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T.E. Raja Simhan

Chennai, Dec. 20 The Chennai Feeder Operators operating container ships in and out of Chennai will increase the congestion surcharge to $175 a TEU (twenty foot equivalent unit) from $100 a TEU. The revision will take effect from December 21, according to a trade notice issued by the CFOs.

The operators in the Singapore-Malaysia/Chennai said that despite all efforts, including constant engagement with the relevant authorities, the situation at Chennai has deteriorated further – although “we could appreciate it was partly weather induced.”

The operators have no alternative but to increase the surcharge.

The operators will monitor the situation at Chennai and the surcharge will be revised as and when necessary, the notice said.

The operators imposed the $100-a-TEU surcharge from December 7 due to “inordinate delay in vessel turnaround and underutilisation of vessels leading to increase in port stays.”

The participating feeder operators in the sector are Advance Container Lines, Samudera Shipping, Bengal Tiger Line, Sea Consortium and RCL Feeder.

The Southern India Chamber of Commerce and India said at a time when exporters are suffering with depreciation of US dollar, the surcharge will have a major impact on their margins.

The chamber sought immediate withdrawal of the surcharge.

Even if the surcharge is imposed, it should be done with a scientific formula that will reflect the nature and quantum of surcharge.

The feeder operators should impose the surcharge on the creator of the congestion – the Chennai Container Terminal – instead of holding the trade to ransom.

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