Importers of leather products are seeking to advance exports from India by two weeks in the wake of the Red Sea crisis. While freight rates have shot up, the transit time has also increased by two weeks due to the issue.
Rajendra Kumar Jalan, chairman, Council for Leather Exports (CLE), an export promotion council sponsored by the Union ministry of commerce and industry, told reporters here on Wednesday that the freight charges to the US has doubled.
“After the Red Sea crisis, the freight rates for a 40 feet container between India and the east coast of the US has gone up from $1,800 to $3,800. It is $3,600 for Latin America. The concern for importers is the additional transit time, who are pushing us to ship early,” he said. However, the freight rates are still lower for the same destination when compared with the Covid period, which had escalated upto $18,000 between India and the east coast of the US, he added.
As per reports, as a fallout of the Israeli-Palestinian war, shippers are taking consignments through the Cape of Good Hope, resulting in delays of almost 14 days and also higher costs. On the other hand, southern regional chairman of CLE, Israr Ahmed said, India’s sports footwear exports will touch $10 billion over the next five years. “Of this, Tamil Nadu’s contribution will be 70%-80% as several manufacturers are setting up their facilities in the state to make international brands including Nike,” he said. R Selvam, executive director, CLE said, the 37th edition of India International Leather Fair (IILF) is organised at
the Chennai Trade Centre between February 1 and 3. More than 450 exhibitors including overseas exhibitors from 22 countries are participating in the fair.
