Escalating shipping disruptions triggered by the continuing crisis in West Asia have prompted Indian exporters to seek urgent government intervention.
Introduction to the West Asia Crisis
The ongoing crisis in West Asia has significantly impacted the shipping industry, leading to increased freight rates and reduced direct calls by mother vessels at Indian ports. As a result, Indian exporters are facing significant challenges in maintaining their export competitiveness.
Impact on Indian Exporters
The Federation of Indian Export Organizations (FIEO) has flagged the issue of fewer mother vessel calls, dependence on foreign transshipment hubs, and surging freight costs. The increased reliance on feeder services has increased transit time, cargo handling costs, and overall logistics expenses.
Key Demands by FIEO
- Rationalization and greater transparency in freight and contingency charges
- Restoration of more direct mother vessel calls at Indian ports
- Measures to ensure adequate vessel capacity and schedule reliability
- Creation of contingency mechanisms to minimize disruptions during future geopolitical crises
The West Asia crisis has disrupted shipping networks, resulting in fewer direct calls by mainline vessels at Indian ports and forcing a larger share of export cargo to be routed through overseas transshipment hubs such as Colombo, Singapore, and Jebel Ali.
Peak Season Surcharge Announcement
French carrier CMA CGM has announced a fresh Peak Season Surcharge (PSS) effective August 15 on cargo originating from India, Pakistan, Sri Lanka, the Middle East Gulf, and Red Sea ports and bound for the US East Coast, Gulf Coast, and inland destinations. The surcharge has been fixed at $5,000/$9,000 per container across major categories.
Conclusion and Call to Action
In conclusion, the West Asia crisis has significantly impacted the shipping industry, leading to increased freight rates and reduced direct calls by mother vessels at Indian ports. As a leading freight forwarding company in Kolkata, India, Oceanic Express LLP urges the government to take immediate action to address these issues and ensure that Indian exporters can maintain their export competitiveness. If you are an exporter facing challenges due to the West Asia crisis, please do not hesitate to contact us at +91-9830041358 / +91-9831034014 to discuss how we can assist you in navigating these challenging times.