Rice exporters expected to get relief from the possibility of reduction in container fares

13-Aug-2024 11:39 AM

New Delhi. Indian rice exporters are expected to get some relief in the coming time as major shipping companies will encourage export shipments of rice in containers to West Africa.

This will increase the demand for rice in West African countries as well as in the international market.

According to trade analysts, micro, small and medium enterprises mainly dependent on container business are expected to get support from this.

It is worth noting that from mid-May to July 2024, the freight of containers increased by 150-200 percent and the fare from Visakhapatnam port of India to Coronou port of Africa increased to $ 4000-5000 per TEU.

In December 2023, it was about $ 2800 per TEU lower than this. In fact, due to the Red Sea waterway being affected by the attack of Houthi rebels, Indian shipping companies had to send ships to West Africa through a different route which was longer.

As a result, there was a shortage of containers and freight charges started increasing. The stock of goods for export shipments increased at major ports and there was a shortage of space.

On the other hand, due to the increase in import duty on Chinese products by the US, China was forced to load more and more containers in advance so that the products could be sent to other countries.

Not only this, but shipping companies had also stopped their supported service from India to West Africa since last month. There was a shortage of containers in the international market.

An exporter from Chhattisgarh says that due to the tremendous increase in the freight charges of containers,

there was a 90 percent increase in the export shipment of non-basmati rice in containers from India and mainly the export continued in bulk.

Now after government intervention, shipping companies have agreed to reduce the freight of containers.