NEW DELHI, Sept 19 (Askume) – India is considering increasing the country’s container shipping capacity by buying more second-hand cargo, two senior shipping executives said on Thursday after talks with ministries to reduce shipping costs and boost exports.
The discussions come after India’s merchandise exports declined for two consecutive months , with a 9.3% year-on-year drop in August, with traders blaming rising transportation costs, a slowdown in China and lower exports from Europe and the United States.
After the talks, shipping executives told reporters that the addition of new ships would reduce the time required for exports and increase container capacity by 10% to 12%.
Commerce Minister Piyush Goyal said he expects transportation costs for India’s exports to soon reduce by a third.
India’s shipping minister said in July that attacks on the Red Sea route, which is set to begin in late 2023 , had led to increased transit times as ships had to detour around Africa’s Cape of Good Hope, increasing charter costs and facing delays at ports.
Goyal said Thursday’s talks with the ministries of finance, shipping, railways and aviation discussed geopolitical challenges, including the Red Sea, and their impact on trade.
