With the export season commencing, the cost of containers used for transport of good through ships have immensely increased (4 times)
Coimbatore: With the export season commencing, the cost of containers used for transport of good through ships have immensely increased (4 times) and industry has expressed concern that severe shortages are taking a major toll on exporters in Coimbatore and Tirupur.
President of Tirupur Exporters Association (TEA), Raja. M. Shanmugam said:
“Globally, there is a shortage of containers and this puts a major concern on the export industry. Goods for delivery are yet to be dispatched and the cost of payment has increased 4 times. The spread of Covid has led to some changes in the process of shipping globally, including cargo ships sailing inside ports and unloading goods. Moreover, there has to be a constant watch on the crew for any symptoms of infection.
There is currently a shortage of containers carrying goods due to such measures. But taking advantage of this situation, shipowners and forwarders are causing disruption to containers based on speculation. They have increased the cost of containers by up to four times. Containers transporting goods to European countries were charged $1,800 before the outbreak, but now it has increased by $5,000. Similarly, a fee of up to $14,000 is currently being charged.”
He has called upon the entire export, countries to come together to solve the situation and negotiate with shipowners and forwarders to reduce the cost of containers and ensure uninterrupted availability of containers.
Similarly, he requested the process of testing and clearance be made easy. The Government of India held a special discussion meeting through videoconferencing 10 days ago. On behalf of the association, the issue was highlighted and demanded immediate action.
South Indian Engineer Manufacturers Association (SSMA) President K.V. Karthik said, “The shortage of containers and the exponential fare hike have taken a major toll on industries exporting various engineering products from the Coimbatore district to the world. While Prime Minister Narendra Modi has been making concessions to the industry to increase exports, the shortage of containers and the hike in fares have not only hit the export industry hard but also created a major challenge for India.
At a meeting on behalf of our association, we discussed the matter and worked. We have decided to seek the views of the industry and request the Government of India to resolve the issue.”