The Hindu Business Line : Vessel operators plan Kochi port congestion surcharge

PEEVED at the continuing congestion at the Kochi Port container terminal, vessel operators including mainline operators are planning to impose a `port congestion surcharge' on all trade with effect from November 1.

"We are forced to impose a surcharge as there has been no marked improvement in the performance in the gantry berth even after the measures initiated by the port to solve the crisis. The surcharge may be in the range of $100 per TEU as per the instructions from our Principals," said shipping sources.

However, the Principals wanted to call it `Kochi Port Surcharge' instead of congestion surcharge as it is being experienced only due to lack of initiative from the port side.

The sources said that ship operators have been losing heavily over the last few months due to long stay of vessels, which leads to loss of charter hire, berth hire, etc.

Though there was a welcome improvement in the terminal in the last week, the situation has deteriorated further in the last few days.

It was also pointed out by the sources that `shut out of vessels' from the gantry berth had gone up in the last few weeks, with an average cargo of 300-500 TEUs due to stack congestion in the wharf.

Seafood consignments to various destinations abroad have been the worst affected in view of the shut out sails affecting the contract delivery of exporters for the coming Christmas and New Year season in the US and UK markets.

The vessel operators had earlier decided to impose a surcharge from October 1. But this was postponed following the assurance from the management to take steps on a war footing to solve the crisis.

The average productivity in the terminal is currently 45-50 moves per gantry per shift, against 80 moves earlier.

According to sources, the entire stack in the wharf is full with 3,500 TEUs against the capacity of 1,500 TEUs.

However, there has been no reciprocal delivery against import arrivals of 1,000 plus TEUs due to shortage of equipment as well as lack of maintenance in the existing ones.

Moreover, the detention of iron scrap containers in the wharf by Customs authorities following the decision of the Union Government had also recently escalated the congestion in the terminal.

According to shippers, the management had also turned down their request to use private equipment in the terminal to sort out the ongoing crisis.

Likewise, the port's accounts department is still availing stack amendment and ground rent charges from containers that are lying in the wharf due to shut out sails even after the assurance from the management to waive such charges.