Imports From India Decrease

March 27, 2008 by Splatty  
Filed under India

 Print This Post

Leave a comment

Further signs that the global economy is cooling; container imports from India to the U.S. decreased 6 percent during 2007.

According to an article on livemint.com:

With the credit crisis in the country deepening, 2008 could be worse for India as far as exports to the US are concerned. Already, the slowdown has forced some companies to suspend shipping services from the country to the US and freight rates have fallen nearly 50%.
The worst hit are India’s garment exports, which have fallen significantly. Apart from garments, India exports iron and steel, carpets, mats, rugs, groceries, stones, chemicals, furniture and electronic goods to the US. The only positive development for container shipping firms operating from India is that the worst could be over in terms of freight rates.

The slowdown in the U.S. economy has lead to overcapacity on the India/US tradelane prompting steamship lines to re-allocate vessel strings to more lucrative shipping lanes.

Container shipping lines are also increasingly deploying ships on routes to other Asian destinations, including China, and Europe. “These sectors are growing strong,” said an official with Japan’s K Line, who did not want to be identified.
Europe is an attractive destination, too, with container cargo traffic from India growing by nearly 30% over the last year. As a result, container ships plying to Europe are going full and freight rates on this sector have increased significantly.

Logistics Management: Profile on India

All ok in India?

India aggressively courting free trade agreements

Fedex To Acquire Prakash Air Freight