Accumulation of issues for India import
27 July 2021
Until recently, importing from India was relatively problem-free. There was usually plenty of space and the tariffs remained reasonably stable. However, it looks like this is about to change. The persisting pandemic is probably to blame. The rest of the Indian subcontinent is already experiencing rising issues. What should you bear in mind?
Imbalanced supply and demand
Consumption in India has seen a sharp decline over the last few months. This is mainly due to the coronavirus, which is hitting the country hard. This meant there was a lot less container transport to India. As a result, the number of available empty container for export also fell considerably.
By now, lockdowns in India are cautiously eased and export is slowly being restarted. The great demand for tonnage, together with the low availability of containers, is creating significant problems. Add to that the serious lack of space caused by several issues:
- The lockdowns have resulted in large backlogs of cargo waiting to be shipped. These must be processed first.
- Container ships from China that take on cargo in the transhipment ports are often full already. Goods from (the south of) India have to use these port on their way to Europe, but are now more often stuck.
- Some shipping companies have altered their sailing routes, so that the Colombo transhipment port is no longer on the route.
All this makes it difficult to import goods from India. Logically, the huge difference between supply and demand is also pushing tariffs higher.
Problems on the entire Indian subcontinent
Until recently, the Indian subcontinent experienced minimal disruption from problems such as lack of space, container shortages, and high tariffs. This is very different from the Far East, where this situation has been ongoing for a long time. The problems are huge, especially in China. Unfortunately, we can see a similar situation developing on the Indian subcontinent. It means that importing from countries such as Bangladesh and Pakistan, as well as India, is becoming ever more difficult.
It goes without saying that we will make every effort to continue to import your goods from Asia. Together with our local agents, we are constantly looking for the best solutions. If you have any questions about the current situation and/or importing from India, please contact us.
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