Automakers in India are bracing for a parts shortage and possible production losses over the next three to four months due to a global shortage of available shipping containers said a trade body in the world’s fifth-biggest auto market. Shipping freight rates have surged since July and companies are now finding it “almost impossible to sustain normal trade operations”, said Rajesh Menon, director general at the Society of Indian Automobile Manufacturers (SIAM). That is a cause for concern just as India’s auto industry has started showing signs of recovery after coronavirus lockdowns eased.
SIAM represents major domestic companies such as Maruti Suzuki and Tata Motors as well as global manufacturers including Volkswagen AG and Ford Motor which are major exporters. A global surge in demand for certain goods during the pandemic has upended normal trade flows, stranding empty cargo containers and leading to bottlenecks.