- Iron Ore exports increase from Indian east coast port
- Paradip port almost operating at full capacity
- Differential freight charged by Indian railways on exports of iron ore still not suitable
With rising exports of iron ore from India, truck freight charges have also gone up in similar line. SteelMint assessed that charges have gone up by up to Rs 500/MT for Barbil (Odisha) to Paradip Port route, which is around 340 Kms. Current charges stand at around Rs 2,400-2,600/MT, which was at Rs 1,900-2,100/MT last week.
Trade sources highlight SteelMint that there is huge demand from exporters owing to weak Rupee and high iron ore prices in Chinese market.
“Most of the exporters, who have plot at Paradip port are using road as mode of transport over railways. Last week carrying one tonne of iron ore from Barbil region to Paradip it cost Rs 2,000/MT, which has been increased to Rs 2,600/MT now.
Where as transporting it through railways, it will cost an exporter around Rs 2,700-2,800/MT.” said an iron ore exporter based in eastern region of India.
Iron ore and pellet movement has become so active that, there are trucks lined up in several kilometers at Paradip port waiting to be unloaded.
” Falling Rupee and strong iron ore demand from China has prompted iron ore exporters to resume operations. Above that, with increased parity in pellet exports, almost every manufacturer in East India have shifted their focus to global market. This has further led to increase in demand and freight charges.” said another trader and exporter based in Bhubhaneshwar.
Leave a Reply