Congestion Levy At Chennai Port To Be Dropped
The controversial $100 per twenty feet equivalent unit containers (TEU) congestion levy on exporters being charged by shipping lines operating in the Chennai port is likely to be withdrawn soon, according to sources in the shipping line and feeder operator community.
Besides a loss of more than Rs 12 crore to exporters, the tussle between the Chennai Port Trust (CPT), exporters and shipping lines has also indirectly led to the ouster of the then port trust chairman I V Manivannan.
``Talks are on among feeder operators in Singapore and we expect the levy to be withdrawn,'' an influential shipping line in Chennai said. ``Feeder operators have already made an in-principle decision to withdraw the congestion levy. The decision is likely to be formalised in a week's time,'' a leading feeder operator said.
The move to do away with the surcharge comes in the wake of the Chennai Port Trust clearing all the congestion and bringing down the turnaround time. ``There was not even a single ship waiting to be berthed today morning. Only two ships are expected to berth later in the day,'' a senior port official said. ``Where is the need for a congestion levy when the port is clear ?'' he quipped.
If the congestion levy is withdrawn, a month-long tussle between the Chennai port, exporters and shipping lines will come to an end.
Federation of Indian Export Organisations and the Southern India Chamber of Commerce and Industry had sought the intervention of the ministry of commerce and surface transport in the matter. The Confederation of Indian Industry had even commissioned a study on how to de-congest the Chennai port.
Trouble first started when senior tug masters at the Chennai Port Trust went on a 12-day strike in the mid-May this year, crippling the movement of ships. in the port.
Feeder operators imposed the $100 per TEU congestion levy as they could not meet the deadlines of the main shipping lines that docked at the Singapore and Colombo ports due to the inordinate delay in berthing, loading and unloading of container at Chennai.
Even after the strike was called off, the backlog of ships waiting to berth built up. At one point, over 25 ships were waiting to be berthed.
Things improved towards the end of July and the pre-berthing delay at the Chennai port has more or less been eliminated now.