According to Commerce and Industry Minister Piyush Goyal, the extended travel times caused by ships using longer routes through the Cape of Good Hope have affected international trade, especially Indian exports. He claimed that as a result, it now takes longer for goods to reach foreign markets. The minister added that regular contacts are made with shipping lines, port/terminal, and export/import associations to assess for potential interventions. “No shortage of containers has been, however, reported on account of the longer voyage time or the Red Sea conflicts issues and Russia-Ukraine War,” the minister said.
He also mentioned the low demand for Indian-made containers and, as a result, the country’s restricted capacity to produce them. Economies of scale in the container manufacturing sector favor well-established foreign producers that enjoy the advantages of reduced production costs, cutting-edge technologies, and instant cargo loading options.
In a written response to the Lok Sabha, he stated, “Global trade, including Indian exports, has been impacted by the long voyage time due to ships taking longer routes through Cape of Good Hope.” The minister reported that since 2021, Container Corporation of India Limited (CONCOR) has ordered a total of 2500 containers from Andhra Pradesh-based Amba Coach Builders Pvt ltd, of which 28 had been delivered as of November.
