Trade imbalance causes container shortage; freight rates hit the roof

Fall in imports from China leads to shortage of containers hurting shipping lines, importers and exporters

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 by 22-24 per cent in the April-November period in terms of volume while exports volumes

have risen by 29 per cent in the same period.