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Shipping Corporation of India (SCI), the country's largest shipping company in the public sector, will discontinue its liner operations to China that it started 12 years ago, as business on this route has become unviable.
"We will stop our liner services on the India-China route because it is not viable for us," a senior SCI official told the Financial Express.
"Although we have a good volume of cargo coming to India, we almost go empty when going back to China.”
China is India's second largest trade partner after the UAE. Bilateral trade between the two nations hit a record US$73.9 billion last year, but the ballooning trade deficit in Beijing's favour rose to over $27 billion.
India’s exports were less than half the value of its imports from China, data from India's commerce ministry showed.
This trade deficit is reflected in freight rates. While import rates are anywhere between $800-850 per FEU, for exports, it is less as $100, making export cargo in this route unviable.
Other large shipping lines that have services on the India-China trade are Mitsui OSK Lines, NYK Lines and Maersk Line.
Cargonews Asia
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