Commerce and Industry Minister Piyush Goyal has highlighted the challenges faced by global trade, particularly Indian exports, due to longer shipping routes. Ships are increasingly navigating through the Cape of Good Hope, leading to extended travel times and delays in goods reaching international markets.
Addressing the Lok Sabha, Goyal noted that this development has affected trade dynamics, but assured that there is no reported shortage of shipping containers linked to these delays or other geopolitical conflicts, such as the ongoing Russia-Ukraine war or Red Sea tensions. He stated that continuous dialogue is maintained with shipping lines, port operators, and trade associations to explore potential interventions to ease the situation.
The minister also shed light on India’s limited capacity to manufacture containers, citing low domestic demand and the dominance of foreign manufacturers in the sector. He explained that, economies of scale, advanced technology, and lower production costs allow global players to maintain a competitive edge.
Providing specific updates, Goyal mentioned that since 2021, the Container Corporation of India Limited (CONCOR) has ordered 2,500 containers from Amba Coach Builders, an Andhra Pradesh-based company. As of November, 28 containers had been delivered.
In his written statement, Goyal emphasised, “Global trade, including Indian exports, has been impacted by the long voyage time due to ships taking longer routes through Cape of Good Hope.” The government is actively monitoring the situation to minimise further disruptions and ensure trade stability.
IMEX SECTOR | UK Food Exports to EU Drop $3bn Annually Amid Brexit Barriers
