Exporters facing shortage of shipping containers: EEPC

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October 1, 2020 7:11 PM

EEPC India claimed shipping lines are demanding high freight charges as inward traffic from different countries, particularly from China, has declined for which the exporters are required to pay a higher amount for outbound consignments.

The council has approached the commerce ministry, seeking its intervention to resolve the issues and set up a regulator to deal with the "monopolistic" practices being indulged in by the shipping companies.

 

Engineering Export Promotion Council of India on Thursday said exporters are facing shortages of containers and alleged that shipping lines have raised freight charges, which are impacting their competitiveness in global markets.

The council has approached the commerce ministry, seeking its intervention to resolve the issues and set up a regulator to deal with the “monopolistic” practices being indulged in by the shipping companies. EEPC India claimed shipping lines are demanding high freight charges as inward traffic from different countries, particularly from China, has declined for which the exporters are required to pay a higher amount for outbound consignments.

“Shipping lines have told some exporters that for only outward traffic, freight rates will have to increase as there is less inward traffic. An increase in freight charges is also impacting the competitiveness of exporters, apart from the non-availability of containers,” the council said. After witnessing a sharp fall, engineering exports have somewhat steadied, though the contraction continues, it said. The engineering exports dropped by 8.03 per cent in August.

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