Indian seafood exporters are upset over a unilateral increase in reefer container freight rates by shipping lines, saying that the lines have imposed an across-the-board hike of $1,500 a container, regardless of its size and/or destination.
The Seafood Exporters Association of India said exporters may not be able to pass on the higher freight bill to the buyers. The association had taken up the issue at the Board of Trade Meeting convened by the Commerce Ministry in New Delhi on March 22 where the officials from the Shipping Ministry were present.
D.B. Ravi Reddy, National President of SEAI, told the Hindu's Business Line there is no regulation on fixing the freight to specific destinations and this has resulted in arbitrary rate increase. Most shipping lines are now charging rates in the range between $700 and $1,000 depending on volumes. But smaller exporters are charged more.
Shippers exporting low-value seafood to destinations in East and West Asia would be put to serious problems and they would not be able to compete with their competitors, Reddy said. The industry is going through a tough phase due to recession in the US and Europe. Operational costs are high and any increase in freight rates will put further pressure on margins.
