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