Indian ministry to meet container shipping lines Oct. 21 amid calls to address severe shortage, high rates: sources

Gurgaon — India's commerce ministry has called a meeting with container shipping liners Oct. 21 to address the current capacity shortage and rising freight rates, government sources told S&P Global Platts Oct. 20.

The move follows separate interventions by the US and Chinese authorities in September aimed curbing blank sailing and record high prices in the trans-Pacific route.

"The ministry will discuss the issue of high container rates, unfair demurrage charges...all the issues raised by the exporters," a source at the Federation of Indian Export Organisations said.

The meeting will be attended by major shipping lines, officials from the logistics department of the commerce ministry and FIEO members.

The commerce ministry has also asked FIEO to submit container requirements of exporters for next two months, according to a letter sent by FIEO to its members Oct. 19 and seen by Platts.

FIEO had earlier called for a government regulatory body to address limited container availability and a steep hike in prices.

Freight rates in India have gone up by 20%-40% since July and exporters are scrambling for empty containers as shipping liners are more inclined to deploy higher volumes on long-haul routes due to record high prices.