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Truckers strike: Export consignments pilling up.


Date: 08-01-2009
Subject: Truckers strike: Export consignments pilling up
  New Delhi, Jan 7   Truckers strike has started hampering exports as a large number of outward consignments have piled up at container terminals and the situation is expected to worsen if the stir continues.
" Thousands of containers have piled up at the container terminals and more are likely to join the queue, thus, hampering exports and supply chain, Federation of Indian Export Organisations (FIEO) President A Sakthivel said in a statement today.

FIEO said exporters are worried that any dislocation in the shipments would spell cancellation of orders and if the strike is not resolved, traders would incur huge losses.

As per the World Bank estimates each day delay in shipment adds to 0.5 per cent of freight-on-board cost to exporters, it said.

Exporters, who are already under pressure from their buyers to reduce prices, will come under more pressure if they have to transport cargo by air.

Sakthivel said goods worth Rs 2,000-2,500 crore are transported by road every day.

"If the strike continues we may lose Rs 400-500 crore per day,"he said.

Truckers, under the aegis of All India Motor Transport Congress, have taken their vehicles off the road since Monday demanding reduction in fuel prices and removal of service tax among other things.


Source : PTI

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