India is set to bolster its export capabilities significantly with the announcement of several strategic measures aimed at alleviating shipping challenges and reducing costs. Following a critical meeting led by Commerce and Industry Minister Piyush Goyal, the government has outlined plans to purchase five second-hand container vessels and implement reductions in port charges. This initiative seeks to address the ongoing decline in goods exports, which experienced a contraction of 9.3 per cent in August—the lowest in 13 months—attributed to rising shipping costs and a sluggish global economy.
The meeting brought together key stakeholders from various ministries, including shipping, ports, and finance, as well as representatives from exporters’ bodies such as the Federation of Indian Export Organisations (FIEO), freight forwarders, and transport operators. Goyal expressed optimism that these measures would significantly reduce shipping costs, improve container availability, and expedite the evacuation of export consignments, thereby alleviating port congestion. Among the issues discussed were the challenges of container shortages and surging freight rates, exacerbated by geopolitical tensions and economic slowdowns in major markets. To combat these challenges, the Shipping Corporation of India (SCI) will enhance its cargo handling capacity by acquiring five additional second-hand vessels, projected to increase container capacity by 10-12 per cent.
In a notable move to alleviate costs, the Railway Board and Container Corporation of India have introduced a zero-cost storage scheme for empty containers in yards for up to 90 days. This initiative aims to halve existing charges after the free period and significantly reduce storage and handling fees for both 20-foot and 40-foot containers. Furthermore, expedited customs clearances will be implemented to enhance operational efficiency at ports, with a focus on eliminating congestion, particularly at the busy Nhava Sheva port. These reforms not only aim to improve the logistics landscape but also resonate with sustainability goals by promoting more efficient transportation methods. The investment in second-hand vessels, combined with infrastructure enhancements at key ports and airports, underscores India’s commitment to developing a robust export environment while simultaneously addressing the pressing concerns of sustainability in logistics. The collective efforts of the government and the private sector in addressing these shipping challenges represent a pivotal moment for Indian exporters, fostering an environment conducive to growth in an increasingly competitive global market.
