Indian shipping sandwiched by container traffic congestion

Congestion at the transhipment ports of Singapore and Colombo is causing a spillover effect in India, with exporters citing a lack of enough feeder vessels. There is a surge in China-US trade as well, causing more containers to be deployed between the two trading superpowers and reducing availability for others, sector watchers said.

This is also driving up freight rates globally. The rate for a 40-foot container between Shanghai and Los Angeles zoomed 133% year-on-year to $5,894 last week, according to maritime research consultancy Drewry. From Shanghai to New York, tariff increased 106% to $7,893.

Chinese players are frontloading their American exports ahead of the Christmas rush. This is leading to a global container supply crunch.

Domestic traders said a container imbalance fee is also being levied, and liners are “charging whatever they like.”

However, The Container Shipping Lines Association, denied container shortages. “There is some congestion at transhipment ports like Singapore and Colombo, which could be causing some delays.

There is heavy congestion at Colombo and Singapore, and on containers are getting held up there, said a Chennai-based packaging producer. Feeder vessels are not available from Port Klang in Malaysia to Chennai, due to which routing hap-pens through Singapore, and containers have to wait for 15-20 days in Singapore, he said.

This is not only increasing delivery times for Indian exporters but also putting pressure on logistics costs due to rising freight rates and additional charges.

GR. Team

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