Mumbai, Aug. 12 -- Indian exporters are facing fresh shipping delays as congestion at the transhipment hubs of Singapore and Colombo spills into domestic trade and a surge in China?US container traffic tightens global container availability. The disruption has unsettled export schedules and increased freight costs across multiple Indian gateways. Industry participants attribute the pressure to bottlenecks at key regional transhipment points.
Industry sources said a shortage of feeder vessels connecting India to major transhipment ports is central, and a Chennai?based packaging producer reported containers waiting 15 to 20 days in Singapore. That contrasts with the usual three to four days required for cargo to reach Chennai from Port Klang when feeders operate. The diversion through Singapore has increased handling time and transit uncertainty.
China's exports to the United States grew around 17 per cent in July year?on?year while imports rose 15 per cent, drawing container capacity to trans?Pacific trade and reducing availability elsewhere. Drewry reported freight rates for a 40?foot container from Shanghai to Los Angeles rose 133 per cent to $5,894 and rates to New York rose 106 per cent to $7,893. The demand shift is reshaping global capacity allocation.
A trade association executive denied that container shortages were the principal cause and attributed delays to port congestion at transhipment hubs, yet exporters described a contrasting experience. Traders said global shipping lines were declining bookings citing container shortages, with confirmed sailing schedules only a month in advance and spot bookings accepted without guarantees of specific loading. Domestic shippers also reported a container imbalance fee and rapidly changing tariffs.
Similar bottlenecks have emerged at Cochin, Tuticorin and Chennai, with a Kerala food exporter reporting daily freight changes and longer transit times. The offline status of Jebel Ali since the Iran conflict escalated has added further strain to regional networks and prompted a redrawing of supply chains. The combination of transhipment congestion, the China?US trade surge and West Asian disruption is creating sustained uncertainty for Indian exporters, and rising costs and unpredictable booking confirmations will continue while these overlapping pressures remain.
Published by HT Digital Content Services with permission from Construction World.