The cost of products, merchandise shipped are expected to increase due to hike in the freight charges of container shipping lines, the Minister of Shipping, Mr G.K. Vasan, informed the Rajya Sabha on Thursday.
Rice, textiles, spices, processed cashew nuts, pharmaceutical products are some of the items that are exported from India through containers. IT products including scrap, software and hardware, wooden logs, raw cashew are some items that are imported to India in containers. The quantum of increase of freight rates would depend upon market conditions.
Container shipping lines are planning to increase the freight rates to cover the operating costs, which have gone up owing to continuous increase in fuel costs.
The freight rates had been stagnant for a long time despite mounting costs because there was overall dip in cargo volumes, and increase in supply of container ships.