India began to unblock it, and the shortage of containers and capacity in its major ports hindered exports
The second wave of the epidemic in India has been going on for some time, but after June, as the number of confirmed cases has gradually decreased, the country’s capital, New Delhi, and other regions have begun to relax epidemic prevention measures, but factory production restrictions and air and sea transportation capacity are tight Still endangering exports.
According to a Reuters report on June 15, in New Delhi, one of the most severely affected areas in India, the Indian government has allowed the full reopening of shops and shopping malls and allowed 50% of the seats in restaurants to be opened. Major economic centers such as Chennai, Mumbai and Tamil Nadu allow businesses to reopen.
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However, according to a Chennai-based freight forwarder, factories in Mumbai, Ahmedabad, Chennai, Delhi and Bangalore are still restricted to 50% occupancy rates.
"Many exporters expect production to be delayed by at least one month, leaving end customers no choice but to meet demand by air freight. This is a major setback due to increased costs."
In fact, he said, major export hubs such as Bangalore, Mumbai, Delhi and Kolkata have seen significant increases in air freight prices, with freight to the US market ranging from US$6.5 to US$7 per kilo, depending on the carrier.
"Air freight to the United States is facing challenges, leading to soaring prices. Many shippers report that air freight costs are now higher than product costs." He added.
The freight forwarder said that the freight to the UK was US$3.2-3.5 per kilogram, which was also higher than the price of US$3-3.2 per kilogram in the EU.
He pointed out: "After Brexit, the UK market is currently experiencing significant growth compared to the EU market, because customers believe that transit through the EU gateway will delay the arrival of goods in the UK."
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At the same time, shortages of containers and capacity continue to hinder India's shipping market.
The freight forwarder said that ports such as Nhava Sheva, Mundra, Tuticorin, Chennai, Kattupalli, Cochin and Ennore are still facing container and space crises, and the carrier has restricted bookings for each major trade route.
"There is a serious shortage of space from India to the west coast of the United States, and reservations are not possible. In addition, freight rates have risen sharply, and most shipping companies have implemented peak season surcharges," he explained, noting that the price of 40-foot containers has increased since last month. 2,000 USD.
He added: “Due to the impact and congestion in Singapore, Port Klang, Busan, Valencia and Yantian, the average transit time of USWC has increased from 35 days to 60 days or more.
"Importers and retailers who want conventional containers to enter the United States have begun to look for alternatives to trucking goods through East Coast ports in order to save delivery time." He said.
