THE Shipping Corporation of india (SCI) will charter at least five more containerships to ensure the number of boxes are where they are needed to support the nation's burgeoning exports, reports Chennai's Hindu daily.
The government has stepped in to resolve the container shortage situation to ensure adequate availability for exporters, with the Shipping Ministry and some other line ministries, like the railways, working on a series of policy interventions.
During internal discussions across ministries, it was acknowledged that the 'front loading of shipments' by China to circumvent US tariffs has worsened the problem of container availability, sources in the know told the Hindu.
Mumbai's Jawaharlal Nehru Port Authority (JNPA) is setting up a centralised coordination system to manage the use of empty containers at major ports across India. The Railway Board has 'significantly' reduced storage and handling charges (of container) at ports.
'The container shortage problem has been further complicated by Chinese exporters who have been front-loading shipments to circumvent US tariffs,' a Shipping Ministry official said.
'This rush in China to pre-emptively export goods before additional tariffs take effect has led to a sudden surge in demand for containers, which in turn has strained global container availability,' a Shipping Ministry official said.
Front loading means assigning costs or benefits to the early stages of the contract or time period. These new tariffs on Chinese exports to the US range mostly from 25 to 100 per cent.
'While some of the tariff increases go into effect immediately, most of these are scheduled for 2025-2026, which has led to China hoarding containers,' another exporter said.
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The government has stepped in to resolve the container shortage situation to ensure adequate availability for exporters, with the Shipping Ministry and some other line ministries, like the railways, working on a series of policy interventions.
During internal discussions across ministries, it was acknowledged that the 'front loading of shipments' by China to circumvent US tariffs has worsened the problem of container availability, sources in the know told the Hindu.
Mumbai's Jawaharlal Nehru Port Authority (JNPA) is setting up a centralised coordination system to manage the use of empty containers at major ports across India. The Railway Board has 'significantly' reduced storage and handling charges (of container) at ports.
'The container shortage problem has been further complicated by Chinese exporters who have been front-loading shipments to circumvent US tariffs,' a Shipping Ministry official said.
'This rush in China to pre-emptively export goods before additional tariffs take effect has led to a sudden surge in demand for containers, which in turn has strained global container availability,' a Shipping Ministry official said.
Front loading means assigning costs or benefits to the early stages of the contract or time period. These new tariffs on Chinese exports to the US range mostly from 25 to 100 per cent.
'While some of the tariff increases go into effect immediately, most of these are scheduled for 2025-2026, which has led to China hoarding containers,' another exporter said.
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