Exporters run out of containers, wait period up to three weeks

The chain effect of the decrease in imports is container shortage, and this has impacted exporters significantly. India’s exports, during July-September, grew 24 per cent from a year earlier. In October, exports fell by 5.4 per cent and imports by 11.26 per cent.

Sources said exporters now have to wait for a container up to two to three weeks, with the earlier waiting period being just four days. They added that with the Indian festive season on and the Chinese New Year holidays imminent, this cycle is unlikely to be regularlized, anytime soon, until February. The containers that come in as import shipments are shipped out for exports. During the height of the lockdown period when all trades were down, the shipping lines had cut capacity and allied transportation systems. Moreover, the Galwan Valley clashes in Ladakh along the disputed Line of Actual Control (LAC) in June had resulted in the government and business community implementing a ban on imports from China. As a consequence, Chinese shipments took longer, and when exports rebounded and imports dropped, there was a stockup of containers in some ports and scarcity in some.

Anil Bhardwaj, Secretary General Federation of Indian Micro and Small & Medium Enterprises (FISME), said that there are not enough containers available to be returned for exports as fewer imports consignments are coming to Indian shores. He said the problem is acute for MSMEs as many of them require less than container load (LCL) shipments or one or two containers only whereas shipping companies favor larger players.

Worldwide Logistics, a New Jersey-based company, also attributed the shortage of containers in India to a drop in import volumes from China after trade restrictions were imposed. It said the shortage is most critical at Inland Container Depots and also evident at port-side locations. However, WL pointed out that cargo volume from India to the US is extremely strong as US importers look to replenish inventory depleted during the COVID-19 pandemic shutdown period in India. “Most direct and transhipment services to the US east and west coasts from the major gateway ports of Nhava Sheva in Mumbai and Mundra were impacted, with transhipment further exacerbated by the tight space from Asia transhipment hubs,” it said.

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Rakesh Pandit, CEO of Conbox Logistics, told The Loadstar that container shortage was acute at inland terminals. He said shortages are bigger if shippers have to plan their cargo from dryports of central and western India. “There is a waiting period to get bookings and containers for one or two weeks on certain sectors, such as pharmaceutical companies who have to wait almost two weeks to get bookings for US ports,” Pandit said. “Shipments planned in large volumes like marble, rice and other argo commodities are also getting delayed.” Pandit pointed out that exporters are finding it hard to execute orders because of lack of government support in the form of stimulus or financial aid. In regards to drop in imports, he said the market sentiment in India is very negative as many businesses are afraid the pandemic will continue for another year. “There is low demand for almost all products within India, so import growth will not be huge in coming months,” he explained.