Indian exporters face freight disruptions amid hub congestion

Indian exporters are experiencing significant ocean freight disruptions due to heavy congestion at major transhipment hubs in Singapore and Colombo. This congestion has led to shortages of feeder vessels and tightened container availability, causing delays and increased uncertainty for cargo moving to global markets.

Industry reports indicate that a surge in China-US trade is exacerbating the situation by absorbing a larger share of the global container fleet. For example, freight rates for routes between Shanghai and US West Coast ports have seen substantial year-on-year increases. This reallocation of capacity toward the trans-Pacific corridor leaves fewer vessels and containers available for other regions, including India.

Exporters report that containers are experiencing extended waiting periods; in Singapore, wait times have reportedly increased to 15–20 days, compared to the usual three to four days for certain routes. Bottlenecks have been noted at several Indian ports, including Chennai, Cochin, and Tuticorin. While some industry representatives attribute the delays primarily to port congestion, traders report that shipping lines are citing container shortages and implementing container imbalance fees.