The decision comes amid accelerated efforts to free the giant container ship that got stuck after it ran aground after a sandstorm.
The plan was embodied in a meeting called by the logistics division of the commerce ministry. Includes prioritization of cargo, freight rates, advice to ports and redirection of ships.
A meeting in this regard was chaired by the special secretary (logistics) Pawan Agarwal which was attended by a representative of the ministry of ports, maritime transport and inland waterways, maritime transport of ADG, Association of Container Shipping Lines (CSLA) and Federation of Export Organizations of India.
Several efforts to free the ship in recent days have failed.
Lock Suez Canal Since March 23, 2021, it is seriously affecting world trade, said the Commerce Ministry.
Oil product tanker shipping rates have nearly doubled, while oil prices rose more than 4 percent on concerns about demand from new coronavirus shutdowns in Europe.
This route is used for Indian exports and imports worth $ 200 billion to / from North America, South America and Europe. Includes petroleum products, organic chemicals, iron and steel, automobiles, machinery, textiles and carpets, and handicrafts, including furniture and leather goods.
At the meeting it was noted that more than 200 vessels are waiting on the north and south sides of the Suez Canal, and around 60 vessels are added to the queue daily.
If it takes two more days before efforts result in channel clearing (digging on both sides, adding additional barges at each high tide, tugboats, etc., to straighten the stuck vessel), the total backlog created would be approximately 350 ships. .
“It is estimated that this delay should take about a week to clear up. At the meeting it was decided to closely monitor the situation,” the ministry said.
Under the prioritization of cargo, FIEO, MPEDA and APEDA will jointly identify particularly perishable cargo for priority movement and will work with shipping lines for it.
Additionally, CSLA assured that freight rates will be respected under existing contracts.
“Shipping lines have been asked to maintain stability in freight rates during the period of this crisis. It was noted that the situation is temporary and is unlikely to have a lasting impact,” the Commerce Ministry said.
Once the lockdown ends, a bunching is expected to occur, especially at the ports of JNPT, Mundra and Hazira, he said.
“The ports, navigation and inland waterways ministry made sure to issue a notice to these ports in order to prepare the arrangements and ensure efficient handling during the next busy period,” the statement read.
Additionally, shipping lines through CSLA were advised to explore the option of rerouting ships through the Cape of Good Hope. It was noted that this route change usually takes 15 more days.
(With inputs from agencies)
.
