Congestion Levy In Chennai Port Scrapped

Exporters in Chennai heaved a sigh of relief as the controversial $100 per TEU congestion levy being charged for more than a month in the Chennai port was finally scrapped yesterday.

A group of eight leading feeder operators in Chennai, who were collecting the congestion surcharge from exporters, unanimously agreed to withdraw the levy.

Berth waiting at Chennai Port has improved over the last 10 days. So, the Chennai Feeder Operators have unanimously agreed to withdraw the congestion surcharge on all laden container movements from Chennai.

Advance Container Line, APL (Feeder Dept), Bengal Tiger Line, Integrated Container, KPB Priority, Orient Express/Shreyas Shipping, Sea Services, and X-Press Container are the eight feeder operators who have withdrawn the surcharge.

 

Exporters in Chennai, who are estimated to have lost around Rs 12 crore through this levy, have welcomed the lifting of the surcharge.

``The feeder operators were also losing as we were diverting our shipments to other ports. They had no choice but to scrap the levy,'' one exporter remarked.

According to sources at the Chennai Port Trust, the congestion surcharge was one of the reasons for the ouster of the former Port Trust Chairman I V Manivannan. The new port trust chairman Machendranathan was not in the city and was not available for comment.

A 12-day senior tug masters strike at the port in mid-May this year had completely crippled the movement of ships. This prompted feeder operators to impose the congestion levy on shipping lines due to the inordinate delay in berthing.