Freight surge, LPG shortage amid W Asia crisis hit exports from east India

Kolkata, March 26: The West Asia crisis has pushed freight costs for Europe-bound cargo up by 60-80 per cent, with exports falling by as much as 50 per cent for some exporters while hundreds of containers got stranded at Kolkata port, industry representatives said on Thursday.
Calcutta Customs House Agents Association (CCHAA) president Mannu Choudhary told PTI that freight charges have risen by over 40 per cent due to rerouting through the African route, while war surcharges imposed by shipping lines have taken the total cost escalation to 70-80 per cent for shipments to Europe and the US.
Exporters also complained of a shortage of containers.
“Shipping lines are denying freight details to exporters, who are now waiting. No fresh containers are being accepted by shipping lines,” he said.
Choudhary said around 600 containers that had entered Kolkata port for loading were being returned to the city following last-minute cargo cancellations.
Of these, around 400 have already been taken back, while the remaining 200 are in the process of being cleared.
Former EEPC India chairman and managing director of Nipha Ltd, Rakesh Shah, said the situation was “dire”. He said the LPG supply crunch was compounding production difficulties, as the fuel is used in the finishing process for certain manufactured goods, including engineering products. (PTI)