InvestorQ : Is it true that Indian exporters are not able to find containers to export goods from India and why is that happening?
Rutuja Nigam made post

Is it true that Indian exporters are not able to find containers to export goods from India and why is that happening?

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4 weeks ago
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India may be facing a unique problem on the trade front right now. What exactly is this problem, and it is actually quite surprising. It is the problem of vanishing shipping containers. That has become very evident in the last few weeks.

Even as India wants to substantially enhance its exports and trade its way out of the economic crisis, there is a more practical problem. There is pressure piling up at the ports as there are few containers on offer for exporting to the US.

Now, why would that happen and how did we come to such a pass? Most container lessees would prefer a situation wherein they able to send goods to the US and get back imports from the US in the same container. That is the most economical way of doing it.

But the problem arises as India runs a large surplus with the US so there is not enough for containers to bring back to India. That means; India runs a trade surplus with the US so containers have to come back empty to India adding to the costs.

India’s exports are growing in volume terms but imports are still falling, leading to this container imbalance. This should rectify once global trade flows are back to normal. Ships that move goods want to pass on the cost to exporters. That is where things appear to have got stuck, because exporters are already under severe pressure.

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