Higher shipping costs are putting pressure on export margins, while strong Indian port activity signals continued demand

New Delhi, September 2026:Global shipping markets are facing renewed pressure as container freight rates climb sharply, creating a difficult environment for exporters and importers.

According to a recent Jefferies report, global container freight rates have risen 132% from February 2026 levels, while India's port volumes increased 7% year-on-year in August 2026. The increase in freight rates has been linked to Middle East tensions, early peak-season shipments and cargo being moved ahead of China's Golden Week.

The numbers highlight an important development: trade activity remains strong even as the cost of moving goods increases.

India’s Ports Continue to Grow

Indian ports recorded healthy growth in August.

• Overall port volumes: +7% YoY

• Major ports: +10% YoY

• Non-major ports: +11% YoY

• Port container volumes: +10% YoY

• India's export-import trade: +18% YoY

• Containerisable trade: +21% YoY

• Exports: +23% YoY

• Imports: +20% YoY

The data indicates that India's international trade flows remain active despite the increase in logistics costs.

At the same time, Indian Railways' container volumes declined 3% YoY in August, showing how geopolitical and routing disruptions can affect different modes of transportation differently.

Why Are Freight Rates Rising?

Several factors are contributing to the current freight environment.

Geopolitical uncertainty is affecting shipping routes and schedules, particularly around the Middle East.

Early peak-season shipments are also increasing demand for container capacity. Businesses are moving cargo earlier to reduce the risk of delays and disruptions.

In addition, front-loading ahead of China's Golden Week is contributing to higher demand for shipping capacity.

This combination creates a challenging situation for exporters: demand for shipping capacity rises at the same time that available routing options may become more constrained.

What Does This Mean for Home-Textile Exporters?

For India's home-textile sector, freight is an important part of the final export cost.

Products such as bath towels, hand towels, kitchen towels, placemats, table runners and other home-furnishing products can be particularly sensitive to freight because margins depend on both product cost and shipping efficiency.

When freight rises sharply, exporters can face three choices:

Increase the selling price → absorb the additional cost → improve logistics efficiency.

The third option is becoming increasingly important.

How Exporters Can Reduce the Impact

1. Book Earlier

Advance planning can help exporters avoid last-minute capacity constraints and premium pricing. Freight-management guidance recommends planning shipments ahead and considering off-peak periods where possible.

For regular export orders, businesses can coordinate production completion and cargo-ready dates with expected sailing schedules.

2. Improve Container Utilisation

For textile products, packaging and loading efficiency can directly affect freight cost per piece.

Better folding, carton dimensions and packing density can allow more products to be loaded into the same container.

For example:

More units per container = Lower freight allocation per unit.

This is particularly relevant for towels, runners and other products where packaging can be optimized without compromising product quality.

3. Consolidate Smaller Shipments

Where appropriate, exporters can compare FCL, LCL and consolidated cargo rather than automatically selecting one shipping method.

Consolidation can improve load efficiency, while the appropriate choice depends on cargo volume, route, delivery time and total charges.

4. Compare the Total Freight Cost

A low headline ocean-freight rate does not always mean a cheaper shipment.

iContainers recommends comparing quotes using the same cargo details, route and service scope, while checking origin charges, destination charges, surcharges, validity periods and possible additional costs.

For exporters, the important number is therefore:

Total Logistics Cost — not just Ocean Freight.

5. Explore Multiple Routes and Modes

Multi-modal transportation can provide flexibility when conditions change. Depending on the shipment, businesses can compare combinations involving road, rail and sea.

Wisor's 2026 freight guidance also highlights route optimization, consolidation and multi-modal strategies as ways to manage changing freight conditions.

The Importance of Freight Cost Per Piece

For textile exporters, one of the simplest ways to understand freight pressure is to calculate the cost at product level.

Freight Cost Per Piece = Total Freight & Logistics Cost ÷ Number of Saleable Units

Instead of looking only at a container costing a certain amount, exporters can determine exactly how much freight contributes to the cost of:

• One bath towel

• One hand towel

• One placemat

• One table runner

• One carton

• One product set

This makes export pricing decisions much more precise.

Freight Is Becoming a Strategic Business Issue

The current market suggests that freight management can no longer be treated only as a logistics function.

For exporters, it increasingly affects:

Pricing → Margins → Customer negotiations → Packaging → Order quantities → Inventory planning → Market competitiveness

With Indian export-import trade rising 18% YoY in August and containerisable trade growing 21%, the opportunity for Indian exporters remains significant. But higher freight costs mean that operational efficiency will become increasingly important.

The Road Ahead

The shipping market remains exposed to geopolitical developments, seasonal demand and changes in routing. Exporters may therefore need to operate with greater flexibility rather than relying on a single freight rate or shipping strategy.

For India's home-textile exporters, the focus should be on better planning, higher container utilisation, shipment consolidation, competitive freight negotiations and transparent pricing.

The objective is not simply to find the cheapest shipping rate.

It is to build an export supply chain that can remain competitive even when freight rates change rapidly.

For home-textile/export-focused article, the strongest figures to highlight are:

+132% — global container freight rates from February levels
+7% — Indian port volumes YoY in August
+10% — port container volumes YoY
+18% — India's export-import trade YoY
+13.79% — exports of cotton yarn/fabrics/made-ups & handloom products
US$82.68B — India's total goods + services exports in August 2026
+320% — reported increase in Asia–US West/East Coast spot rates since late February

Sources:

Sources

1. Jefferies / India port and freight-rate data — India’s port volumes rose 7% YoY in August 2026, while global container freight rates increased 132% from February levels. The report also gives the 10% rise in port container volumes and 18% growth in India’s export-import trade.
   India Port Volumes & Freight Rates — Jefferies report coverage
2. Clarksons Research / ClarkSea Index — Global shipping earnings reached $64,569 per day, 27% above the previous 2007 record. Asia–US West/East Coast spot rates were reported to have risen more than 320% since the end of February.
   ClarkSea Shipping Earnings Index Report
3. Government of India — Ministry of Commerce & Industry / PIB — India’s August 2026 total exports of goods and services were estimated at US$82.68 billion, up 25.41% YoY. Merchandise exports were US$43.81 billion, compared with US$34.74 billion a year earlier. Cotton yarn/fabrics/made-ups and handloom products exports rose 13.79% to US$1.12 billion.
   Government of India — August 2026 Trade Data
4. Reuters — India trade data — August 2026 merchandise exports were reported at US$43.81 billion, while geopolitical tensions contributed to higher crude-oil costs, with India’s crude basket reaching US$90.19/barrel in August.
   Reuters — India August 2026 Trade Data