Nhava Sheva congestion, surcharges vex shippers
Shippers moving cargo through India's container gateway have been plagued by slow port operations and congestion surcharges, according to reports.
The Nhava Sheva port complex, near Mumbai, handles more than half the country's containerized goods, but it has operated at levels past design capacity for the last couple years as a plan to build a fourth terminal has stalled.
In the meantime, dockworkers unions have reportedly instituted a 'go-slow' plan at the port, worsening congestion and prompting some carriers to warn they might reject export shipments for two weeks worth of calls to clear cargo backlogs.
The situation has led to carriers charging congestion fees for months. But a prominent shippers' group argues there is little congestion in two of the three terminals.
'There is no congestion in the port,' R. Venkatesh, vice president of the Western India Shippers’ Association and managing director of the Mumbai-based freight forwarder Clearship, told the Economic Times. 'A situation is existing in the NSICT (operated by DP World) terminal, which is more caused by severe lack of storage yard, combined with problems on evacuation of boxes. This terminal handles perhaps the most in terms of volume amongst the three terminals in JNPT with berthing windows back to back. The situation further gets aggravated when vessels miss their berthing and sailing slots.'
Venkatesh said the cries of congestion and prolonged assessment of surcharges was merely a way for carriers to increase revenue.
'These surcharges are revenue heads and not surcharge heads,' he said. 'To say that this is because the industry has had a seven-month run of losses is no justification. As most of the carriers have reported record profits this year will they subscribe to a negative surcharge to pay back the trade?'
Nhava Sheva congestion, surcharges vex shippers
