India planning special West Asia ships, nearly halving freight costs
India is planning to run special ships to West Asia, aiming to cut export costs by nearly half, so shipping a standard container could cost less than the current $3,000 to $3,500 for regular cargo or $4,500 to $6,000 for refrigerated units.
Because of issues at the Strait of Hormuz, shipments may go through alternative ports and finish their journey by road.
Farmers and exporters benefit
This move is especially good news for farmers and exporters of onions, bananas, rice, and tea.
With lower freight rates on the horizon, sending these products abroad should get a lot easier and more affordable.
SCI will provide ships as needed while Concor ensures enough containers are available.
Gulf countries might even help with some freight costs, making Indian goods more competitive in West Asian markets.