Huge backlog of orders shortage of shipping space, shipping companies to India to cancel a large number of voyages

India's container trade is facing increasing congestion because of disrupted voyages, equipment shortages and carriers' inability to clear backlogs of orders.

According to shippers in the country, every shipping company faces a "space crisis on all trade routes and services in India".

The source added that this is mainly due to the almost every trade routes on the suspension, "every ship has a container shut out and transshipment", due to sail to cancel booking list more and more long, plus transport facilities congestion, and manpower shortage and other operations, more and more serious problem.

But shipping companies are reported to have adopted an industry-wide strategy of cancelling flights, which they say is a response to reduced demand.

Shipping lines have this month cancelled 24 per cent of their capacity on india-Far East trade routes and cancelled 23 out of 120 scheduled trips, according to eeSea, a liner database.

A further 17 per cent of capacity is expected to be cancelled next month, with 17 flights already announced.

Last week, Maersk announced that it was cancelling services to the Indo-Far East FS12 and FS13 during August, effectively reducing the frequency from once a week to twice a week.Maersk said: "As there is sufficient capacity, we will rebook to ensure the best efficiency and to ensure that the impact on customers is minimised."

Indian freight companies questioned whether there was enough capacity and said there were similar disruptions on trade routes to North American and European ports every other week - "we understand this could continue for another three to four weeks".

This has had an impact on the booking and procurement of export containers, the source added.

"Even with a schedule, carriers cannot issue bookings on immediate vessels, and sometimes they will release shipping space two or three weeks ahead of schedule, but it is difficult to meet customers' demands for immediate delivery, and bookings have fallen during the current week."

"It means all carriers are inundated with bookings and there are extreme space problems and a lot of bookings being turned down," an industry insider said.

At the same time, continuing problems with the clearance of imported containers due to India's blockade restrictions mean that most carriers are facing "severe inventory shortages at almost all loading ports".

CMA CGM announced on Friday that it would readjust its Asian Subcontinent Express (AS1) service next month, which would lead to fewer stops at Shekou and Klnag ports in favour of new ones at Nhava Sheva, which could ease the pressure on Indian freight forwarding agents.

There are six ships on the route with an average capacity of 8,700teu, according to eeSea, with CMA CGM and COSCO supplying ships and maersk and oocl holding 10 per cent of the space each.