FedEx temporarily suspends shipments from China to India after DHL makes similar decision

Source:Global Times Published: 2020/7/2 12:19:41

FedEx Photo: IC

Major freight transporter FedEx announced it will temporarily suspend the shipping of goods originating from China to India, following a similar decision from DHL on June 26. 

"We're temporarily suspending pick-up service from China to India due to heavier volumes as a result of COVID-19. We are monitoring the situation closely and will resume our normal operations as the circumstances allow," FedEx said in a statement sent to the Global Times on Thursday. 

DHL Express India confirmed on June 26 that it is temporarily suspending the collection of import shipments from the Chinese mainland, Hong Kong and Macao due to recent delays in the customs clearance of shipments into India. The suspension, starting from June 26, will last for 10 days.

Media reports have said "100 percent" of imported goods from China to India are physically checked in the wake of the recent border clash, resulting in Indian ports piling up with Chinese goods. 

The Economic Times said physical verification means a thorough check of all filing papers, including bills of entry, invoices and valuations of the goods declared, which could delay clearance and add to costs for importers.

India's decision has also raised concerns among US manufacturers based in the country, which are worried about the repercussions on the supply chain and manufacturing, Bloomberg noted. 

Given the fact that China remains India's vital global supplier, getting rid of a reliance on Chinese goods would be hard to achieve for Indian companies. 

Take APIs as an example. CNBC said Indian customs officials started to issue orders to clear API shipments after Indian pharma companies raised concerns and the delays began to cause extra losses for Indian importers. 

Total bilateral trade between China and India reached 639.5 billion yuan ($90.35 billion) in 2019, up 1.6 percent year-on-year. China's exports to India stood at 515.6 billion yuan, up 2.1 percent, and India's exports to China totaled 123.9 billion yuan, down 0.2 percent year-on-year, data from China's General Administration of Customs (GAC) showed.

India's trade deficit with China was 391.7 billion yuan in 2019, according to GAC data.

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