COIMBATORE: The continuing West Asia crisis is disrupting Kongu region’s export trade, with industries facing higher raw material and freight costs, container shortages, rising marine insurance premiums, uncertain delivery schedules and mounting working capital requirements, industry representatives have said.The Indian Chamber of Commerce and Industry (ICCI), Coimbatore chapter, has urged the Federation of Indian Chambers of Commerce and Industry (FICCI) to take up the concerns with the Centre and seek urgent relief for exporters dependent on uninterrupted maritime logistics.ICCI Coimbatore chapter president C Dorairaj said the disruption had affected the availability and pricing of petroleum-linked raw materials, raising input costs and reducing the operating capacity of manufacturing units.The crisis has also led to vessel diversions, longer sailing routes, congestion at alternative ports and substantial increases in freight and related charges. Govt has acknowledged that the situation has resulted in longer sailing routes, congestion at transhipment hubs and conflict-related surcharges, industry representatives said.Exporters have reported a sharp rise in freight costs on key India-US routes. A 40-foot reefer container from Tuticorin to New York, which earlier cost around $5,500, is now reportedly costing nearly $10,000. Similarly, freight from Visakhapatnam to the US West Coast, including Los Angeles, has risen from around $6,000 to $11,000, they said.K V Karthik of the Indian Pump Manufacturers Association said container shortages, higher freight rates which are three times higher and uncertain transit times were making it difficult for exporters to meet delivery commitments. The disruptions could result in order cancellations, loss of customer confidence, reduced export competitiveness and deferment of new orders.He said exporters had raised concerns over unexpected charges imposed by Non-Vessel-Operating Common Carrier (NVOCC) operators, shipping agents and consolidation agents beyond agreed freight rates. Disputes over such charges could lead to withholding of delivery orders, leaving cargo stranded at destinations, demurrage, container freight station (CFS) rent, port storage and reefer plug-in charges.The ICCI has sought steps to improve container availability, rationalise freight rates, regulate additional charges and strengthen monitoring of logistics intermediaries. It has also called for a pan-India grievance redressal mechanism, priority handling for reefer and perishable cargo, relief from disruption-related charges, extended repayment schedules for export loans and enhanced export support.
