The Federation of Indian Export Organisations (FIEO), the apex body for exporters in the country, said on Tuesday that the suspension of operations at Mumbai port and JNPT following collision of two ships last week would impact about $4 billion of trade cargo , if the situation is not addressed by the weekend.
Pointing out that JNPT and Mumbai port handle around $200 billion of trade cargo every year, including export and import, FIEO has said this would mean that if the disruption of container traffic continues for a week, the impact would be on trade cargo worth $4 billion.
The FIEO President, Mr A. Sakthivel, said in a statement that since each day's delay at the port costs about 0.5 per cent of the value of cargo, Indian importers and exporters would suffer a loss of $20 million a week.
“The reports that we have got is that JNPT and Mumbai port, which account for over 60 per cent of the container traffic, are virtually closed. Sooner or later, traders may be asked to pay the demurrage, detention and other charges like congestion charges for no fault of theirs. To pre-empt such a situation, we have approached the Government,” FIEO Director-General Mr Ajay Sahai, told Business Line.
He said Mr Sakthivel has already written to the Shipping Secretary requesting him to intervene and address the concerns of exporters. Mr Sakthivel urged the Government to ensure that exporters are not asked to pay demurrage, detention and other charges arising from suspension of operation at JNPT and Mumbai port.
FIEO said that the stoppage of movement will impact back-end operations both at production level in factories and at JNPT which is already facing congestion due to monsoon. Mr Sakthivel suggested for co-ordinated action on war footing to bring back ports to normal operations.
Pointing out that JNPT and Mumbai port handle around $200 billion of trade cargo every year, including export and import, FIEO has said this would mean that if the disruption of container traffic continues for a week, the impact would be on trade cargo worth $4 billion.
The FIEO President, Mr A. Sakthivel, said in a statement that since each day's delay at the port costs about 0.5 per cent of the value of cargo, Indian importers and exporters would suffer a loss of $20 million a week.
“The reports that we have got is that JNPT and Mumbai port, which account for over 60 per cent of the container traffic, are virtually closed. Sooner or later, traders may be asked to pay the demurrage, detention and other charges like congestion charges for no fault of theirs. To pre-empt such a situation, we have approached the Government,” FIEO Director-General Mr Ajay Sahai, told Business Line.
He said Mr Sakthivel has already written to the Shipping Secretary requesting him to intervene and address the concerns of exporters. Mr Sakthivel urged the Government to ensure that exporters are not asked to pay demurrage, detention and other charges arising from suspension of operation at JNPT and Mumbai port.
FIEO said that the stoppage of movement will impact back-end operations both at production level in factories and at JNPT which is already facing congestion due to monsoon. Mr Sakthivel suggested for co-ordinated action on war footing to bring back ports to normal operations.