A standard 20ft equivalent unit (TEU) shipping container cost US$1,050-1,100 to ship from India to Europe in August, but that rate has since fallen to US$650-700.
The slowdown in the global economy has meant Indian exports to Europe have thinned out to the point where cargo ships are not full as they sail from the subcontinent’s ports, according to The Wall Street Journal.
“The situation every year in October is that cargo waits for ships. This year, ships are waiting for cargo,” the unnamed India head of a European container line told the Journal.
“Ships sailing to European destinations are not going full. The capacity utilisation is less than 80 per cent.”
Europe accounts for 18 per cent of India’s total exports.
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