Container shortage is killing export business
WAREHOUSING & LOGISTICS

Container shortage is killing export business

Freight shipping costs have skyrocketed, causing exporters to lose business from several countries. The freight cost to both US and Europe have increased by 100%, and to places such as the American West Coast and the UK, there is an increase of over 200% over the last quarter. The Secretary-General of the Federation of Indian MSMEs (FISME), Anil Bhardwaj, told the media that during the last six to eight months, the freight charges have increased from $800 to $2500.

Exporters in several countries including India have been losing their business. Bhardwaj pointed out that shortages are being found only in India and not in China or Vietnam. Importers are already planning to shift to buying from East European countries to save costs, as one packaging exporter told the media.


4th Indian Cement Review Conference 2021

17-18 March 

Click for event info


Since last year, there has been a shortage of containers due to the disruption in the supply chain caused by the pandemic. As a result, and with growing demand, exporters are finding it difficult to book space on vessels. In addition, the fuel price growth that started at the end of last year is also affecting the rates.

Firms in Europe and the US import from India because of the cost arbitrage. But, countries such as those in East Europe and South America have similar labour cost structures as India and import from the country due to technology and operational ease.

While the price rise is attributed to the demand-supply market dynamics, many industry players believe that since a handful of firms control the country's shipping lines, there is a cost monopoly by these firms for taking advantage of the increasing demand.

Image Source


Also read: Expect delays in global supply chain, report says

Also read: CONCOR to float tender for 7k Make in India containers

Freight shipping costs have skyrocketed, causing exporters to lose business from several countries. The freight cost to both US and Europe have increased by 100%, and to places such as the American West Coast and the UK, there is an increase of over 200% over the last quarter. The Secretary-General of the Federation of Indian MSMEs (FISME), Anil Bhardwaj, told the media that during the last six to eight months, the freight charges have increased from $800 to $2500. Exporters in several countries including India have been losing their business. Bhardwaj pointed out that shortages are being found only in India and not in China or Vietnam. Importers are already planning to shift to buying from East European countries to save costs, as one packaging exporter told the media.4th Indian Cement Review Conference 202117-18 March Click for event info Since last year, there has been a shortage of containers due to the disruption in the supply chain caused by the pandemic. As a result, and with growing demand, exporters are finding it difficult to book space on vessels. In addition, the fuel price growth that started at the end of last year is also affecting the rates. Firms in Europe and the US import from India because of the cost arbitrage. But, countries such as those in East Europe and South America have similar labour cost structures as India and import from the country due to technology and operational ease. While the price rise is attributed to the demand-supply market dynamics, many industry players believe that since a handful of firms control the country's shipping lines, there is a cost monopoly by these firms for taking advantage of the increasing demand. Image SourceAlso read: Expect delays in global supply chain, report says Also read: CONCOR to float tender for 7k Make in India containers

Next Story
Real Estate

Sources Unlimited Launches Aurora Collection Inspired by Twilight

Sources Unlimited unveils the Aurora Collection, a luxury lighting series inspired by the soft glow before dawn. Featuring spherical forms and metallic accents, the collection plays with reflections and shadows, enhancing interiors with layered illumination. Designed for floors, tables, ceilings, and walls, Aurora seamlessly integrates into diverse spaces, from homes to hospitality settings. Now available at Sources Unlimited, the collection redefines lighting as an artistic medium, transforming spaces with warmth, nostalgia, and timeless beauty...

Next Story
Real Estate

Build Capital Exits Second SRA Project Investment Near BKC

Build Capital has successfully exited its investment in an SRA project near Bandra-Kurla Complex, marking another milestone in its structured real estate financing strategy. The early-stage investment helped the developer complete rehab work and align the project with DCPR 2034, enhancing total economics. With a 2.25 lakh sq. ft. development potential and projected revenue of over Rs 7.25 billion, the project generated a 19.76 per cent IRR with 100 per cent on-time interest payments. Commenting on the milestone, Kuldeep Jain, CEO of Build Capital, stated: “Our strategic funding and acti..

Next Story
Real Estate

Küche7 Unveils Affogato: A Fusion of Luxury and Function

Küche7, India’s luxury stainless steel kitchen specialist, has launched Affogato, a sculptural kitchen design that merges aesthetics with functionality. Featuring deep brown panels with a brownstone texture, a curved marble-topped island, and a seamlessly integrated gas cooktop, Affogato redefines culinary spaces. Thoughtfully designed storage ensures a clutter-free experience, while soft grey flooring and an inlaid ceiling complete its refined appeal. More than a kitchen, Affogato embodies slow li..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?