Increasing container freights would push the overall cost of domestic goods in the international markets, which would make it less competitive and hurt the country’s merchandise exports, Trade Promotion Council of India (TPCI) said on Tuesday.
It said that new records have been hit in container freight spot rates of all carriers and further rise is expected this month.
“The industry is worried that if this situation persists, there can be a 5 per cent to 8 per cent increase in the cost of goods from India. This will have an impact on exports too due to equipment shortages or shipments will be postponed due to very high ocean rates. Demand for Indian products will slow down due to high cost,” the council said in a statement.
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