Pandemic shrinks containerised exports by 34%
During 2020, exports contracted in the first half and increased in the second half, consequently posting a full-year marginal growth of under 1% as compared to 2019.
Mumbai: FOR Indian trade, 2020 was a year dominated by unprecedented challenges, irregular manufacturing and buying patterns, disrupted trade environments and lack of predictability, Maersk report said on Friday.
With the Covid-19 pandemic spreading across the world in a staggered manner and in varying proportions, the impact on containerised trade was felt the most in Q2 2020 when exports contracted by 34 per cent. As societies began to find ways to coexist with Covid-19, trade started recovering in the second half. Exports ramped up sharply in Q3, not only recovering from Q2 slump, but even increased by 14 per cent year on year, however the economic impact on consumers led to substantially lower imports, which dropped by 28 per cent as compared to the same period of 2019. The last quarter of the year showed growth in both imports and exports, thus making solid strides towards returning to normalcy. The demand for Indian exports across multiple categories continues to remain exceptionally strong, much of it driven by consumer demand in North America and Europe.
Steve Felder, Managing Director, Maersk South Asia, said, "Despite unprecedented challenging conditions, stakeholders across supply chains - from manufacturers to consumers, from government bodies to logistics enablers - all stood up cautiously to fight the pandemic. Without the contribution from all the moving parts in the complex machinery of global trade, the path back to normalcy would not have been possible." During Q4 of 2020 (October to December), Indian containerised trade grew 13.2 per cent as compared to the same period in 2019. This was the first time in the year when both exports and imports grew in a quarter. Exports from India had shown a V-shaped recovery since mid-Q3, while imports had remained subdued for a long time owing to low demand in the market. In Q4, this trend changed notably, with exports stabilizing at a high level and imports bouncing back significantly by 36.3 per cent over the previous quarter, thus moving the needle for overall trade recovery.
During the year, exports contracted in the first half and increased in the second half, consequently posting a full-year marginal growth of under 1 per cent as compared to 2019. Imports delivered a full-year 14 per cent contraction as compared to 2019.