New Delhi, December 25
Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers, said a trade body in the world’s fifth biggest auto market.
Shipping freight rates have surged since July and companies are now finding it “almost impossible to sustain normal trade operations”, said Rajesh Menon, director general at the Society of Indian Automobile Manufacturers.
That is a cause for concern just as India’s auto industry has started showing signs of recovery after coronavirus lockdowns eased.
Denmark’s AP Moller-Maersk said overall exports from India have bounced back strongly but imports have not, leading to an imbalance and causing the container shortage. — Reuters