NEW DELHI: The dispute has led to around 200 shipping vessels getting stranded in the last 10 days with an estimated 500,000 cargo containers. "While bookings are still taking place for the West Coast, expecting a quick resolution, the exporters are worried about cancellations of orders as stores prepare for the festive buying in Christmas," said Subhash Mittal, chairman of the Federation of Indian Export Organisations' northern region wing. The U.S. is India's major export market, accounting for 30 percent or around $18 billion of the total overseas trade. September to December is considered the high season for Indian exports when year-end and Christmas sales deliveries are done. Almost 75 percent of the deliveries are done through ship, which cuts down the freight charges. It takes around 28-30 days for delivery to reach the West Coast. "If the port strike continues for long it could lead to over $1 billion loss for Indian exporters. "We hope the U.S. President will resolve the deadlock," said Mittal. Exporters fear that if the strike continues longer than a month, it could mean a loss of $5-6 billion. The option of routing the cargo through the East Coast was not viable because buyers might not agree to foot the additional freight bill, experts said. Similarly, the airfreight option would steeply cut into the profit margin. "It is mostly the seasonal, fashion and other consumer goods that would be affected," a leading exporter said. Many Indian exporters are bound by contract to ensure deliveries in time to meet the catalogue sales.
Source: IANS