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CONCOR extends rebate on movement of containers to help North Indian Exporters

In a major decision to help the exporters in north India to get hold of empty containers the state owned container corporation of India has introduced a volume based rebate on rail freight from September one for repositioning of empties. The decision would esnure sufficient availability of empty containers at North Indian hinterland Inland container depots so that they can boost exports and cut logistics costs

The state-run company owned by the Railways also announced that the existing scheme for repositioning of empty containers from gateway ports to hinterland terminals with a rebate of 50 per cent on rail freight will continue till March 31.

Repositioning of empties extended from portside concor’s C FSs to ICDs

The scheme has been extended to the repositioning of empties from portside Concor container freight stations (CFSs) to ICDs also for export purposes, the company said in a trade notice.The exporters are urging the government to extend the time limit for keeping empty containers in the country without paying import duty from 6 months to 12 months.

At present, empties can be kept in India for six months,  a convention followed by the Customs Department. Shipping lines take them out just before the expiry of six months to avoid the import duty.

Shortage of empty containers can be addressed if the govt speeds up the movement of empty containers

The huge shortage of the empty container faced by the Indian exporters in north Indian hinterland can be well addressed if the government speeds up the movement of empty containers from ports to the hinterland for loading export goods and stop empty boxes from being taken out of the country.  This could definitely help improve the availability of containers, if not bring the freight rates down.

Exporters have been looking for support from the government with the ever-increasing freight rates and shortage of containers in the nation, which is constantly increasing their operational costs.

While the government has been looking at ways to help the exporters, a source from the Ministry of Ports, Shipping and Waterways said that there is hardly anything they can do regarding freight rates.

Govt to the view that all empty containers move by rail only

The government is veering around to the view that all empty containers from ports to hinterland locations in the North should move by rail only, which typically takes about three days from the western region. Government had invested a sum of  rs one lakh crores on the JNPT Dadri western dedicated corridor for the swift movement of containers from North Indian hinterland to west coast ports, the only area where the shipping ministry has been giving undivided attention for the past several years

Around 25-35 per cent of the import containers after being cleared of the goods are moved from the northern hinterland. Once they reach the west coast ports, some of the import containers are de-stuffed at warehouses and the empties are handed over to transporters to be hauled to the hinterland for loading export cargo. The shipping lines pay as little as possible to the transporters for the trip.

To recover their cost, the transporters pick local cargo and drop them at various locations en route to the inland container depots (ICD) in the North nominated by the shipping lines for delivering the empty container.

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