Mumbai: The Directorate General of Shipping has directed port authorities and terminal operators to immediately pass on concessions to exporters affected by their stranded shipments to West Asia.
On March 7, the Shipping, Ports and Waterways Ministry proposed that ports may consider requests regarding reduction, waiver or remission of charges, including change of vessel charge, and also rolled out a standard operating procedure (SoP) for them to deal with issues arising from the West Asia crisis.
"It has been observed that concessions granted by Port Authorities, particularly relating to detention charges, ground rent, reefer plug-in (connected load), and similar terminal charges are not being uniformly passed on to the exporters and the terminal operators are charging the Non-Vessel Operating Common Carriers (NVOCC) and on reimbursement are passing on the concessional benefits," DGS said in its April 8 advisory.
This circuitous process delays the concession reaching the exporters and is to be remedied suitably, it said.
As part of these remedial measures, DGS said all concessions approved by port authorities and terminal operators to authorities will be directly and transparently passed on to the concerned stakeholders, including freight forwarders and shipping intermediaries, who, in turn, will reflect the same to the exporters.
DGS also said that the current practice of routing such adjustments through procedural reimbursements or post-facto claims will be discontinued with immediate effect.
Port authorities will be responsible for monitoring compliance at the terminal level to ensure that the benefit of such concessions reaches the intended beneficiaries without delay, as per the advisory.
Ports and terminal operators have also been advised to ensure strict compliance with such measures to maintain transparency in cost structures, protect exporter interests and ensure operational continuity during the ongoing crisis.
"Specific instances have been reported where additional charges are being levied for diversion of cargo or discharge at alternate ports (including Back-to-Town (BTT) consignments), without adequate documentation," DGS said.
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In this regard, it said all additional charges imposed by shipping lines must be formally documented, among others. This is critical to ensure that exporters are able to avail claims under the RELIEF Scheme.
In light of the evolving situation, the war risk premium being levied on cargo has undergone changes which may not be fully aligned with its earlier circular on the issue, DGS said.
Accordingly, the matter is being taken up with insurance providers, it added.
Source Name4 : Economic Times