Container shortage: Vehicle manufacturers forced to import raw materials by air

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Mumbai, Ta. 06 January 2021, Wednesday

The shortage of containers is forcing the country's automakers to order their raw materials by air. Vehicle manufacturers have been facing a shortage of containers for the last two-three months. Raw materials are usually imported by sea.

Sources at a Chennai-based company said that about 150 tonnes of raw materials and components have been forced to be imported by air in the last three months. He also claimed that the import was done through a special charter plane.

"We will have to continue importing until the shortage of containers is eliminated," he said. He said the decision to order the goods was taken because the shortage of raw materials would not halt production.

Importing components by air has resulted in a huge increase in logistics costs. The increase is estimated to be three to four times, sources said.

Due to the lack of containers, only fifty per cent of the ships are currently operating, while demand from companies in various sectors is increasing. Container fares have also increased due to the shortage. In addition, it has become difficult for exporters to deliver their export orders on time.

It has been taking a long time on the movement of containers while export performance is improving after the impact of Corona.

Containers shipped for export do not return soon as India's imports decline. One exporter said shipping companies could not afford to bring empty containers.

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