Due to increasing tension in West Asia, many cargo shipments going from India have got stuck. In view of this situation, the government has asked 12 major ports of the country to consider waiving or reducing some of the charges levied on such shipments. According to the news, the Ministry of Port Shipping and Waterways on Friday directed the port authorities to consider the requests for reduction or waiver of charges like storage rent, reefer plugging fee (cold container charge) and ship shifting expenses. Shipping Secretary Vijay Kumar, after a virtual meeting with industry people, said that ports should not impose additional charges during the current disruption.
Additional arrangements for stranded cargo
According to the report, ports have also been told that cargo bound for West Asia may be allowed to be stored as transshipment cargo for the time being. Additionally, additional storage space should also be made available if needed. Apart from this, facility can also be provided to send the export cargo lying at the ports back to the domestic market in collaboration with the customs authorities.
Priority for perishable goods
The government has also asked the ports to handle perishable cargo on priority so that it does not get spoiled. Besides, it has also been asked to increase the capacity of fuel supply (bunkering), so that ships can get sufficient fuel when needed.
Fear of shortage of containers and ships
This step has been taken after concerns raised by shipping companies, exporters and oil sector government companies. People associated with the industry fear that congestion at ports may increase in the next two to three weeks and there may also be a shortage of containers. It was also suggested in the meeting that more foreign flagged ships should be allowed to carry domestic cargo, so that the problem of shortage of ships and containers can be reduced and the increasing freight traffic can be handled.
Discussion on increasing insurance premium also
Meanwhile, Director General of Foreign Trade (DGFT) told the people associated with the industry that talks are going on with insurance companies, General Insurance Council and Export Credit Guarantee Corporation of India regarding the problem of increase in insurance premium due to the crisis. Whereas Reserve Bank of India has held a meeting with Indian Bank Associates and State Bank of India. Banks operating in West Asia have been asked to provide work-from-home facilities to their employees, so that the work of exporters, importers and shipping companies is not disrupted.