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

Shipping companies counter that their costs have soared as well

Shine Jacob Chennai

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

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 unreasonable fees” in the shipping sector.
“This crisis is a global issue. If the cartelisation allegation is to be probed, it will have to be probed globally. Companies with 600-700 ships had to stop their operations following the 2008 crisis,” Amitabh Kumar, director-general

Also Read

Indian exporters allege global shipping companies are forming cartels

Signals through the fog

Exporters likely to move CCI on 'cartelisation' in shipping industry

Cabinet okays scheme to promote India-owned ships with subsidy support

Govt likely to reintroduce the TMA scheme for farm exporters

Ease of doing business helped create more startups: Piyush Goyal

CACP suggestions on sugar economy ring louder: How does it work?

States slam FM plan to not extend GST compensation after June 2022

Investment grade to bad bank's SR will attract mutual fund money: ARCs

Consumer confidence rally in Sep shows 2% points upswing: Survey

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

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers. Already a BS Premium subscriber?LOGIN NOW

Register to