Rajkot: Rajkot: Severe shortage of containers due to the Covid-induced import-export imbalance has badly hit exporters, who are seeing goods piling up in their godowns despite being flushed with overseas orders.
Due to shortage, the freight charges of containers have also increased drastically. Industry sources said even as the freight for container shipment to Dubai has gone up from $30 to $300 over the last few months, exporters have to wait for at least two to three weeks to get the boxes.
In Saurashtra, the two famed industries – engineering goods of Rajkot and ceramics in Morbi – are bearing the brunt.
Velji Patel. a ceramic exporter in Morbi said, “The cargo of nearly 200 containers is laying at my factory. In normal circumstances, we have goods in around 30 containers stacked in our godown. The shortage is also resulting in cancellation of overseas orders.”
According to a rough estimate, there are nearly 5.50 lakh twenty foot equivalent (TEUs, the standard size of containers) handled per month from three ports – Mundra, Kandla and Pipavav. Experts also attribute this extraordinary situation to the lockdown imposed in later stages compared to India, which shutdown in March.
When manufacturing was on in China, there was a lockdown in India which resulted in so import drastically reducing due to poor demand. When India started unlocking, there was a spurt in demand from some developed countries, but there were no incoming containers.
Anil Devli, chief executive officer (CEO) of Indian National Shipowners Association (INSA) explained: “Basically, this issue happened because several shipping lines didn’t have cargo and they were doing blank sailing during the lockdown period.” INSA is the representative body of shipping companies.
“Suppose there are 10 buses running between Ahmedabad and Mumbai carrying 100 passengers daily, but when there are only 40 passengers, the operators will obviously reduce the number of buses. Similarly, shipping lines reduced the containers, but now there is more demand from exporters.”
Devli said it will take one to two months for the things to get back in order.
Saurashtra is the hub of export of auto parts, agriculture equipment, ceramic and brass parts and the industries were fully dependent on the export market during lockdown.
Aashish Joshi, secretary, Gandhidham Chamber of Commerce and Industry, who is also a shipping agent and a freight forwarder said, “The problem is the imbalance between export and import. For example, one container goes to an African country but there is no cargo coming to India from there. The container has to be diverted to the nearest port where there is demand. The container is sailing empty to satisfy the need of export in India and that has added into the freight hike.”
Due to shortage, the freight charges of containers have also increased drastically. Industry sources said even as the freight for container shipment to Dubai has gone up from $30 to $300 over the last few months, exporters have to wait for at least two to three weeks to get the boxes.
In Saurashtra, the two famed industries – engineering goods of Rajkot and ceramics in Morbi – are bearing the brunt.
Velji Patel. a ceramic exporter in Morbi said, “The cargo of nearly 200 containers is laying at my factory. In normal circumstances, we have goods in around 30 containers stacked in our godown. The shortage is also resulting in cancellation of overseas orders.”
According to a rough estimate, there are nearly 5.50 lakh twenty foot equivalent (TEUs, the standard size of containers) handled per month from three ports – Mundra, Kandla and Pipavav. Experts also attribute this extraordinary situation to the lockdown imposed in later stages compared to India, which shutdown in March.
When manufacturing was on in China, there was a lockdown in India which resulted in so import drastically reducing due to poor demand. When India started unlocking, there was a spurt in demand from some developed countries, but there were no incoming containers.
Anil Devli, chief executive officer (CEO) of Indian National Shipowners Association (INSA) explained: “Basically, this issue happened because several shipping lines didn’t have cargo and they were doing blank sailing during the lockdown period.” INSA is the representative body of shipping companies.
“Suppose there are 10 buses running between Ahmedabad and Mumbai carrying 100 passengers daily, but when there are only 40 passengers, the operators will obviously reduce the number of buses. Similarly, shipping lines reduced the containers, but now there is more demand from exporters.”
Devli said it will take one to two months for the things to get back in order.
Saurashtra is the hub of export of auto parts, agriculture equipment, ceramic and brass parts and the industries were fully dependent on the export market during lockdown.
Aashish Joshi, secretary, Gandhidham Chamber of Commerce and Industry, who is also a shipping agent and a freight forwarder said, “The problem is the imbalance between export and import. For example, one container goes to an African country but there is no cargo coming to India from there. The container has to be diverted to the nearest port where there is demand. The container is sailing empty to satisfy the need of export in India and that has added into the freight hike.”
