New Delhi: India's Directorate General of Shipping (DG Shipping) has directed ports to immediately ensure concessions for exporters with Gulf-bound stranded cargo, curbing procedural reimbursements or post-facto claims.
The apex maritime regulatory authority also red flagged higher war-risk insurance premiums levied on cargo, and instructed shipping lines to "transparently and proportionately" reflect the revisions in freight charges.
"We received complaints that terminal operators were not immediately passing on (waivers of) detention charges, ground rent, and reefer plug-in charges to exporters but they were giving them on reimbursement basis," said Mukesh Mangal, additional secretary in the Ministry of Ports, Shipping, and Waterways on Thursday.
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During an inter-ministerial briefing on West Asia related developments, Mangal asked shipping lines to transparently disclose war-risk premiums they are paying which they are using for levying higher container cargo charges.
"It has been observed that concessions granted by port authorities are not being uniformly passed on to exporters," read an April 8 circular by the DG Shipping.
Terminal operators are charging non-vessel operating common carriers (NVOCC) and on reimbursement, are passing on the concessional benefits. "This circuitous process delays the concession reaching the exporters," the regulator said.
"All concessions approved by Port Authorities shall be directly and transparently passed on to the concerned stakeholders, including freight forwarders and NVOCCs who in turn shall reflect the same to the exporters," DG Shipping said, cracking down on the current practice of routing such adjustments through procedural reimbursements or post-facto claims, which "is to be discontinued with immediate effect."
Ports have been made responsible for monitoring compliance at the terminal level to ensure the benefit of such concessions reaches the intended beneficiaries without delay.
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DG Shipping advised ports and terminal operators to "ensure strict compliance in order to maintain transparency in cost structures, protect exporter interests, and ensure operational continuity during the ongoing crisis."
Specific instances have been reported where "additional charges are being levied for diversion of cargo or discharge at alternate ports (including Back-to-Town consignments), without adequate documentation," the regulator said, directing that all additional charges imposed by shipping lines must be "formally documented, time and date stamped, and clearly quantified in monetary terms."
The apex maritime regulatory authority also red flagged higher war-risk insurance premiums levied on cargo, and instructed shipping lines to "transparently and proportionately" reflect the revisions in freight charges.
"We received complaints that terminal operators were not immediately passing on (waivers of) detention charges, ground rent, and reefer plug-in charges to exporters but they were giving them on reimbursement basis," said Mukesh Mangal, additional secretary in the Ministry of Ports, Shipping, and Waterways on Thursday.
Also Read: Ownership mandate in new Shipping Law may dampen GIFT city’s global ambitions
During an inter-ministerial briefing on West Asia related developments, Mangal asked shipping lines to transparently disclose war-risk premiums they are paying which they are using for levying higher container cargo charges.
"It has been observed that concessions granted by port authorities are not being uniformly passed on to exporters," read an April 8 circular by the DG Shipping.
Terminal operators are charging non-vessel operating common carriers (NVOCC) and on reimbursement, are passing on the concessional benefits. "This circuitous process delays the concession reaching the exporters," the regulator said.
"All concessions approved by Port Authorities shall be directly and transparently passed on to the concerned stakeholders, including freight forwarders and NVOCCs who in turn shall reflect the same to the exporters," DG Shipping said, cracking down on the current practice of routing such adjustments through procedural reimbursements or post-facto claims, which "is to be discontinued with immediate effect."
Ports have been made responsible for monitoring compliance at the terminal level to ensure the benefit of such concessions reaches the intended beneficiaries without delay.
Also Read: A toll for using Hormuz would be a 'dangerous precedent', UN's ship agency says
DG Shipping advised ports and terminal operators to "ensure strict compliance in order to maintain transparency in cost structures, protect exporter interests, and ensure operational continuity during the ongoing crisis."
Specific instances have been reported where "additional charges are being levied for diversion of cargo or discharge at alternate ports (including Back-to-Town consignments), without adequate documentation," the regulator said, directing that all additional charges imposed by shipping lines must be "formally documented, time and date stamped, and clearly quantified in monetary terms."
