While government and industry leaders in India continually call for greater equipment availability to keep pace with rising exports, an analysis of port data reveals one exceptional fact: a sequential rise in the export of empty containers through the country’s larger ports.
For example, Jawaharlal Nehru Port Trust (Nhava Sheva) saw empty exports reach 127,000 TEU between November and January, from about 104,000 TEU of empty boxes sent out in the prior three months. In contrast, empty imports through the port remained relatively flat – at 170,000 TEUs and 165,000 TEUs, respectively, according to available data.
Statistics for Chennai Port also suggest a gaping chasm of a disconnect between equipment outflow and inflow. The southern port handled about 102,000 TEU of empty exports during April-December, with empty arrivals for the nine-month period pegged at 45,000 TEU.
With inward repositioning being the sole source of equipment supply, India, more particularly the east coast region, has suffered from chronic inventory deficits – a problem that became even more pronounced with a sharp rise in demand driven by rebounding trade volumes.
Container lines operating to and from India have been vocal about the proactive measures they have taken to tackle the crisis, noting that empties equivalent to 1.85 million TEU were repositioned into the country at a huge cost during 2021.
According to them, the lingering bottlenecks at major Western ports are delaying ships and slowing the turnaround of equipment. “The shipping lines have been doing all they can to help keep the supply chains moving,” a local shipping line official told Container News.
“In addition, evacuation of containers across global ports is being delayed due to Covid protocols, labour/trailer driver shortages, rail cars being overbooked and warehouses being full. The global ports, therefore, need to invest in infrastructure and gear themselves up on priority so as to efficiently handle large volumes of cargoes that are being shipped into Europe & North America,” explained the official.
He also noted that co-ordinated efforts at various levels in India are critical to restoring an improved balance between capacity and demand and here, customs agencies should work with shippers and other stakeholders with a sense of greater urgency to clear up long-standing import boxes, which carriers believe recently reached almost 20,000 TEU.
“Although Customs undertook a programme to have some of them cleared up, such efforts need to be undertaken on a continual basis to help release the containers for exports swiftly,” added the shipping line representative.
At the same time, to improve container availability at inland locations for export shipments, rail company Container Corporation of India (Concor) has already put in place a scheme for transport of empty boxes from gateway ports and off-dock storage yards free of cost, but shipper concerns around inventory supply continue to persist.
Meanwhile, India last year extended the timeline for re-export of containers by a further three months in a bid to tighten empty container outflow. Generally, holding containers beyond six months is considered deemed import and the importer must pay duties if re-export obligations are not complied with.
Jenny Daniel
India correspondent
