Red Sea Crisis Sparks Container Shortage For Indian Exporters

• In addition to soaring freight rates, Indian exporters are grappling with a shortage of empty containers linked to the Red Sea crisis.
• Major container ports, especially Nhava Sheva and Mundra, are experiencing a pronounced equipment crunch, with 40ft hi-cube boxes in particularly short supply.
• This scarcity is impacting exporters’ ability to fulfill orders and hampering new volume prospects.

Equipment Shortage at Key Ports: Exporters Face Supply Chain Challenges

Indian exporters are facing a dual challenge of skyrocketing freight rates and a shortage of empty containers, primarily tied to the Red Sea crisis. Major container ports, particularly Nhava Sheva and Mundra, which handle a significant portion of India’s containerized ocean trade, are witnessing a pronounced scarcity of 40ft hi-cube boxes. This shortage is forcing forwarders to turn down bookings from regular customers, hindering exporters’ capacity to ship goods against existing orders and jeopardizing new volume prospects. As the Red Sea crisis deepens, the problem of equipment scarcity is expected to exacerbate, impacting the flow of cargo and creating uncertainty in the supply chain.

Challenges in Export Logistics: Disrupted Schedules and Unpredictable Equipment Availability

The Red Sea crisis is causing disruptions beyond equipment shortages, with carriers re-routing vessels around the Cape of Good Hope. This has led to schedule reliability issues, with recent vessel calls at Nhava Sheva and Mundra experiencing delays of 10 to 12 days, on average. Carriers are reportedly not honoring NAC (named account) or contract rates, accepting bookings only on a spot basis. The supply chain challenges are further compounded by glitches in India’s Customs’ gateway program, ICEGATE, reported by terminal officials at Nhava Sheva port. As India’s merchandise export trade shows signs of recovery, the supply chain crisis threatens to impede momentum, prompting concerns and skepticism among the business community.

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Source: The Loadstar

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