JSL to take 'breakbulk' route for exports amid Red Sea crisis

Jindal Stainless (JSL) is exploring the breakbulk method for its export shipments at a time when the unavailability and high costs of containers is pushing up costs, managing director Abhyuday Jindal said. "In stainless steel we have to be a little more cautious as compared to carbon steel, but we are exploring that," he said in an interaction post the company's earnings for the June quarter.

The country's largest producer of stainless steel aims to export 10-15% of its total produce in the current fiscal, and counts US and Europe among its key geographies. Its exports in the June quarter were at 10%, down from 17% in the comparable period a year ago. This was largely on account of growth remaining stagnant in US and Europe.

"The ongoing Red Sea issue extended transit times and freight cost from India to the western markets, and paucity of containers further affected exports," the company said. The cost of containers has risen as much as 300% in some segments and have doubled on an average for several areas, Jindal said.


"There is a substantial benefit in costs, but our major concern is the impact on quality because stainless steel goes into aesthetic applications," he said. The company has already sent one or two shipments through the breakbulk method, and has received a go-ahead from its clients. It will now be pushing up transportation through this route in a larger way from Q2.