Global shipping companies, concerned with their business prospects, have adopted the tariff-hike in their international routes; almost all big names have raised the tariff. But the Indian exporters say that these hikes ultimately affect the Indian export sector. Maersk is to raise the container rates on the route from India to West Africa by about 14% from September. Hapag-Lloyd, shipping major, announced a hike on the trade from India to Europe from September, and the hike is not less than USD 200 per twenty-foot container unit and double the amount for per 40-foot container unit on all shipments from India to North Europe and Mediterranean. Already the export market is on the decline facing challenges due to the Chinese competitiveness in particular with regard to the US market besides the adverse consequences of the global recession. Mr.Anupam Shah, Senior Vice- Chairman, Engineering Export Promotion Council, a body set up by the Ministry of Commerce with the goal of “Engineering the future”, expressed concern over the decline in exports: “ In the past six months, we have seen a 50% hike in freight rates to the East Coast (US) alone.” Alert to the grim situation, he added: “We have in the past written to the Competition Commission about a possible cartelization in the shipping industry” but they have not received any response.
Tuesday, 11 September 2012
Hike in tariff by the global shipping companies worry the Indian exporters
Global shipping companies, concerned with their business prospects, have adopted the tariff-hike in their international routes; almost all big names have raised the tariff. But the Indian exporters say that these hikes ultimately affect the Indian export sector. Maersk is to raise the container rates on the route from India to West Africa by about 14% from September. Hapag-Lloyd, shipping major, announced a hike on the trade from India to Europe from September, and the hike is not less than USD 200 per twenty-foot container unit and double the amount for per 40-foot container unit on all shipments from India to North Europe and Mediterranean. Already the export market is on the decline facing challenges due to the Chinese competitiveness in particular with regard to the US market besides the adverse consequences of the global recession. Mr.Anupam Shah, Senior Vice- Chairman, Engineering Export Promotion Council, a body set up by the Ministry of Commerce with the goal of “Engineering the future”, expressed concern over the decline in exports: “ In the past six months, we have seen a 50% hike in freight rates to the East Coast (US) alone.” Alert to the grim situation, he added: “We have in the past written to the Competition Commission about a possible cartelization in the shipping industry” but they have not received any response.
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