?
Recent years have reshaped shipping fundamentals.
- Rerouting around conflict zones has increased voyage distances.
- Carrier capacity planning has become more conservative.
- Trade growth has slowed, but vessel supply continues to adjust unevenly.
As the result rates that spike without warning, soften briefly, then move again often without the “logic” exporters were once used to.
UNCTAD has highlighted that even when some trade lanes stabilise, uncertainty remains embedded in the system, making long-term pricing assumptions increasingly risky.
What are exporters doing differently now?
Quietly, experienced shippers have already adapted. Instead of chasing the lowest spot rate, many are:
- Using forward booking strategies to lock space and pricing earlier
- Splitting volumes across routes or carriers to reduce exposure
- Avoiding single-lane dependency
- Planning freight as a risk variable, not a fixed cost
This shift isn’t about pessimism. It’s about realism.
Why does freight forwarding strategy matter more than ever?
In a volatile market, the role of a freight forwarder changes. It’s no longer just about:- quoting rates – booking containers It’s about:
- understanding when to lock rates and when not to
- anticipating capacity tightening
- advising on alternate routing before disruption hits
- aligning exporter commitments with market reality
This is where experience matters not theoretical knowledge, but pattern recognition built over years of volatile cycles.
Parikh Forwarders isn’t treated volatility as an exception to be explained away. It’s treated as a planning input.
By aligning booking strategies with strong carrier relationships and flexible routing, the goal isn’t to ‘beat the market’ but to reduce uncertainty for exporters operating within it.
Import Drivers:
This is where experience matters not theoretical knowledge, but pattern recognition built over years of volatile cycles.
Parikh Forwarders isn’t treated volatility as an exception to be explained away. It’s treated as a planning input.
By aligning booking strategies with strong carrier relationships and flexible routing, the goal isn’t to ‘beat the market’ but to reduce uncertainty for exporters operating within it.
What This Means for Businesses
Exporters: Focus on high-demand categories like energy products, engineering goods, and agri-exports to leverage global demand.
Importers: Use market intelligence to negotiate better deals, diversify sourcing, and reduce dependency on volatile commodities.
Manufacturers: Tap into technology transfers from trade to modernise production and reduce costs.
📌 Takeaway:
India’s trade is evolving fast, the winners will be those who act on data, adapt to global shifts, and align with high-growth sectors. Whether you’re exporting to new markets or sourcing materials, 2025 offers both challenges and untapped opportunities. To know more about the same, connect with us for more insights.
