Chennai, Tamil Nadu
The shortage of
containers has resulted in a 4x to 6x increase in logistics cost that is
affecting the auto industry. The current waiting period for a container is 1-2
weeks from 24-48 hours before.
Chinese container manufacturers and foreign shipping lines is troubling the
auto industry. Shortage of containers and the resultant 4x to 6x increase in
logistics cost is affecting the auto component exporters and the auto industry,
according to Deepak Jain, President, Automotive Component Manufacturers
Association of India (ACMA).
waiting period for a container is 1-2 weeks from 24-48 hours before.
noted that the container shortage started in H2FY21. Exporters to the US and EU
have been hit badly as the costs have increased. The cost of a 40ft container
to the US is now $6000 from $2000 last year. Similarly, the cost of a 40ft
container to the EU has increased to $5000 from $1500 last year.
announced that component exports in FY21 had fallen 8%
(second year in a row) to $13.3 billion compared to $14.5 billion in FY20 and
$15.2 billion in FY19. India’s top export destinations are the US, Germany,
Thailand, Turkey and the UK.
The only good
news is that the exports to China have increased and China is now one of the
top 10 export destinations. It recorded $360 million in Indian exports, up 14%
from $320 million in FY20.
Source – The Times of India
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