Shipment Clearance on Indian Sea Ports – Covid impact and the current status…..
(With inputs from Mr. Rahul Bedi of Barrio Logistics, Vadodara & Mr. Berchman D’Souza of Online Freight Services Mumbai)
The Covid-19 has impacted anything and everything in India and the Indian Sea Ports are no exception. This write up aims at taking a snap shot of what is the current status of Indian Ports and what someone can expect going forward when one resumes the operations, and intends to clear the consignment at the Ports. Here is the run down list of what someone can check and follow :-
1. On the sides it is advisable to prepare the list of consignment detailing the port at which the consignment is received, shipping lines through which it is received, the type of shipment containerized or break bulk, CIF value etc.
2. Check the free period provided by your shipping line to avoid detention. For e.g in case of Maersk, they have provided detention free period from 22nd March to 14th April both days inclusive besides the usual detention free days. Please visit the website of the Shipping lines for detailed calculation for the detention free days.
(https://www.maersk.com/news/articles/2020/03/23/covid-19-updates-india)
3. Delays are expected on account of additional protocols established at the Ports :-
- a. As per the DGS Order No. 04 of 2020 (20 March), the master of the vessel before arrival at its first port of call in India, shall ascertain the health of each person on board and submit the Maritime Declaration of Health to the concerned health authorities of the port and to the port authorities, 72 hours prior to the arrival of the vessel at the port.
- b. Besides the master of the vessel shall also provide the temperature chart and the individual health declaration of the persons on board as per the directives of the local health authorities of the port.
- c. If the master of the vessel ascertains that a person on board the vessel is exhibiting symptoms of Covid-19, the same shall explicitly be mentioned in Maritime declaration of health being forwarded to the health authorities and to the port.
- d. If any of the person on the vessel is tested positive for Covid-19 then it will create further delays in the shipment clearance.
- e. Vessels arriving from ports of infected countries identified for mandatory quarantine and travel ban by MoHFW, Government of India before 14 days of departure from the infected port or having seafarers embarked on the vessel who have been in the infected regions within 14 days of arrival at any Indian port shall need to comply with the additional measures. The updated list of infected countries can be accessed at the website of MoHFW, Government of India.
- f. Vessels arriving from any port in China to have necessary quarantine period of 14 days. (Stoppages of a vessel at any port of infected countries only for bunkering purposes shall not be counted for the calculation of 14 days from port of departure).
Looking at the expected delays as mentioned above it is advisable to commence the process of clearance as early as possible so that the consignment can be cleared at the earliest opportunity.
4. The Gov. of India, Ministry of Home Affairs issued circular dated 23rd March 2020, which directed the closure of all immigration checkpoints including all Airport, Seaport, Land port, Rail port and Riverport Immigration Checkpoints to prevent the spread of the Coronavirus. This however does not apply to Ships carrying cargo for trade or essential goods and supplies are exempted from the aforementioned circular and therefore they will not face an immigration blockade. The crew and the vessels nonetheless would have to undergo the screening process.
5. As per the DGS Order 07 of 2020 an advisory has been issued on the non-charging of container detention charges on import and export shipments. Since 1 April following Indian ports have all declared ‘Force Majeure’ to ensure that unforeseen delays in the delivery of cargoes and other port-related services do not affect their commercial contracts with port users:
All 44 ports under Gujarat Maritime Board, Kakinada Anchorage Port, Kolkata, Haldia, Paradip, Paradip International Cargo Terminal, Kawar Port, Dhamra, Karaikal, Gopalpur, Gangavaram, Krishnapatnam, Kandla, Kandla International Container Terminal , Adani Ports at Mundra, Tuna, Hazira and Dahej, Angre, the JSW and JSWIL ports at Goa, APM terminals at JN port (NhavaSheva).
The consignee’s can take the advantage of the container detention free period under the ‘Force Majeure’ clause.
6. The Directorate General of Shipping has issued DGS Order No. 08 of 2020 – Advisory on non-charging of any demurrage, ground rent beyond the allowed free period or any performance related penalty on non-containerized cargo during the period of effect of Covid-19 pandemic dated 31 March 2020.
The consignee’s can take the advantage of thisaspect and avoid paying of the demurrage and ground rent beyond the allowed free period under the ‘Force Majeure’ clause.
7. All ports/terminals in India, handling liquid bulk cargoes; are working with nominal resources – due to lockdown conditions prevailing in our country.
This aspect can be very helpful to avoid the movement of critical cargo from foreign port and avoid subsequent problems related to liquid bulk storages at the Indian ports.
8. Storage space at all Liquid Terminals/Tankages at most of the Ports are understood to be critical due to slow evacuation.
9. Vessels arriving with chemical cargoes mainly ACETIC ACID and TOLUNE are facing increased delays due to non-availability of space & slow evacuation of previous cargoes already in storage tanks. AMMONIA, HSD and LPG too are understandably facing storage constraints.
(https://www.nepia.com/industry-news/coronavirus-outbreak-impact-on-shipping/)
In a nutshell Shipments can be sent / received however there could be delays in custom clearance and transportation unless it is related to essential commodities. Please ensure to mention clearly 21 days free detention period on the MBL/HBL for imports/exports shipments.
10. As far as ocean import custom clearance is concerned lack of resources continues to delay the ICD’s and CFS’s clearance as customs are operating with skeletal staff and shortage of staff at CFS’s.
11. As far as ocean export custom clearance is concerned work is in Progress with constraints around staff availability for loading & unloading, officers for on wheel clearance at CFS premises.
12. Land transport: Operational capabilities remain unchanged. Trucks are not allowed on the road with exception of essential commodities for which self-declaration letter stating the presence of essential commodity / continuous manufacturing is required.
(https://www.bollore-logistics.com/en/Pages/news/Coronavirus_Impact_Update.aspx)
After speaking to few of the CHA’s and the Freight forwarders, it has emerged, and we can summarize that even though Ports are operating the enabling services are not available which will pose delays and issues such as:-
- 1. Many of the ocean vessels ships are at the outer anchorage due to non-availability of birthing space.
- 2. If the vessels are arriving from China, they are required to go for a necessary quarantine period of 14 days.
- 3. If the vessels are arriving from the list of infected countries then they are required to comply with the additional measures as prescribed by the port authorities.
- 4. CFS, container freight stations which are run by private operators are not working/ working with skeletal staff.
- 5. At many of the ports dock workers are not available, which may lead to delays, however the situation may slightly vary from Port to port.
- 6. Non availability of trucks is also posing a challenge, for the movement of goods from the port.
- 7. The export and import of essential commodities including pharmaceuticals is possible by giving the self-declaration.
- 8. It is expected that the costs in the present circumstances will go up by 25 to 30 % mainly because of lack of loads and the delays expected at each stage of the transaction.