Container shortage in India due to the uneven import-export scenario is taking costs through the roof for both, shipping lines as well as the importers and exporters.
“Freights have jumped on all routes in the range of 20-100 percent depending on the sector. Exporters are operating on losses at times as customer is not ready to absorb the hike,” Mark S. Fernandes, director, IMC Chamber of Commerce and Industry, told Business Standard.
Imports to India plummeted 22-24 percent in the April-November period, while exports have risen to 29 percent in the same period creating equipment (container) imbalance in the domestic market, informed industry officials.
“China was a strong importing partner for India. After Chinese imports came under scanner and bans were placed on Chinese goods, the imports to the country have gone for a toss, resulting in this equipment imbalance for India,” said Umesh Grover, secretary general at Container Freight Station Association of India (CFSAI).
Increased freight cost has impacted the margins of exporters across the sectors. “We are in a helpless situation. Customer is not ready to pick up goods at increased prices, while shipping lines