Trade bodies urge Centre to set up shipping regulator to control surging freight charges


Several trade bodies have urged

the Centre to set up a regulator to deal with the rising charges, amid the problem of container shortages that exporters are facing.


Engineering Export Promotion Council of India (EEPC) claimed that lines are demanding high charges as inward traffic from different countries, particularly from China, has declined for which the exporters are required to pay a higher amount for outbound consignments.



“Imports from China have fallen and the liners have increased rates. No company likes to sail empty after delivery of export consignments,” Sanjay Budhia, chairman of CII national committee on exports and imports, told PTI.


He said all the exporters across the country are facing this problem.


“This is leading to a situation where cargo is lying at ports. We urged the government to set up a regulator to control the freight rates,” Budhia said, adding that exports have started to pick up despite the coronavirus crisis.


After contracting for six months in a row, the country’s exports grew by 5.27 per cent to USD 27.4 billion in September.


The shipping companies have raised due to falling imports from China as liners do not have much cargo while they are returning, an official of the engineering exporters’ body said.


“This is making Indian exports uncompetitive in the global markets,” an EEPC official said.


After witnessing a sharp fall, engineering exports have somewhat steadied, though the contraction continues, he added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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