Despite recovering economies and increasing export demand, the container prices at major ports such as Chennai, Mundra and Nhava Sheva maintained a constant high.
As informed by shipping companies, the average price of a 20-ft dry container at the Chennai port in May 2021 increased by almost $600 as compared to May 2020. The price stood at around $1,600 (INR 116,736, at INR 72.96 to the dollar) at the end of May, compared to around $1,083 (INR 79,015) in May 2020.
While at Mundra port, the average price of a 20-ft dry container at the end of May stood at around $1,550 compared to $1,163 recorded in June 2020, And, in Nhava Sheva, Navi Mumbai, it was at $1,700 in May against $1,075 in June 2020, sources suggested
Indian exports in the month of May grew by 67.39 percent to $32.21 billion from $19.24 billion in the same month last year. The government data released on June 2 attributed this growth to the growing sectors such as engineering, pharmaceuticals, petroleum products, and chemicals.
This upsurge in export has been maintained even in the month of June. As suggested by the government data, India’s exports grew by 52.39 per cent to USD 7.71 billion during the first week of this month on account of healthy growth in shipments in sectors including engineering, gems and jewellery and petroleum products.
Exports to the US, UAE and Bangladesh rose by about 60 per cent to USD 500 million, 57.86 per cent to USD 173 million and 212 per cent to USD 166.3 million, the data said.
As per industry experts, the trading volumes, which have been on a high since the past two months, are expected to maintain this trend for the next few months as well, as a number of companies look to supply the pent-up demand in other countries.
A drastic demand for exports in goods like vaccines and medical equipment like masks, personal protective equipment kits, and oxygen concentrators has risen in the past few months. Furthermore, demand for white goods has also picked up.
Furthermore, a shortage of raw material is being experienced across the world as economies reopens. This is creating a fuss in the global supply chain and creating pent-up demand.
This can be seen as Pune-based two-wheeler maker Bajaj Auto Ltd in May reported a 113 percent growth in exports, while white goods makers like Whirlpool have reported around 25-30 percent growth in exports in May.