Key Points
Domestic shipping handles only 5-10% of trade volume, with heavy dependence on Chinese containers making India vulnerable to supply disruptions.ANI..
India needs to increase container production, promote the use of domestic containers, strengthen domestic shipping firms and enhance port infrastructure as higher freight costs, container shortage and dependence on major shipping hubs and foreign carriers pose serious challenges to the countrys exports, think tank Global Trade Research Initiative (GTRI) said Sunday...
He added that there had been unverified reports of China hoarding containers to maximize its exports to the US and Europe ahead of potential trade restrictions and a hike in duties on solar panels, electric vehicles, steel and aluminium manufactured by Chinese firms located in China or elsewhere like in Association of Southeast Asian Nations countries...
About 25% of Indias cargo is transshipped through hubs like Colombo, Singapore, and Klang, increasing transit time and freight costs, GTRI said, adding that India depends heavily on containers made in China, making it vulnerable to supply disruptions and price fluctuations...
This leaves India with less than 1% of the global market share, making it vulnerable to disruptions in container availability, Srivastava said.. Locally made containers are important as Indian manufacturers face production costs of $3,500-4,000 per 40-foot container, which is higher than Chinas cost of $2,500-3,000...
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