India should start its own shipping line

EXIM Trade in India has once again pressed the Central government to start its own shipping line of global repute as freight rates have skyrocketed by up to 600 per cent due to the Red sea crisis which would affect them immensely. The trade has been pressing for an India based shipping line when the government is busy in selling off its stakes in the state owned Shipping Corporation of India under its disinvestment policy

The freight hike issue was flagged in the meeting of the Board of Trade (BoT) chaired by Commerce and Industry Minister PiyushGoyal on January 16th, Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai said.  “It is a serious issue” and the problem will hurt the global demand for goods besides pushing inflation in different countries.

The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants.

Due to these attacks, the shippers are taking consignments through the Cape of Good Hope, encircling Africa, resulting in delays of almost 14-20 days and also higher freight and insurance costs.

“At some places, the freight rates have jumped by 600 per cent,” Sahai said adding “We request for developing an Indian Shipping Line of global repute”. Kolkata to Rotterdam freight increased from 500 US dollars to 4,000 US dollars per 20 foot container now due to the Red Sea crisis.