APM Terminals Pipavav pares terminal handling charges for containers by 25%

Revised charges are effective for vessels sailing from November 16 to December 31 this year

Amid the considerable trade imbalance due to severe shortage of containers for exporters, APM Terminals Pipavav port has reduced the terminal handling charges for empty containers by 25 per cent.

The reduction will support exporters adversely impacted by shortage of empty containers due to huge drop in imports.

The reduction for handling charges on tariff is effective for vessels sailing from November 16 to December 31, 2020.

According to the data from Ministry of Commerce and Industry, India’s exports during April-October 2020, fell by 19 per cent to $150.14 billion, while imports declined 36.3 per cent to $182.29 billion.

The country faced shortage of containers for exports as usually the containers that come in as imports are shipped out for exports.

However, because of significant fall in imports, shipping companies had cut capacity that impacted availability of allied transportation systems like trucks and containers. This resulted in shortage of empty containers hurting exporters as access to a container is now taking more than two-three weeks compared to maximum of 4-5 days earlier.

“Looking at the trade cycle adversely affected by the shortage of containers, we decided to assist the trade through reduction in handling charges of empty containers. I hope this will support exporters in getting easy access to empty containers and reduce the waiting period, thereby addressing the critical issue of container shortage," the release quoted Jakob Friis Sørensen, managing director at APM Terminals Pipavav as saying.

“With improvement seen in domestic trade, we believe the international trade tooshall pick up from the first quarter of next calendar year, thereby decongesting traffic at Port and improving the overall trade sentiment,” Sørensen said.