The pandemic hit the global exporters and India is not an outliner. As per the reports, the pacing rate of recovering is faster in China as compared to India. There are various reasons for the same:
- India’s consequent restrictions on trade lead to a delay in turnaround time for ships.
- Exporters in India have to pay high freight charges due to a shortage of containers.
- Freight charges to the Middle East double over a period of time.
- Europe freight charges rise to $8,000per container from $2000 per container.
- While a reasonable appreciation can be justified to fuel price hike, this massive increase witnessed in India allude to a sinister plot of artificial shortage creation and cartelization by shipping lines.
- 15-20 days delay in getting space, vessel, and slot hampers the trading sector.
- The unclogging of goods at the global level is unpredictable.
- China has a high processing time that’s one big reason China’s suppliers are luring the large ships with higher freight charges.
The global disaster of Covid-19 hits exporters at a crucial time when they are striving to reap advantages of the resurgence in international demand for commodities. Moreover, the nation’s $400 billion export goal for FY 2022 is also threatened.