Govt. steps in to unclog exporters’ shipping woes

Union Minister of Commerce and Industry, Piyush Goyal.
| Photo Credit: ANI

In a bid to address emerging logistical challenges to foreign trade, including container shortages, shipping delays and rising freight costs, the Centre on Thursday announced a slew of interventions to bring down shipping costs, improve the availability of empty containers, expedite export consignments’ evacuation and minimise congestion at ports.

Free storage of empty containers in the Jawaharlal Nehru Port Authority yard upto 90 days with a reduction in loading, handling and berthing charges, and a new multi-disciplinary help desk for exporters, are among the measures formulated at an inter-ministerial parley led by Commerce and Industry Minister Piyush Goyal.

The Central Board of Indirect Taxes and Customs will ensure that custom clearances at ports will be expedited by simultaneous screening of two twenty-feet containers, Revenue Secretary Sanjay Malhotra said. The Civil Aviation Ministry has talked to airport operators in Delhi and Mumbai to address cargo congestion in a time-bound manner, while the Shipping Ministry is increasing container handling capacity at ports.

“The Shipping Corporation of India has started one container ship with 9,000 tonne capacity, and we are going to purchase additional five second-hand container vessels to increase our container capacity in the country,” Shipping Secretary T.K. Ramachandran said.

Noting that geopolitical tensions like the Red Sea Crisis, ongoing wars and its impact on international trade warrant special attention, Mr. Goyal said the logistics situation will be monitored regularly and a review meeting is planned at the end of October.

Federation of Indian Exporters’ Organisations (FIEO) director general Ajay Sahai clarified that that there is no shortage of containers per se, but specific varieties of containers maybe in short supply.

“The real issue is lack of space on the ship, because of which a perception is coming in the exporting community that there is a shortage of containers because shipping lines only allocate a container if there is space available,” he said.

“The good thing is that the freight rate has been coming down and the indications are that in the next six months, freight rates will be further softening, which will also help in propelling exports,” Mr. Sahai said.

Published – September 19, 2024 10:31 pm IST

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