The Federation of Indian Export Organisations (FIEO) on Wednesday said that lack of container availability and high rates hurt the country’s export sector and posed a “serious concern” challenge for exporters to meet commitments to their international clients. The statement is a response to an acute container shortage in Asia as ship liners prefer to serve lucrative long-haul routes. At the same time, the coronavirus pandemic further worsens the supply chain disruptions.
FIEO president Sharad Kumar Saraf said ship liners have been shutting out the containers abruptly, saying the vessels are full. Saraf also noted that the shortage would prevent Indian exporters from taking benefits of a pick-up in export demand. He also urged the government to set up a regulatory body to protect the shipping sector. The country’s merchandise exports were up by $1.4 billion from a year ago to $27.4 billion in September, commerce ministry data showed. Meanwhile, freight rates increased by 20-40% since July.
