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Rising container freight costs UPSC NOTE

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  India Ratings and Research findings A recent four-fold spike in container freight costs , could hit Indian exporters’ profit margins and e...

 India Ratings and Research findings

  • A recent four-fold spike in container freight costs, could hit Indian exporters’ profit margins and enhance their working capital requirements through 2024-25 if there is no respite soon

  • Smaller players likely to face a worse impact

  • After the COVID pandemic due to supply chain bottlenecks, the correction in freight and forwarding cost of Indian corporates was lower than that for international freight

  • Uptick in global freight rates could be a surge in Chinese exports seeking to beat the duty protections kicking in the U.S.

  • It attributed this to the higher usage of fuel and rising insurance risk premia due to the 

    • disruptions in the Red Sea 

    • 24% drop in merchandise trade flowing through the Panama Canal this year

  • Increased travel time and expansion of trade routes are causing congestion at the main ports, thus increasing the turnaround time for ships and adding further to the cost


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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Rising container freight costs UPSC NOTE
Rising container freight costs UPSC NOTE
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Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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