India’s Ministry of Shipping orders ports to waive storage fees

The Indian government’s Ministry of Shipping has addressed an official letter April 21 to all major ports ordering the remission of various charges to port users, including storage charges, lease rentals, penalties and offering additional land for storage at no charge. 

“Due to COVID-19 pandemic and lockdown measures in several countries, the logistic chain has been severely disrupted and associated production and consumption centers have been affected,” the Ministry of Shipping states in the letter it sent April 21. “The logistic chains are going through an unusual and massive shock from the disruptions on supply side as well as demand side. The logistic chain related businesses, including traders, importers, exporters, port operators, shipping lines, transporters are facing huge challenge in maintaining their businesses due to lower trade volume as well as cash flow issues. Therefore, it is required that some relief measures are taken to support and rebuild the logistic chain.”

The letter from India’s Ministry of Shipping states that India’s Ministry of Home Affairs Government had issued Order No. 40-3/2020-DM-I (A) on March 24 and a subsequent order dated April 15 along with its amendments to impose lockdown from March 22 to May 3, 2020, to contain COVID-19 pandemic in the country. The Ministry of Shipping says the lockdown measures and associated disruptions in logistic chains “have impacted Indian ports and port users. There is an impact in the form of drop in imports and exports volumes, delays in evacuation of cargo, cash flow issues resulting in inability of port users, concessionaires and other stakeholders to fulfill their obligations to port authorities and banks/lenders.”

The following are requests from India’s Ministry of Shipping:

• ports shall allow free storage time to all port users for the lockdown period;

• ports shall allow deferment of April, May and June months, annual lease rentals/license fees on pro-rata basis, without any interest, if requested by a lessee or licensee, and this shall be applicable only for the annual lease rentals and license fees to be received by ports for the year of 2020; 

• ports shall ensure that no penal charges, demurrages, detention charges, dwell time charges, anchorage charges, penal berth hire charges or performance-related penalties are levied on any port user for any delay in berthing, loading operations, unloading operations or evacuation and arrival of cargo during the lockdown period and 30-day recovery period; and,

• if requisite additional land is available within port area, the port shall make efforts to provide the additional storage land to port users on a temporary basis without charges, rentals, fees up to June 30, 2020, on an “as is where is” basis.

The full letter can be read here.

According to a news release from the Bureau of International Recycling (BIR), Brussels, some of these instructions do not seem to apply to the Mumbai Port Trust and the Mormugao Port Trust, and it remains to be seen how port authorities will implement these measures.

BIR states that it welcomes the India Ministry of Shipping’s initiative as a positive sign that the recycling industry’s voice is being taken into account.