Container shortage threatens India's budding export revival

A recent revival in Indian exports is under threat because there aren't enough shipping containers to get the goods across the sea.

Shipments of certain goods, especially sales of packaged foods, had surged in recent months as more people eat at home during lockdowns, boosting expectations of a busy Christmas season. But the global impact of the coronavirus on trade and a slump in Indian imports have led to a shortage of incoming shipping containers, boosting freight charges about seven times.

Vimal Agro Products Pvt., which exports goods like canned mangoes and pickles to the Indian diaspora, said orders that were intended to arrive in Australia and New Zealand in time for Diwali reached only after the Hindu festival. While the company can't share details on Christmas orders due to client confidentiality, there's concern of a "big impact" if the container shortage persists, according to Chirag Nemani, vice president for marketing and sales.

"Empty containers were easily available earlier but now that is a big issue," Nemani said. "Customers don't want delay." Sharad Kumar Saraf, president of the Federation of Indian Organisations, said the industry body has been informed that the government is asking shipping lines to arrange for 100,000 containers per week. "The waiting time for containers is currently two weeks or more, while normally it is 1-2 days," said Saraf. "This will definitely impact Christmas orders." (Bloomberg)

Shruti Srivastava