Hike in fares of shipping containers: Know the reasons behind it and impact on exporters

The outbreak of coronavirus pandemic last year has also affected the country's import and exports badly, due to which the fare of shipping containers has also increased.

The Covid-19 pandemic has badly affected the economy of the world including India. Import-export is one of the most affected sectors. But suddenly the demand increased because of which one of the major challenges before the exporters was the increasing fare of containers.

Around 80 percent of the transportation of goods around the world is done via ships. But if the experts are to be believed, from 2019 to till date the fare of the containers has increased by more than 500 percent.

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Dr Ajay Sahai, DG and CEO, FIEO has admitted that exporters are facing issues in meeting the demand due to shortage of containers. He further informed that he has spoken to the government regarding the matter and has asked them to provide about 1 lakh containers at the earliest.

The main reason behind the hike in fares of shipping container is the increase in demand around the world. Shortage of containers, reduction in the number of workers, among others are also the reasons behind the rise in fare.

According to the information provided by the Trade Promotion Council of India (TPCI), US exports from India has increased by more than 20 percent in the first quarter of the year 2021 (April-June period) compared to the year 2019.

But now the trend is changing as now exporters are preferring to send goods to nearby countries instead of sending it on long routes to countries like America and Europe.

(Reported by: Subodh Mishra)