Exporters seek government help as vessel shortage sends US-Europe freight rates up 3-4 times

Indian horticulture exporters are seeking government intervention as a shortage of vessels disrupts shipments and pushes up freight costs, particularly on routes to the US and Europe, sources told CNBC-TV18.The Horticulture Produce Exporters Association and other exporters are scheduled to meet the Agricultural and Processed Food Products Export Development Authority (APEDA) and representatives of the shipping industry on Friday to discuss the problem and its impact on exports.Exporters have been raising concerns with the government over the timely availability of vessels as the Iran conflict disrupts shipping schedules, the sources said.The disruption has also driven freight rates on US-Europe routes to three to four times their earlier levels, leaving exporters to pay substantially more for each container.The timing is particularly important for exporters because the disruption coincides with the shipping window for meeting festive demand in the US and Europe.Exporters are seeking government intervention at the earliest and have asked for relief measures to help address the impact of higher freight costs and shipping disruptions, according to the sources.The problem extends beyond horticulture. Exporters across industries have been grappling with vessel shortages and shipping delays amid the broader disruption to maritime trade.Also Read: Cholamandalam Financial Holdings Q1 profit jumps 39% as disbursements rise

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