The Hindu Business Line : Storm in a teu cup

A Japanese shipping line may have succeeded in pushing an Indian shipping line out of the business of handling shipments of Indian tea to a UK-based company, by quoting "attractive" rates but not without throwing up a lot of problems for itself at the same time. Inquiries reveal that the Japanese line is running short of containers at the inland container depot in Assam, causing concern to the shipper using the ICD for shipments to the UK.

The shortage, resulting in detention of rakes, is believed to have been caused by several factors. First, there is a general shortage of high cube containers insisted upon by the UK-based buyer. But, more important, the Japanese line refuses to maintain the stock of empty containers at the ICD on cost consideration.

True, there is a cost of maintaining idle containers, yet the Indian shipping line that served the UK firm last year, did maintain the stock to provide uninterrupted services to its customer. The Japanese line now blames the Container Corporation, responsible for transportation of empties from the Kolkata port to the ICD, for the present crisis but the railway subsidiary declines to accept it with supporting figures.

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