High freight cost, few transport options make exports difficult

The steep increase in freight charges for air cargo and few trucks is proving to be a major stumbling block for exporters in the Gurugram-Manesar industrial belt.

The steep increase in freight charges for air cargo and few trucks is proving to be a major stumbling block for exporters in the Gurugram-Manesar industrial belt.

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There are over 500 small and large garment export units in Udyog Vihar and Manesar, which supply to markets in Italy, France, Spain and other European countries. Their goods, worth around ₹500 crore, are now stuck at their warehouses for months since the coronavirus outbreak hit Europe bring the region’s economies to a virtual standstill. With India enforcing the ongoing country-wide lockdown to contain the disease on March 25 , their troubles just got harder.

The exporters say that airfreight charges, which was once between ₹100 to ₹120 per kilogram earlier has shot up to ₹500 to ₹600 a kilogram. These firms are not being able to send their goods to warehouses of large transport companies located on the outskirts of the city either for further shipment to ports like Mumbai.

“We send the finished goods by air or by sea but this has now become too expensive. The local trucks are not available and we can’t use our own vehicles to transport goods to warehouses locally,” said Satyendra Singh, general manager of an Udyog Vihar based export firm.

Whatever few truck companies are there, they too are charging higher rates, he added. Also bothering them are the multiple permissions required to resume operations, and meeting the conditions of the standard operating procedures during the lockdown.

On Friday, while extending the lockdown for another two weeks, the Union ministry of home affairs guidelines had made it clear that movement of any cargo trucks was allowed without any conditions. These will be in effect from May 4, but transporters fear that these instructions may not trickle down to the ground inspectors.

“There is express need for authorities to ensure that goods vehicle are not stopped due to Covid-19. Due to multiple checks, the transporters are also not comfortable in taking loads. Also there is a major shortage of drivers,” said Manomohan Gaind, a Manesar-based exporter.

The industrial associations in the city also want that restrictions should be eased and permission be give to transport and other firms to operate on priority. “There should be a single authority in the district to clear such matters so that there is no confusion,” said JN Mangla, president, Gurgaon Industrial Association.

Naveen Gupta, general secretary, All India Motor Transport Congress, said, “In many parts of the country trucks are being stopped for no reason and challans are being issued. Support staff like conductors, and helpers are not able to move around and the drivers are also not being able to come, which has complicated the problems.”

Further, the truckers said that there was uncertainty over opening of godowns, offices, booking offices, and movement of support staff was problematic due to different categorization of zones.

A Haryana government spokesperson, however, said that they are giving preference in issuance of passes and other necessary support to 100% export oriented units and those which have labour on site.