The recent delays faced by exporters due to port congestions, shortage of containers and spiralling freight costs have started impacting exports.
According to the South India Tea Exporters Association President Dipak Shah, “I have 4-5 containers (of tea) ready. But, containers are available only after 10 days or so. Many of us have year-long contracts at agreed freight rates. But, the rates have shot up. Shipping time has doubled because of congestion at transhipment ports,” he said.
President of Tiruppur Exporters Association K.M. Subramanian said the cost of a 40-feet-high cube container from Thoothukudi to New York used to cost $4,260 in May. On July 1, it was $7,360. With congestion at major transhipment ports, several vessels are skipping some of these ports. At least one mother vessel used to operate from Colombo to the U.S. every week. Now it is two a month. So, some buyers are asking for air-lifting goods and these costs have seen a 20-25% increase, he said.
S. Mahesh Kumar, a coir exporter, said the Indian government should talk to the shipping lines and ensure adequate space for Indian goods in the vessels as China is said to be using most of the space.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
