High ICTT Terminal handling charges hit exim business

A sharp increase in terminal handling charges (THC) at the International Container Trans-shipment Terminal (ICTT) here is adversely impacting the exim business of Kerala and other southern states.

THC is levied on shippers (exporters/importers) by shipping lines for the costs borne by them at the port of shipment or destination to move/handle containers. The charges  are fixed by the Tariff Authority of Major Ports (TAMP), an authority set up by the Government of India. TAMP periodically fixes the THC in consultation with the port users. Once the charges are fixed, service providers are not authorised to deviate from this.

According to exporters,  the TAMP-approved THC at Kochi  port is Rs 8,600 per container. However, steamer agents are charging Rs 18,500.

According to Anwar Hashim, president of Seafood Exporters Association of India (SEAI), the increase in THC is justified only if exporters get the benefits of an international terminal from the ICTT. However, due to the absence of a required draft, mother ships still evade the terminal, which is working just as a feeder port  even after  four months of commissioning. If the containers are directly routed to ports across the world, the exim community could benefit $350 on shipping charges per container on average and could save transportation time by a week. 

However, the containers from this port are still routed through Colombo port just as was the case with the earlier Rajiv Gandhi Container Terminal (RGCT). This is affecting the export of seafoods, according to SEAI.

Exporters also pay Rs 1,000-3,500 to shipping lines for providing Bill of Lading — a receipt given by the carrier after accepting the goods for shipment. It is to be provided like a railway receipt or transport receipt. Even the Bill of Lading Act and Carriage of Goods Act do  not mention that charges can be levied for providing the receipt. SEAI said 10-15 years ago there were no charges for giving this receipt. Then, till around 5-6 years ago, the service providers started charging a nominal fee of Rs 50-200. Now this  has gone up to Rs 3,500.

Justifying their stand, Santhoshkumar, president, Steamer Agents Association, said the TAMP had approved the increase in THC while the terminal was shifted to Vallarapadam.

The charges for electricity for reefer containers were now being charged from the shipping lines and this is being charged as THC from the shippers.  Earlier, this was charged by DP World, the operators of RGCT.

Power charges come to around Rs 8,000 per reefer container as DP World had enhanced the tariffs at the new terminal.  Charges for the Bill of Lading had also been enhanced due to the increase in expenditures like office expenses. He also said it had been decided to pay the power bills directly to DP World according to hours of use.