The authorities on Friday mentioned a four-point plan has been chalked out to cope with the scenario arising from the blockage of Suez Canal.
The plan was chalked out in a gathering convened by the logistics division, Ministry of Commerce. It consists of prioritisation of cargo, freight charges, advisory to ports and re-routing of ships.
A gathering on this regard was chaired by Special Secretary (Logistics) Pawan Agarwal attended by consultant from the Ministry of Ports, Shipping and Waterways, ADG Shipping, Container Shipping Lines Association (CSLA) and Federation of Indian Export Organisations.
Under prioritisation of cargo, Federation of Indian Export Organizations (FIEO), Marine Products Export Development Authority (MPEDA) and Agricultural and Processed Food Products Export Development Authority (APEDA) will collectively determine cargo notably perishable cargo for precedence motion and work with the transport traces for a similar.
Besides, CSLA assured that the freight charges as per present contracts shall be honoured.
“A request has been made to the shipping lines to maintain stability in freight rates during the period of this crisis. It was noted that the situation is temporary and is unlikely to have a long-lasting impact,” the commerce ministry said.
Once the blockage is over, it’s anticipated that some bunching might happen, particularly on the ports of JNPT, Mundra and Hazira, it mentioned. “Ministry of Ports, Shipping and Waterways assured to issue an advisory to these ports so as to gear up arrangements and ensure efficient handling during the forthcoming busy period,” the assertion mentioned.
Besides, transport traces had been suggested via CSLA to discover the choice of re-routing of ships by way of the Cape of Good Hope. It was pointed that such re-routing often takes 15 extra days’ time.
Blockage of Suez Canal since March 23, 2021, is critically hitting the worldwide commerce, the commerce ministry mentioned.
This route is used for Indian exports and imports price USD 200 billion to/from North America, South America and Europe. It consists of petroleum items, natural chemical substances, iron and metal, car, equipment, textiles and carpets, and handicrafts, together with furnishings and leather-based items.
It was famous within the assembly that over 200 vessels are ready on the North and South sides of the Suez Canal, and about 60 vessels are getting added to the queue every day.
If two extra days are taken earlier than the efforts end in clearance of the canal (digging on either side, additional barges being added on each excessive tide, tugboats, and many others, to straighten the caught vessel), the overall backlog created could be about 350 vessels.
“It is estimated that this backlog should take about a week’s time to clear out. It was decided in the meeting to closely monitor the situation,” the ministry mentioned.
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