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.