Shipping lines double surcharge at 2 key Chennai terminals
Importing materials in containers through Chennai port's private container terminals has become costlier with shipping lines doubling the ‘Chennai trade recovery surcharge' to $130 for a 20-foot equivalent unit (TEU) from last Friday, The Hindu Business Line reports.
This is because of the delay in container vessels getting berths due to severe congestion.
For exports too the surcharge has been increased to $65 for a TEU from $35, according to industry sources.
The shipping lines said that situation at the two terminals operated by DP World and PSA Singapore, respectively, has not improved in the last few days leading to delays in arrival and departure of their vessels.
As of Friday morning, six container vessels were waiting outside the port's anchorage waiting for berth.
A large shipping line even diverted two of its vessels to Colombo from where boxes were shipped to Chennai in feeder vessels.
Infrastructure bottlenecks
The opening of gate 2A at the Chennai port has not improved the situation at the two terminals. While the inventory at DP World Chennai is around 11,000 TEUs, it is nearly half at the Chennai International Terminal, sources said.
An official of one terminal said infrastructure outside the port has not improved for speedier evacuation of containers.
The average evacuation at DP World Chennai used to be around 1,800 boxes a day but dropped to around 1,200 due to bottlenecks outside the port.
It is a similar situation at the other terminal.
Festive season
Mr Walter D'Souza, Regional Chairman, FIEO Southern Region, said as Christmas season is approaching, exporters fear there could be a huge back-log during the festival season.
Last Christmas, the Chennai port temporarily suspended export cargo clearance for over a week to ease the congestion. As there is no improvement in infrastructure, a similar crisis during the current season is inevitable unless necessary steps are taken by the stakeholders, he said.
Frequent strikes
There are frequent strikes by trailer operators and other supporting services, resulting in traffic congestion in and around the port and exporters do not know when the cargo will reach the port and whether he can ship his consignment in the scheduled vessel. Exporters are forced to pay additional charges to the trailers due to detention at port, and the charges imposed by the shipping lines will make export unviable, he said. Mr D'Souza requested the Commerce Ministry to intervene in this matter urgently, call for a meeting of all stakeholders immediately and outline a road map for a short term and medium term solution to the Chennai port problems.
This is because of the delay in container vessels getting berths due to severe congestion.
For exports too the surcharge has been increased to $65 for a TEU from $35, according to industry sources.
The shipping lines said that situation at the two terminals operated by DP World and PSA Singapore, respectively, has not improved in the last few days leading to delays in arrival and departure of their vessels.
As of Friday morning, six container vessels were waiting outside the port's anchorage waiting for berth.
A large shipping line even diverted two of its vessels to Colombo from where boxes were shipped to Chennai in feeder vessels.
Infrastructure bottlenecks
The opening of gate 2A at the Chennai port has not improved the situation at the two terminals. While the inventory at DP World Chennai is around 11,000 TEUs, it is nearly half at the Chennai International Terminal, sources said.
An official of one terminal said infrastructure outside the port has not improved for speedier evacuation of containers.
The average evacuation at DP World Chennai used to be around 1,800 boxes a day but dropped to around 1,200 due to bottlenecks outside the port.
It is a similar situation at the other terminal.
Festive season
Mr Walter D'Souza, Regional Chairman, FIEO Southern Region, said as Christmas season is approaching, exporters fear there could be a huge back-log during the festival season.
Last Christmas, the Chennai port temporarily suspended export cargo clearance for over a week to ease the congestion. As there is no improvement in infrastructure, a similar crisis during the current season is inevitable unless necessary steps are taken by the stakeholders, he said.
Frequent strikes
There are frequent strikes by trailer operators and other supporting services, resulting in traffic congestion in and around the port and exporters do not know when the cargo will reach the port and whether he can ship his consignment in the scheduled vessel. Exporters are forced to pay additional charges to the trailers due to detention at port, and the charges imposed by the shipping lines will make export unviable, he said. Mr D'Souza requested the Commerce Ministry to intervene in this matter urgently, call for a meeting of all stakeholders immediately and outline a road map for a short term and medium term solution to the Chennai port problems.