Sun Sep 15 09:50:52 UTC 2024: ## India Faces Export Challenges Due to Rising Freight Costs and Container Shortage, Says GTRI

**New Delhi:** India’s exports are facing significant challenges due to soaring freight costs, a shortage of containers, and the country’s dependence on major shipping hubs and foreign carriers, according to the Global Trade Research Initiative (GTRI).

GTRI Founder Ajay Srivastava highlighted that shipping rates for a 40-foot container have more than doubled in the past year, driven by disruptions in the Red Sea and port congestion in Singapore. He further warned that a potential escalation of the US-China trade war could exacerbate these issues.

To mitigate these challenges, GTRI recommends a multi-pronged approach:

* **Boosting Domestic Container Production:** India currently produces a negligible amount of containers compared to global leader China, making it vulnerable to supply disruptions and price fluctuations. GTRI urges increased investment and policy support to scale up domestic container production.
* **Enhancing the Role of Local Shipping Companies:** India heavily relies on foreign shipping companies for its international trade. To reduce dependence and manage costs, GTRI recommends strengthening domestic shipping firms and increasing their share of cargo transportation.
* **Promoting Use of Domestic Containers:** India needs to prioritize the use of locally made containers to reduce reliance on imports, minimize risk from global supply chain disruptions, and support domestic manufacturing.

Srivastava emphasized that India’s reliance on major shipping hubs and foreign carriers increases costs and risks. He also pointed to unverified reports of China stockpiling containers, potentially leading to further shortages.

GTRI’s recommendations highlight the need for India to take proactive measures to enhance its logistics sector and secure its export potential amidst global uncertainties.

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