Govt urges traders to seek more grace time from shipping lines
KATHMANDU:
The government has urged traders to negotiate for more grace period with the shipping lines while importing goods from third countries via Kolkata port to reduce the detention charges levied by the shipping lines.
Shipping lines normally extend 14-day turnaround period to Nepali importers to return shipping line containers after the containers are dispatched to Nepal from the Kolkata port. The turnaround period is the travel duration of containers from Kolkata port to the Inland Container Depot (ICD) in Birgunj or inside the country and back to Kolkata port.
As per the Ministry of Commerce and Supplies, some shipping lines have been extending 21-day turnaround period and detention charges vary. During talks with the Consulate General of Nepal in Kolkata, the India-based bureau of shipping lines suggested for better negotiations with shipping lines while importing goods from a third country. Mainly five shipping lines, namely APL, Maersk, OOCL, Pacific International Lines (PIL) and MSC have been ferrying Nepal-bound cargo containers. APL has been extending 21-day turnaround period, as per Rajan Sharma, president of Nepal Freight Forwarders’ Association. Likewise, the detention charges and the grace period also vary with each shipping line. “Maersk charges $100 per day while PIL charges $11 to $14 per day after the grace period exceeds but PIL gives a grace period of only seven days,” said Sharma.
“The Consulate General of Nepal in Kolkata has also urged traders to ensure that the shipping lines mention the grace period in the master bill of lading instead of house bill of lading.”
A study conducted by the government has shown that Nepali importers are
paying demurrage charge of $68.8 million per year at the Kolkata port as the shipping lines start charging for demurrage if the containers are not returned to Kolkata port within the grace period extended by the shipping lines. The government had earlier also requested shipping
lines to dispatch containers from ICD Birgunj instead of Kolkata port but it did not materialise.
Besides, the Nepal Intermodal Transport Development Board has requested the Container Corporation of India (CONCOR) — subsidiary of Indian Railways that ferries Nepal-bound cargoes — to reduce turnaround travel duration. Nepali traders are having to pay extra since long due to lengthy travel duration of the railway and the containers that are unloaded inside the country take more time to return to Kolkata port and are being charged more.
“A 14-day turnaround period is insufficient even for containers that are unloaded at the Inland Container Depot in Birgunj,” said Sharma. If traders negotiate for more grace time while importing goods and CONCOR shortens the travel duration, detention charges would
reduce, he added.
Source:THT
