Government Announces Measures to Resolve Shipping Woes

• 23 Sep 2024

Source: PIB

An inter-ministerial meeting led by the Union Minister of Commerce & Industry addressed concerns over rising freight costs, container shortages, and port congestion. 

• Key Decisions from the Meeting: Significant reductions in shipping costs with measures like allowing free storage of empty containers at Jawaharlal Nehru Port Authority (JNPA) for up to 90 days.
  • JNPA in Navi Mumbai is a premier container port, handling about 50% of India's containerized cargo. It ranks 26th among the world's top 100 container ports and connects to over 200 global ports.
  • Container Corporation of India (CONCOR), a Navratna Company, has reduced loading, handling, and storage fees.

  • Shipping Corporation of India (SCI) announced chartering of ships to increase container capacity by 9,000 twenty-foot equivalent units (TEUs), along with plans to acquire five more container ships.

  • Faster custom clearances through simultaneous screening of two 20 ft containers at ports, implemented by the Central Board of Indirect Taxes and Customs (CBIC).

  • Private container yards will now have to register with GST authorities to curb illegal profiteering and prevent cash transactions.

• Freight forwarder associations, and exporters expressed satisfaction, stating that the government’s measures will ease logistical bottlenecks and enhance trade flow.

Read more: Container Port Performance Index (CPPI) 2023