For most of 2026, ocean freight was the number every tile importer watched. This week the picture shifted. Rates from India to Europe are far below their summer highs and the global benchmarks are flat to lower, while duties on Indian tiles are being added or confirmed in several markets. If you buy from Morbi, the line that moves your landed cost most on the next order may be the duty line, not the freight line. Here is what changed and what to do about it.
What moved in freight this week
Drewry's World Container Index fell 3% to US$4,429 per 40ft container on 29 October 2026, mainly on lower Transpacific rates. Shanghai–Rotterdam edged up 1% to US$3,686 and Shanghai–Genoa held at US$4,151. Drewry said carriers are announcing higher FAK rates for November, but with spare capacity and weak demand it is uncertain whether they will hold. Suez Canal transits rose to 62 vessels in the week, the highest weekly level this year, while only two vessels passed through the Strait of Hormuz. (Drewry World Container Index, 29 Oct 2026)
The Shanghai Containerized Freight Index barely moved, rising 6.01 points to 3,687.35 on 30 October. (Shanghai Shipping Exchange, SCFI)
On India's own lanes the fall has been much sharper. On 20 October, Indian exporters were quoted US$2,350–2,450 per 40ft from Tuticorin to Antwerp and Rotterdam, against US$6,100–7,000 at the July peak, with a further US$400–600 drop over the previous three weeks and more softening expected through November. Chennai–Rotterdam transit times were 23–24 days, against 34–36 days via the Cape of Good Hope. (BusinessLine, 20 Oct 2026) These are quotes from a South Indian port, so ask for your own all-in rate from Mundra or Pipavav, which are the usual gateways for Morbi cargo.
Duties: the line that is still moving
European Union. Ceramic tiles from India under CN 6907 21, 6907 22, 6907 23, 6907 30 and 6907 40 have carried a definitive anti-dumping duty since February 2023. Rates for India are 6.7% or 8.7% for the sampled producer groups, 7.3% for other cooperating companies listed in Annex I of the regulation, and 8.7% for all other companies. A company-specific rate only applies if the commercial invoice carries a signed declaration in the wording set out in the regulation; without it, the all-others rate applies. (Implementing Regulation (EU) 2023/265, Article 1) The measures run until 11 February 2028. (European Commission, trade defence case history) The list is still being maintained: on 19 October 2026 the Commission amended it to update one Morbi producer's company name. (Implementing Regulation (EU) 2026/2319)
The India–EU free trade agreement will not remove these duties. The EU's ambassador in Delhi said on 8 October that both sides are looking at a December signing and entry into force around the middle of 2027, after European Parliament consent. (Hindustan Times, 8 Oct 2026) The Commission's chapter summary confirms that the agreement keeps the possibility of using anti-dumping, anti-subsidy and safeguard measures. (European Commission, EU–India FTA chapter-by-chapter memo)
Mexico. From 1 January 2026, Mexico raised import tariffs of up to 50% on 1,463 tariff lines for countries it has no free trade agreement with, including India. (PwC India, Mexico tariff increase) Published tariff tables show a 35% general import duty (IGI) on tile lines such as 6907.21.02 and 6907.23.02, plus 16% VAT, so check the rate for your exact line with your agente aduanal. (Joffroy tariff tables, 6907.21.02; 6907.23.02)
On top of that, Mexico published a preliminary anti-dumping determination on ceramic floor and wall tiles from India on 28 September 2026, covering tariff lines 6907.21.02, 6907.22.02 and 6907.23.02. Provisional duties are US$0.07 per square metre for Alliance, US$4.31 per square metre for other exporters that took part in the case but were not selected, and US$10.98 per square metre for Maps and all other exporters, while Cyan is provisionally exempt. They apply regardless of the country the goods are shipped from and remain in force for six months. (Trade Remedies Mexico, 28 Sep 2026; Diario Oficial de la Federación) Because these are fixed amounts per square metre, they weigh most on lower-priced tiles.
United States. We set out the US duty stack in last week's post: the general rate on the HTS line, the additional 10% Section 301 duty and the countervailing duty cash deposit. (Capron Export Desk, 27 Oct 2026) The trade deal is still not signed. On 31 October, the US ambassador to India said the agreement "has been at the finish line for a very long time." (Business Today, 1 Nov 2026)
Costs at origin are rising
Morbi's kilns were largely shut from 5 March to 15 April after the fuel disruption in the Gulf. Natural gas in Morbi has risen from about ₹50 per standard cubic metre on 28 February to about ₹85, and propane is available again at around ₹92. Kajaria put price increases in Morbi at around 18–19% across product categories, while broader estimates for the cluster run to 30–40%. (BusinessLine, 1 Nov 2026)
Industry estimates now put Morbi's FY27 exports at around ₹12,000 crore, down 40%, with 30–40% of units still shut. (BusinessLine, 29 Oct 2026) India's tile exports fell 46% by volume to 100 million square metres in April–July 2026, according to Equirus Securities. (ETRealty)
The rupee closed at 94.93 to the US dollar (provisional) on 30 October. (BusinessLine/PTI, 30 Oct 2026) It gained about 1% in October, its best month since February. (Reuters via Business Recorder, 30 Oct 2026) A firmer rupee and higher fuel costs both leave Indian suppliers less room to cut US-dollar prices.
What tile importers should do now
1. Map duties by supplier, not just by country. In the EU, ask your supplier for its TARIC additional code and the exact invoice declaration. In Mexico, check whether your supplier is named in the determination or took part in the case, and confirm the rate with your agente aduanal. The same tile can carry different duties depending on who made it.
2. Rebuild landed cost with per-square-metre duties. For Mexico, add the provisional duty per square metre to the general duty, freight, insurance and local charges before you compare offers. A cheaper FOB price does not help if the duty per square metre is the larger number.
3. Use the dip in Europe freight, but keep commitments short. India–Europe rates are well below their peak and Drewry is unsure the November increases will hold. Book confirmed sailings now, and avoid long fixed-rate commitments while carriers are still testing increases.
4. Ask for clear quote validity. Fuel and production costs in Morbi are still moving. Agree how long a price holds and what happens if production slips.
5. Plan around the EU agreement, but do not price it in. On current timelines it will not be in force before around mid-2027, and anti-dumping duties stay in place either way.
6. Lock specifications and documents before production. Confirm the HS code and the water absorption class behind it, size, thickness, finish, shade and calibre marking, packing and pallet labels, and the certificate of origin your market needs.
7. Leave slack in delivery dates. Drewry still reports disruption in the Strait of Hormuz, and schedules are shifting as services return to Suez. Build a buffer into project handover dates.
How Capron Export can help
Capron Vitrified is a Morbi-based, ISO and CE certified manufacturer and exporter of vitrified and ceramic tiles, established in 2016, with large-format 600×1200 mm as our lead size. Our PRISM series of 14 glazed colours is kept in stock at all times, and our NOVA series has an anti-scratch GHR surface for high-traffic areas. We give clear FOB quotations with HS codes, confirmed specifications, export packing and full documentation, so your broker has what it needs to confirm the duty that applies to your shipment.
Planning an order for December or Q1 2027? Contact Capron Export through capronvitrified.com or message our export team on WhatsApp at +91 76220 25593. Tell us your market, port, sizes, finishes and monthly volume, and we will come back with an FOB quote and a production schedule.
Note: Freight rates, duty rates and other figures above are taken from the cited sources and can change at short notice. Mexican provisional duties are preliminary and the investigation continues. Confirm current rates and classification with your forwarder and customs broker before booking. This article is not legal or customs advice.
