Decisions taken by Shipping and Railways Ministries today will bring down shipping costs: Goyal

Railway Board Chairman and CEO, Shri Satish Kumar, confirmed a reduction in the charge for storing containers beyond the 90-day period, from Rs. 3,000 to Rs. 1,500.

An inter-ministerial meeting chaired by Union Minister of Commerce & Industry, Shri Piyush Goyal, was held today in New Delhi to tackle the pressing issues of rising freight costs, shipping delays, container shortages, and port congestion affecting exporters. The meeting saw participation from key ministries including Ports, Shipping and Waterways, Railways, Civil Aviation, and Finance, along with various stakeholders such as exporters, shippers, and shipping lines. Key Decisions and Announcements:

Container Storage and Handling Fees:

The Container Corporation of India (CONCOR) has announced a significant policy change: empty containers can now be stored free of charge for up to 90 days at the Jawaharlal Nehru Port Authority (JNPA). Additionally, handling charges have been substantially reduced, with storage fees for 40 ft containers cut from Rs. 9,000 to Rs. 2,000, and for 20 ft containers from Rs. 6,000 to Rs. 1,000.

Railway Board Chairman and CEO, Shri Satish Kumar, confirmed a reduction in the charge for storing containers beyond the 90-day period, from Rs. 3,000 to Rs. 1,500.

Shipping Capacity Enhancement:

The Shipping Corporation of India (SCI) is set to charter container ships to increase container capacity by 9,000 twenty-foot equivalent units (TEUs) immediately. SCI will also purchase five additional container ships to further enhance cargo handling capabilities. All associated charges will now be included in the delivery order to streamline costs for shippers.

Port Capacity and Efficiency Improvements:

The Ministry of Ports, Shipping and Waterways, represented by Secretary Shri T.K. Ramachandran, reported an increase in port capacities by 2.3 million TEUs. Private container yards are now required to register with GST authorities and must cease accepting cash payments to combat illegal profiteering.

JNPT Chairman Shri Unmesh Sharad Wagh outlined measures to eliminate port congestion, including minimizing traffic delays and implementing simultaneous container scanning to expedite clearances and reduce turnaround times.

Air Cargo and Customs Processing:

The Civil Aviation Secretary committed to accelerating air cargo movement and reducing turnover times.

Revenue Secretary Shri Sanjay Malhotra announced that the Central Board of Indirect Taxes and Customs (CBIC) will expedite customs clearances by screening two twenty-foot containers simultaneously.

Support Infrastructure:

A new multidisciplinary help desk will be established to support exporters, addressing their concerns and facilitating smoother export processes.

Stakeholder Reactions: Representatives from the Federation of Indian Export Organisations (FIEO) expressed their approval of the measures, acknowledging that the immediate actions taken by the government will alleviate the congestion, delays, and increased freight costs, thereby improving space availability on container ships.

Ongoing Monitoring: Shri Goyal concluded the meeting by emphasizing the government's commitment to continuously monitor the situation, with the next review scheduled for the end of October. He praised the collaborative efforts of various departments, which have collectively contributed to reducing shipping costs, enhancing container availability, and improving port efficiency.

The meeting marked a decisive step towards addressing the logistical challenges faced by exporters in light of the current geopolitical and economic conditions, promoting a more efficient and trust-based working environment for export processes.