Exports hit as shippers shun Africa

Exports to the African continent from Indian ports have been severely hampered owing to non-availability of containers and mother vessels.

Most of the major shipping lines serving east and south African ports from Indian ones were mutlinational shipping firms, like P&O Nedlloyds Shipping, Maersk Lines and Mitsui OSK Lines.

Companies exporting to Africa, more so those shipping commodities like mineral goods, were unable to get containers.

The reason was China. The huge demand from that country had led to major diversion of vessels and containers to Chinese ports.

To ease the situation for Indian exporters, the East India Shippers Association (EISA) has convened a meeting with Association of Shipping Interest, a body representing various shipping lines.

B R Chandak, vice president of EISA, said the situation had progressively worsened over the last few months.

"EISA will be taking it up with the shipping lines to find a way out for exporters," he said.

The problem with shortage of containers has been compounded in the case of eastern Indian shippers by the fact that there were not enough vessels calling at Kolkata and Haldia ports.

Exporters, however, admitted the situation was unlikely to improve before November 2004. "There is heavy rush for export cargo to western Europe and USA as September-October is the peak season for pre-Christmas delivery. This demand unlikely to subside before November," they confided.

To be fair, the shortage in containers to ports in east, west and south Africa has been aggravated by a sharp increase in demand.

According to one estimate, container traffic from Kolkata and Haldia to south and west coast of Africa in the first six months of the year rose more than 200 per cent over same period of last year.

Exporters said overall demand was ahead of supply by 20 per cent in all sectors put together from Kolkata and Haldia. This was severely affecting exports of chemicals, engineering items, jute goods and tea.

However, most seriously affected was the African ports. In the second quarter this year, there was acute shortage of containers following severe congestion at Salalah and Durban.

This led to reduction in availability of space for cargo. Industry sources said as far users were concerned, P&O Nedlloyds Shipping appeared to have totally withdrawn from the south and east African sectors.

Maersk Lines, a major carrier to the inland ports of east and south Africa, had withdrawn services, along with Mitsui OSK Lines, another major carrier to the African sector.

There was severe congestion at transshipment ports at Singapore, Port Kelang and Colombo on account of very high demand for movement of cargo to and from China.

This had created a situation where shipping lines had to make a choice about sectors to service.

As freight revenues were higher for cargo moving to and from Chinese ports, the major lines opted for shipments to China. This meant virtual withdrawal of service from the African sector trade. This hit Indian exporters many of which also needed inland haulage service.