The Hindu Business Line : Kochi feeder operators plan surcharge on exim trade

Kochi, Sept 8 The feeder operators in Kochi port have threatened to impose a ‘trade surcharge’ on exim trade unless the congestion in the container terminal returns to normal in the next few days.

The feeder operators in the Kochi-Colombo-Jebel Ali sector in a notice to the trade said that the average vessel productivity has deteriorated to 55-60 moves a shift for imports and the port stay of vessels have been prolonged to five days, with berth waiting time averaging three days and 2-3 days alongside the berth.

On the assumption that the yard congestion will soon be brought under control through various measures, operators pointed out that the conditions still remained in the same position — which was directly affecting the vessel productivity.

If such a situation continues unabated, feeder operators will have no other alternative but to take all steps that may be necessary to offset the increased cost of operations at Kochi.

Procedures in place

When contacted, Mr Elvis D’Cruz, Terminal Manager, DP World, Kochi, said the congestion has brought under control now by taking adequate steps for speedy clearance of import cargo. All procedures are in place to evacuate boxes to outside CFS and operations in the terminal are back to normal in the last few days with no vessels waiting for berth. However, the company will take effective steps to avoid similar situations in the future.

“At this point of time, we do not see any need for congestion surcharge to be levied from the trade as the current situation in the terminal is under control,” he added.

Expressing concern, sources in the trading community said the proposed move to impose surcharge would be detrimental to cargo movements through Kochi.

The cost of exports/imports in Kochi is on the higher side compared to neighbouring ports. Besides, the threat of flash strikes is also affecting the port’s reputation.

Considering this, it would be helpful if the feeder operators could defer the move of surcharge for the time being, the sources said.

They also requested the terminal operator to take steps to provide sufficient lighting at the terminal as asked by Customs, to give permission to examine the cargo after office hours and night hours to facilitate speedy clearance of cargo.

Marine exports

Sources in the seafood exporting community said that any increase in freight at this point of time is highly damaging to marine exports.

Already some shipping lines have charged a congestion charge of $150 due to congestion at Jebel Ali and Colombo.

Apart from this, exporters are already incurring additional operation cost in production line due to shortage of ice, hike in power charges, shortage of storing space, holding of containers at factory site in trailers, delay in movement of trailers in wharf.

The unit production cost had increased beyond limit. The increased production benefit, during season, is passing on to other cost factors not to the benefit of the industry, they said.