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India will buy more second-hand ships to increase container capacity

Two senior shipping officials announced on Thursday that India would purchase additional second-hand ships to increase the country's capacity for container shipping. This follows discussions with various ministries to reduce transportation costs and boost exports.

After India's goods exports dropped for two months in a row, including a 9.3% drop year-on-year in August, traders held discussions. They blamed rising shipping costs, the slowdown in China, and the recessionary trends across Europe and America.

After the meeting, shipping officials informed reporters that the addition of new vessels would reduce export times and increase container capacity between 10% and 12%.

Piyush Goyal, the Indian Trade Minister, said that he expects shipping and transport costs to drop by a third in the near future.

India's Shipping Minister said that attacks on the Red Sea shipping routes since late 2023 have increased transit times as vessels were diverted around Africa’s Cape of Good Hope. This has led to higher charter hire costs and port delays, he added.

Goyal stated that the discussions with ministers from finance, shipping and railways, as well as aviation, on Thursday focused on geopolitical issues, such as those in the Red Sea and their impact on commerce. (Reporting and writing by Shivangi Asharya, Editing by Christian Schmollinger & Emelia Sithole Matarise).

(source: Reuters)