Indian exporters are facing a sharp escalation in freight costs, with shipping charges to the US, Europe and other Western markets rising three to four times over the past two months amid widespread disruption to vessel schedules. Freight rates that were around $3,000 per container a couple of months ago have now crossed $9,000 on average, putting significant pressure on exporters at the start of the peak shipping season. The escalation comes at a critical time, as exporters are beginning to move cargo for the festive season in the US and Europe, including Diwali, Halloween, Thanksgiving, Christmas and New Year. Agricultural exporters are also entering an important shipping window. Industry sources said the primary problem is not an actual shortage of vessels or containers, but the lack of timely vessel availability caused by severely disrupted schedules.
