Amid the many uncertainties of international shipping, some parameters – and routes – are welcome havens, remaining unchanged no matter the global turbulence. The India-Europe shipping lane, which enables Europe and India’s $140 billion yearly global trade in goods, was one of them – until now. 

In December 2025, the route began seeing unprecedented volatility, with spot rates – the cost of shipping a container across that route – rising from $750 to $1200 per 40-foot container, an almost 60% jump. 64 voyages along the route were cancelled in January alone, while high carrier utilisation rates are only driving prices up.

Mahika Ravi Shankar, Deputy Editor at Trade Finance Global, spoke to Supal Shah, CEO of Sarjak Container Lines, a major Indian project logistics and special equipment carrier, to find out more about the source of the disruption and how India-Europe maritime trade has been changing in recent years. 

Mahika Ravi Shankar: What is the reason behind the “unprecedented volatility” on the India-Europe trade lane this month?

Supal Shah (SS): The unprecedented volatility on the India-Europe trade lane is primarily driven by disciplined capacity management by global shipping lines rather than a sudden surge in underlying demand. Carriers have implemented blank sailings, service rationalisation, and selective vessel deployment to tighten available space, which has quickly pushed spot rates upward. 

This has coincided with the traditional year-end export rush from India into Europe, such as India’s grape export window, allowing carriers to enforce general rate increases more effectively. Seasonal cargoes such as perishables and time-sensitive shipments further amplify pressure during December. From Sarjak Container Lines’ perspective, this volatility reflects a structural shift toward tactical capacity control by carriers. Rate stability today is increasingly short-term and market-driven rather than purely demand-led.

MRS: How has the nature of cargo – especially special equipment and OOG – evolved between India and Europe over the past decade?

SS: Over the past decade, India–Europe cargo has evolved from largely commodity-led movement to increasingly project-driven and engineered cargo. There has been a steady rise in demand for special equipment such as flat racks, open-top containers, and customised out-of-gauge solutions. 

Reflecting India’s own economic development and its evolving relationship with European industry, Indian exporters are now shipping larger, heavier, and more complex cargoes, including machinery modules, wind components, reactors, and fabricated structures. India’s engineering goods exports to Europe, for example, reached a record high of $2 billion in November 2025 alone, a 38% jump compared to November 2024. . 

This evolution signals India’s growing manufacturing maturity and deeper integration into European infrastructure and energy supply chains. The trade lane today demands execution capability and technical logistics expertise, not just container availability.

MRS: Do you see India’s manufacturing push reshaping export flows into Europe?

SS: India’s manufacturing initiatives, such as the Production Linked Incentive (PLI) schemes launched in 2020 and the Make in India initiative, are clearly reshaping export flows into Europe. European imports from India reached $77 billion in 2024, with machinery, appliances, and engineering goods leading the growth. 

PLI-led electronics manufacturing has also begun supplying key European markets, including the Netherlands, the UK, and Italy. Additionally, renewable energy equipment, such as solar PV modules, is emerging as a strong export segment. These trends indicate a diversification away from traditional sourcing hubs and growing confidence in India as a high-value manufacturing base.

MRS: Are there infrastructure bottlenecks that impact specialised container movement?

SS: Infrastructure bottlenecks do exist in both India and Europe, though the situation has improved significantly over the past decade. 

In India, limited heavy-lift handling capacity at select ports, yard congestion, and regulatory approvals for inland out-of-gauge cargo (OOG) movement can add complexity. In Europe, port congestion, strict safety regulations, and limited space for oversized cargo require careful pre-planning. 

However, larger vessels, improved terminal equipment, and increased investment by shipping lines in specialised container fleets have mitigated many of these challenges. There is also a growing industry preference for moving project cargo via container vessels rather than traditional breakbulk. Containerised solutions offer better schedule reliability, cargo safety, and scalability for complex movements.

MRS: Which sectors currently contribute the most to OOG demand between India and Europe?

SS: Renewable energy, engineering goods, and heavy manufacturing are the largest contributors to OOG demand between India and Europe. Wind energy components such as blades, nacelles, and tower sections account for a significant share of that volume. 

Industrial machinery, power generation equipment, and large fabricated steel structures are also key contributors. Infrastructure-linked exports tied to Europe’s energy transition have grown steadily in recent years. 

The chemical and process industries are another growing segment, particularly for ISO tanks and specialised containment solutions. These sectors prioritise technical competence, planning capability, and reliability over purely price-driven logistics decisions.

MRS: Are European buyers becoming more sensitive to sustainability and carbon footprint considerations?

SS: European buyers are becoming increasingly sensitive to sustainability and carbon footprint considerations in India-origin logistics. Regulatory measures such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which went into effect on 1 January, and expanded sustainability due diligence requirements are forcing importers to scrutinise emissions across their supply chains. 

Maritime shipping’s inclusion under the EU Emissions Trading System has further sharpened this focus. As a result, buyers are seeking logistics partners that can demonstrate lower-emission routing, multimodal optimisation, and transparent reporting. This shift is no longer reputational but commercial in nature. Indian exporters and logistics providers that adapt early will be better positioned to maintain long-term access to European markets.

MRS: Do you expect IMEEC or other multi-modal initiatives to materially alter your operations?

SS: In the long term, corridors such as the recently proposed India–Middle East–Europe Economic Corridor (IMEEC) have the potential to reshape trade flows, but their immediate impact will be limited. These initiatives require significant infrastructure development, regulatory alignment, and commercial viability before they become operationally meaningful. 

In the near term, ocean shipping will remain the backbone of India–Europe trade, particularly for heavy and OOG cargo. Multi-modal corridors may complement sea routes for specific high-value or time-sensitive cargo. Sarjak Container Lines views these initiatives as strategic opportunities rather than short-term disruptors. Any material shift is likely to be gradual rather than transformational.

MRS: What would you like to see improved to strengthen the India–Europe shipping relationship overall?

SS: Strengthening the India-Europe shipping relationship will require coordinated progress across policy, infrastructure, financing, and sustainability. Faster development of strategic corridors such as IMEEC could reduce transit times and improve resilience. 

Continued investment in port infrastructure and multimodal connectivity on both sides is critical to handle rising specialised cargo volumes. Access to long-term financing and blended capital structures would support fleet expansion and green retrofitting. 

Concluding the India–EU free trade agreement – in the works since 2022 – would also improve predictability and regulatory alignment. Finally, deeper collaboration on green shipping initiatives would help future-proof the trade lane under tightening sustainability regulations.