India's Shipping Crisis: Rising Costs and Strategic Solutions

Increasing freight costs, container shortages, and dependence on foreign carriers threaten India's exports. The Global Trade Research Initiative (GTRI) suggests India boost domestic container production, enhance local shipping companies, and strengthen domestic logistics to mitigate supply chain disruptions and geopolitical risks.

India's export industry faces daunting challenges with rising freight costs, container shortages, and heavy reliance on foreign shipping carriers, warned think tank GTRI on Sunday. The obstacles are compounded by disruptions such as port congestion and geopolitical tensions.

GTRI recommends that India significantly invest in domestic container production and promote the use of locally made containers to reduce these risks. Strengthening the role of Indian shipping companies is seen as another vital step.

Shipping rates for containers have fluctuated widely and remain above pre-pandemic levels, indicating persistent supply chain issues. Allegations of China hoarding containers further complicate the scenario, though logistical inefficiencies are also to blame.

(With inputs from agencies.)