(Commonwealth)_ Commerce & Industry Minister Piyush Goyal recently convened a meeting with stakeholders from the shipping and cargo sectors, including senior government officials and company representatives, to address critical challenges facing exporters and importers. These challenges include high shipping costs, a shortage of containers, and congestion at ports. The meeting resulted in several key decisions aimed at alleviating these issues and supporting India’s trade infrastructure.
Immediate Steps to Address Shipping Costs and Container Shortage
One of the most significant outcomes of the meeting was the decision by the Container Corporation of India (CONCOR) to allow the storage of empty containers at the Jawaharlal Nehru Port Authority (JNPA) free of charge for 90 days. This is expected to ease the pressure on exporters and importers dealing with container shortages. Additionally, CONCOR has significantly reduced loading and handling charges, a move that will directly benefit businesses that rely on these services for transporting goods. Following the meeting, Railway Board Chairman and CEO Satish Kumar announced a revised set of charges aimed at lowering operational costs for exporters. Charges beyond the 90-day free storage period will be halved, dropping from ₹3,000 to ₹1,500. Furthermore, the cost of storing and handling containers will see a major reduction from ₹9,000 to ₹2,000 for 40-foot containers and from ₹6,000 to ₹1,000 for 20-foot containers. These price cuts are expected to lower overall shipping costs and make Indian exports more competitive in the global market.
Government’s Focus on Multidisciplinary Solutions
Goyal expressed optimism about the outcomes of the meeting, highlighting how various government departments came together to offer innovative solutions to the challenges. He emphasized that the government is taking a multidisciplinary approach to resolving the ongoing shipping issues, stating, “I am confident that it will significantly bring down shipping costs, improve the availability of empty shipping containers, aid the faster evacuation of export consignments, and reduce congestion and time taken at ports.” Several initiatives were discussed during the meeting to support these goals. For instance, a multidisciplinary help desk will be set up to provide direct support to exporters dealing with logistics-related issues. Simultaneous container scanning will be introduced at JNPA, which is expected to reduce clearance times and ensure faster movement of goods through the ports. Traffic delays, which have been a longstanding issue in areas surrounding the port, will also be addressed as part of these efforts.
The government plans to monitor these changes closely, with a review of the situation scheduled for October. The meeting also factored in the emerging global geopolitical landscape, including the Red Sea crisis, conflicts, and their potential impacts on international trade. Goyal highlighted the need for a proactive approach, saying, “With the Red Sea crisis due to Houthi operations, two wars, and its impact on international trade, we thought it would be a good idea to engage with a multidisciplinary team.”
Increasing Container Capacities
Further announcements were made by TK Ramachandran, Secretary of the Ministry of Ports, Shipping and Waterways, who assured that congestion and bottlenecks at JNPA will be eliminated. As part of the government’s strategy to improve export-related processes, Ramachandran outlined plans to minimize traffic delays near the port and enhance container scanning for faster clearances. This is expected to reduce the turnaround time for shipping containers and improve efficiency across the board. In addition, the Shipping Corporation of India (SCI) announced its immediate plans to increase container capacities by chartering ships, enhancing capacity by 9,000 twenty-foot equivalent units (TEUs). Over time, SCI will purchase an additional five container ships to further boost cargo handling capabilities. This initiative is aimed at addressing the current shortage of containers and ensuring smoother operations for exporters.
