India: Rice freight remains stable amid selective activity, Gulf routing constraints

• Bulk rates see slight support on West Africa routes despite limited stems
  
  
• Gulf rerouting and high surcharges continue to disrupt container trade
  
  

India's rice export freight market is expected to remain volatile at elevated levels as of mid-April 2026, with bulk rates showing slight firmness on select West Africa routes, while container trade continues to face disruptions due to Gulf routing constraints.

"Rice freight market is stabilising gradually, but not seeing any meaningful upside yet," a charterer said.

Bulk market: Marginal gains, activity remains selective

Bulk sentiment improved slightly, supported by West Africa demand, though overall activity remained limited due to weak cargo visibility.

A shipbroker said, "For Kakinada, we are hearing around $20/t increase due to the current scenario."

Fixtures are occurring selectively, reflecting cautious market sentiment. The broader market also remains under pressure, with nearly 4 lakh tonnes of basmati rice cargo reported to be stranded amid ongoing Hormuz disruptions, highlighting execution challenges despite steady demand, according to BigMint.

Container market: Rerouting keeps pressure intact

Container shipments continued to face operational challenges, with key Gulf routes operating via transshipment hubs.

"Umm Qasr and Jebel Ali are not operating directly and are being routed via Fujairah/Khorfakkan," a market participant noted.

A Punjab-based trader said, "Jebel Ali shipments are delayed, with fewer vessels and nearly 100% surcharge still being charged."

Despite some correction on select routes, elevated surcharges and delays continue to weigh on the market.

Rice market: Stable demand, uneven execution

Demand remains steady, particularly from Africa and the Middle East, but execution is impacted by freight uncertainty.

A charterer said, "Market is stable, but not getting better freights yet. Surcharges remain high for some ports."

"Market is slowly normalising, but uncertainty around full operations of the Strait of Hormuz persists." another added

Outlook

Freight is expected to remain volatile at elevated levels in the near term, with gradual normalisation underway but limited downside visible. Ongoing Gulf routing disruptions and uncertainty around full operations of the Strait of Hormuz are likely to keep rates firm and the market cautious.

Even with a potential improvement in the situation, recovery is expected to be gradual given the scale of disruption and India's dependence on the Middle East as a key export market, according to BigMint.