Government Takes Bold Steps to Solve Shipping Sector Woes

The government announced measures to reduce port charges and buy five additional container vessels to alleviate shipping sector issues affecting exporters and importers. Key decisions include reducing storage costs, expediting custom clearances, and enhancing port capacities to address container shortages and high shipping costs.

On Thursday, the government revealed a series of initiatives designed to tackle the shipping sector challenges faced by exporters and importers. Key measures include reducing specific port charges and acquiring five additional second-hand container vessels by the Shipping Corporation of India (SCI).

In a meeting that involved senior officials from multiple ministries and industry bodies, stakeholders discussed issues such as container shortages, escalating ocean freight rates, and prolonged turnaround times at ports. The Commerce and Industry Minister, Piyush Goyal, expressed optimism that these decisions would lower shipping costs and improve the availability of empty containers.

Immediate steps include increasing container capacities by 9,000 TEUs, reducing storage charges, and expediting custom clearances. The port capacities have also been enhanced by 2.3 million TEUs, and the Jawaharlal Nehru Port Trust assured the elimination of congestion at Nhava Sheva port. Private container yards will now have to register with GST authorities to prevent illegal profiteering.