Container shortage hits Indian exporters

Foreign buyers have started cancelling the shipments boarding from India because the exporters are not able to avail any containers leading to consignments lying at various ports for weeks together.
This, coupled with ever-soaring freight rates and congested ports, has left the small-time exporters of India fighting for every penny as the freight rates are higher than the cost of their product.
Container News spoke with the Managing Director of the New Delhi-based clothing manufacturer, Jyoti Apparels, HKL Magu, who said that “high freight rates can be absorbed, but unavailability of containers has changed the rules of the game. Several vessels are bypassing India because there are no containers for consignments to be shipped. Sometimes our consignments are lying in ports for three to four weeks. International buyers tell us to either cancel the order or send it by air. But air freight rates have also skyrocketed”.