MUMBAI (ICIS)–The Indian government has asked
shipping companies to desist from imposing
container detention charges on all shipments,
while it now allows transportation of all goods
based on newly released guidelines on the
implementation of the country’s 21-day lockdown
amid the coronavirus pandemic.
But most firms are facing massive manpower
shortage due to the lockdown, and this will
also pose problems in loading/unloading of
goods given its labour-intensive nature.
Trucks on the road have also been significantly
reduced, while ancillary services such as
repair shops and eateries along the routes have
been shut down.
“In order to maintain proper supply lines at
the Indian seaports the shipping lines are
advised not to impose any container detainment
charge on import and export shipments for the
period from March 22, 2020 to April 14, 2020
(both days inclusive),” India’s Directorate
General of Shipping said on Sunday.
Detention charges refers to fees imposed on
importers and exporters for use of containers
outside of the terminal or depot beyond the
free time arrangement under contract, which is
usually between three to 10 days excluding
Sundays and non-working days. The charges vary
depending on the size and type of the cargo.
Containers are either owned or are leased by
shipping lines for their customers (shippers or
merchants) for the safe and fast door-to-door
transport of their goods.
“This decision is purely [a] one-time measure
to deal with present disruptions caused by the
Covid-19 [coronavirus disease] outbreak,” the
statement said, adding that during this period,
shipping lines were also advised not to impose
any new or additional charges.
India’s total coronavirus infections as of 29
March stood at 979, with 25 deaths, according
to data from the World Health Organisation
(WHO).
“The advisory will help in smooth functioning
of trade and maintenance of supply chain in the
country,” it said.
Global container shipping company Maersk Line
announced waiver of container detention charges
on all its import shipments into India up to 7
April, according to news agency the Hindu
BusinessLine.
TRANSPORTATION OF ALL GOODS
ALLOWED
To smoothen operations during the 21-day
lockdown from 25 March, the government will
allow transportation of all goods without
distinction of essential and non-essential
items.
Exporters would be allowed to ship their goods
without the mandatory certificate of origin,
according to the Ministry of Commerce, to help
clear backlog of goods which could not be
shipped out due to lack of requisite documents.
“These certificates will be issued
retrospectively by concerned Indian agencies
after they open their offices,” it said in a
statement.
Importers would also be allowed to take in
goods without certificate of origin from its
free trade agreement (FTA) partner countries,
the commerce ministry said.
Fertiliser firms are also expected to benefit
from the government’s recent decision to exempt
all activities involved in the manufacture and
packaging of fertilizers from its lockdown
order.
“Indian Farmers Fertilizer Cooperative (IFFCO)
welcomes the decision by the government of
India for allowing the functioning of
fertiliser units,” group managing director U S
Awasthi said in a Twitter post.
While the manufacture of fertilizers has been
categorized under essential commodities,
companies were finding it difficult to
transport and offload goods due to shortage of
labour.
“Interstate movement of trucks is also a major
bottleneck. However, we are trying to get
support from local administrations,” said a
source at a Mumbai-based fertilizer firm.
This decision by the government is timely as
the next cropping season is expected to begin
in the next couple of months, he added.
The recent directive from the government has
exempted markets, procurement agencies as well
as intra- and inter-state movement of
farm-related goods and implements.
REFINERIES, PLASTIC PACKAGING PLANTS
RUN AT REDUCED RATES
The 21-day lockdown in India, which was
announced on 25 March, has initially allowed
for the production and supply of essential
commodities only.
The move prompted several industries to shut
operations and some ports in the country to
declare force majeure.
Most Indian refiners have cut production and
stopped operations at crackers and
petrochemical facilities following the
countrywide lockdown.
Indian Oil Corp (IOC) has cut crude processing
at its refineries by over 30% as local demand
for refined fuel has been hit.
“In the wake of the COVID-19 outbreak in the
country, the demand for petroleum products like
petrol, diesel, fuel oil, bitumen, etc, have
reduced substantially,” it said.
Unavailability of manpower to load cargoes on
to trucks and unload them at processor units
prompted producers to suspend all
dispatches in the country.
Plastic converters and plastic packaging
producers have also reduced or partially shut
down operations due to lack of manpower.
“We are finding it difficult to get raw
material for production and also send out our
finished products,” said a source from
Mumbai-based producer of biaxially oriented
polyethylene terephthalate (BOPET).
“While the government has declared that
movement of goods will not be hampered, it has
not yet percolated down to the local levels,”
the source said.
India’s Ministry of Shipping in a notice last
week has allowed ports to declare force majeure
due to the lockdown.
Private ports have mostly made the declaration,
including Adani, which runs 10 ports, namely:
Dhamra, Hazira, Tuna, Dahej, Mundra,
Kattupalli, Vizhinjam, Visakhapatnam, Ennore
and Mormugao, according to newswire
Bloomberg.
The ports of Krishnapatnam port, Gopalpur,
Karaikal and Gangavaram have also declared
force majeure, Bloomberg reported.
Gateway Terminals India, which is the biggest
container terminal by volume in the country,
declared a force majeure on 27 March. It
operates the container terminal at the
Jawarharlal Nehru Port (JNPT) near Mumbai,
according to the Hindu BusinessLine.
Focus article by Priya Jestin
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