INDORE: Hundreds of containers full of custom products stuck in transshipment due to the ongoing Russian-Ukrainian war could end up as unsold stock resulting in huge losses for domestic exporters.
While shipping lines have advised exporters to divert containers en route to Ukraine and Russia to nearby ports or recall them at the shipping destination due to port closures, exporters have expressed concern about how to use specially labeled stocks for Ukrainian and Russian buyers.
Indore, one of the main commercial centers of Madhya Pradesh, exports earthmoving equipment, packaging films, pharmaceuticals, waste paper and foodstuffs, among others, to Ukraine and Russia.
A senior executive working as an export operations manager at an earth-moving equipment company wishing not to be named said: “About 70 containers carrying earth-moving equipment to Ukraine, Russia and Belarus are trapped in the sea. Black because of the war. We were forced to divert containers to other destinations, but now you know what to do with those unsold goods? This will cause us enormous losses.
Exporters said they were even willing to sell blocked goods at lower prices in other countries to cut losses.
Sunil Maheshwari, a manufacturer and exporter of paper disposal products to Ukraine, the European Union and Gulf countries, said, “The paper cups we export to Ukraine are very large in size because that it is a cold country where tall cups are used by restaurants, but these products will be difficult to sell in other markets. We collect our products because there is no alternative to these personalized products. Additionally, all mugs are labeled with the buyer’s logo. »
Most exporters with business in Ukraine and Russia are now trying to find alternative markets for their stranded goods.
Narayan Thapa, associate vice president of a packaging film manufacturing company exporting around 20 containers each month to Ukraine and Russia, said: “We have unloaded around 50 containers at the port of Constanta in Romania and interrupted loading ready containers at Nhava Sheva port in Maharashtra. We have offices in other countries and we will now try to sell these films in other markets, but it will be difficult to use 100% of the products blocked in these regions.