Rising International Freight Rates May Lower Exporters' Earnings in FY25

India Ratings and Research (Ind-Ra) has stated that the recent surge in container freight rates by 4x (yoy basis), if sustained, could affect the business operations, EBITDA margins and working capital of exporters during FY25.

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“After a brief lull period, the global trade is expected to gain traction, and for that undisrupted sea trade and conducive freight rate are essential. The sharp rise in freight rate is more detrimental for the medium and small entities with thin margin,” says Soumyajit Niyogi, Director, Ind-Ra.