Exporters feel pinch as sea freight to US and Europe rises by 30-40%

The development comes at a time exports from India have started picking up and merchandise exports turned positive for the first time in the last seven months, growing 5.3 per cent

Sea freight rates from Indian ports to the US and European ports have increased by 30-40 per cent to $4,000-4,500 per  twenty-foot equivalent unit (TEU) container, and with further increases expected in October, the rate could soon breach $5,000. 

Traditional export-oriented industries like textiles, leather, automotive and others are feeling the pinch as they dealt with very thin margins only. Adding to that shortage of containers is causing delays for exporters.

The development comes at a time exports from India have started picking up and merchandise exports turned positive for the first time in the last seven months registering a