Yard shutdown threat at Mundra follows ban on using off

Vizhinjam finishes year one on a high and launches $1bn expansion Vizhinjam Port – India’s newest container transhipment hub – ended its first year of operations ... KNIN: APEX PROBED OVER ALLEGED NVIDIA CHIP SMUGGLINGWTC: FOCUS ON SAVINGS ON BEHALF OF CLIENTSWTC: EARNINGS UPDATE VW: CRISIS UPDATEVW: LOOKING AHEADMAERSK: CATCHING UP RXO: SPOT RATES STRENGTHWTC: AHEAD OF EARNINGS CHRW: LACK OF MOMENTUM JBHT: HEALTHY CORRECTION VW: NEW AI PARTNERSHIP KNIN: APEX PROBED OVER ALLEGED NVIDIA CHIP SMUGGLINGWTC: FOCUS ON SAVINGS ON BEHALF OF CLIENTSWTC: EARNINGS UPDATE VW: CRISIS UPDATEVW: LOOKING AHEADMAERSK: CATCHING UP RXO: SPOT RATES STRENGTHWTC: AHEAD OF EARNINGS CHRW: LACK OF MOMENTUM JBHT: HEALTHY CORRECTION VW: NEW AI PARTNERSHIP A controversial move by Adani Ports (APSEZ) to prevent box lines using offsite container yards is threatening to hobble supply chains at Mundra, India’s leading container gateway. In what is being portrayed by industry stakeholders as an “abrupt and arbitrary” move, APSEZ last week issued a trade notice placing an embargo on empty containers going into depots nominated by carriers outside the dock boundary. It said: “All shipping lines, customs house agents, container freight station operators, transporters, and other trade stakeholders are requested to plan the transition of empty container operations to designated depots located within the area of Mundra Port.” The restriction is planned for implementation from 1 September, with APSEZ claiming it would mitigate road congestion and quicken vehicle turnaround times, in addition to meeting safety and security enforcement measures. “Instances of misuse of the empty depot codes have been brought to APSEZ’s notice,” the company also noted. However, industry sources believe the move could have serious repercussions, and have the potential to create an “existential crisis” for inland logistics infrastructure developers that have heavily invested in container yard operations around the port. Voicing deep concerns, container freight station owners have called on APSEZ to reconsider, “in the overall interest of trade”, stating that it’s inconsistent with the government’s broader ease-of-doing business targets. “The proposed restriction is unnecessary and contrary to the established logistics practice of moving shipping line-owned/controlled empty containers to their nominated empty parks/depots,” the Container Freight Stations Association of India said a letter to APSEZ. “Restricting the movement of empty containers to such port-nominated depots would unnecessarily interfere with established logistics arrangements and reduce operational flexibility across the export/import supply chain,” the group added. That approach follows a notice issued by the Mundra Empty Container Yards & Allied Services Provider Association, threatening to suspend operations from tomorrow if the restriction is not lifted. And customs brokers in Mundra have also warned that a shutdown of yard services could result in major hardship for cargo owners should there be no alternative logistics solutions. “Any charges or claims raised on this account by any shipping line against importers/exporters/CHAs will not be honoured or paid by our members, and will be treated as disputed and referred back to the shipping lines for resolution,” the Mundra Customs Brokers’ Association said. The Indian authorities have recently tightened the regulatory screws on inland logistics service providers, following inspections that had discovered alleged lax enforcement of the necessary measures to prevent the movement of misdeclared shipments. The customs department at JNPA recently suspended cargo operations at two major freight stations in the region, pointing out “persistent security deficiencies” by the facilities in handling export cargo, despite multiple warning notices to strengthen safeguards. The crackdowns come as depot storage space across Indian ports, especially at JNPA, remain tight due to the influx of additional transhipment volumes linked to Middle East cargo diversions. Mundra and JNPA together handle the majority of Indian containerised trade, so any sort of disruption there could prove costly for the economy and stakeholders in the supply chain. For uninterrupted access, sign in or sign up to The Daily News, Premium or The Loadstar Enterprise Plan. Comment on this article