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Why crisis for exporters could turn out to be a boon for shipping industry

Shipping companies counter that their costs have soared as well

Trade
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Now, most shipping lines have signed long-term contracts of more than three years and have ordered around 600 ships

Shine Jacob Chennai
In August, a group of exporters announced that it would app­roach the Competition Comm­ission of India to investigate possi­ble cartelisation by shipping lines. The basis of its complaints is skyrocketing freight rates — as much as three to four times over the last one year — and a 15 per cent drop in container availability.

But shipping companies claim this steep rise in logistics costs has been the result of the disruptions following worldwide national lockdowns as Covid-19 spread. Indian exporters aren’t the only ones suffering. US President Joe Biden directed the Federal Maritime Commission to crack down on “unjust and

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First Published: Sep 20 2021 | 6:03 AM IST

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