India Ratings and Research findings
A recent four-fold spike in container freight costs, could hit Indian exporters’ profit margins and enhance their working capital requirements through 2024-25 if there is no respite soon
Smaller players likely to face a worse impact
After the COVID pandemic due to supply chain bottlenecks, the correction in freight and forwarding cost of Indian corporates was lower than that for international freight
Uptick in global freight rates could be a surge in Chinese exports seeking to beat the duty protections kicking in the U.S.
It attributed this to the higher usage of fuel and rising insurance risk premia due to the
disruptions in the Red Sea
24% drop in merchandise trade flowing through the Panama Canal this year
Increased travel time and expansion of trade routes are causing congestion at the main ports, thus increasing the turnaround time for ships and adding further to the cost
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