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The Institute of Scrap Recycling Industries (ISRI), Washington, says India’s Ministry of Shipping has ordered the country’s ports to “ensure that no penalties, demurrage, charges, fee [sic], rentals are charged" through April 14. The Ministry's Director General of Shipping also has extended the order to shipping lines not to charge demurrage fees to April 14. However, ISRI adds that it understands that shipping lines have not immediately adhered to the orders.
ISRI also reports that courier services contracted to move original shipping documents to and from India have been suspended, which will cause delays that could lead to additional storage and demurrage fees.
The association says the timing of the orders coincides with India’s three-week national lockdown. The lockdown began March 24, closing factories, markets, shops and places of worship. Additionally, CNN reports, most public transport has been suspended and construction work has stopped in the country.
As of April 1, more than 1,600 cases of COVID-19 have been confirmed in India, a country with a total population of 1.3 billion people, according to the World Health Organization.
The Materials Recycling Association of India (MRAI) is reaching out to the government and shipping lines to consider adding 15 free days to handle the shipping backlogs, ISRI says, adding that MRAI has asked ISRI and the Bureau of International Recycling (BIR) to support in this effort.
ISRI reports that while large blast furnaces are still operating with feedstock they have in storage or that can be cleared through the ports, small smelters and furnaces have been challenged by the sudden labor shortage in the country. “There is a report of a large battery manufacturer declaring force majeure, which is challenging lead scrap recyclers,” the association says.
ISRI’s Adina Renee Adler can be contacted at 202-662-8514 or aadler@isri.org with questions or further information regarding the situation in India.