Government intervenes as shipping shocks expose container vulnerability
Indian exporters are struggling with rising freight costs and container shortages caused by geopolitical tensions in West Asia. Many shipping routes have been diverted, leading to significant delays and a shift in cargo traffic toward larger ports like Nhava Sheva.
Why it matters
The disruption highlights the vulnerability of global supply chains and the economic impact of regional conflicts on international trade.
In a normal year, Iran buys almost 4.5 million tonnes of basmati rice from India. “It is difficult for the ships to pass through the Strait of Hormuz now . Availability of vessels from Kandla or Mumbai to Iran is very poor,” says Prem Garg, president of the Indian Rice Exporters Federation. A 20-foot container carrying 26.5 tonnes of rice now costs about $5,000 to book. “But we never know when a vessel will be available,” he says.
The article provides an objective overview of economic challenges faced by exporters, citing industry representatives.
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