The Hindu Business Line : Feeder operators plan congestion surcharge at CCTL

SOME of the major container feeder operators operating in and out of Chennai plan to impose congestion surcharge of $50 a TEU (twenty foot equivalent unit) following continued berthing delays for ships at Chennai container terminal. The surcharge is likely to be imposed for all shipment on and after February 25, according to shipping industry sources.

Chennai Container Terminal Ltd (CCTL) appealed to vessel operators to defer the surcharge, and told them that things at the terminal would improve in the next few days.

According to a CCTL official, 1,350 quay crane moves were handled at the terminal on Thursday, which was more than Tuesday's handling. This was done with the help of CCTL employees and workers from Mundhra container terminal (CCTL and Mundhra container terminals are operated by P&O Ports, Australia), who have been brought in as part of a contingency plan to tackle the `go slow' and any strike that CCTL Employees Union plans from February 27, the official said.

Vessel operators justified the surcharge saying it was the only way they could recover the losses following berthing delays for ships. For instance, for the last two weeks container vessels were waiting for 5-6 days outside the port for want of a berth, as compared to a waiting period of less than 2 days when things were normal at the terminal, said an official of a shipping line.

"Ship charter rates have increased tremendously in the last few months, and we cannot afford to keep our ships idle," the official said. In the last two years, charter hire for a 1,400 TEU vessel increased by nearly four times to around $30,000 a day, he said.

According to sources, due to `go slow' by CCTL workers, ship turnaround has increased to 5-6 days as against two days. "This is heavy congestion from liners' point of view," they said.

Sources said there is increased pressure from clients for timely delivery of consignment. However, given the situation at CCTL, shipping lines could not provide fixed day vessel schedule. Also, some of the feeder vessels were missing mother vessels at various transhipment centres, including Colombo, Singapore and Port Klang, the official said. More than 10 feeders operate in and out of Chennai port, he said.

The trade — importers and exporters — is upset with the surcharge, claiming that for no fault of theirs, they have been asked to pay the surcharge. "Due to an internal problem between CCTL management and its workmen, we are suffering. CCTL and workers should pay the surcharge, and not the trade," said an exporter.

According to a trade source, the announcement of surcharge was too short a notice. Further, feeder operators are thinking of their own interest, and are not worried about the interest of the trade.

An official of a shipping line said, "It is not a happy situation to impose a surcharge. However, we are also facing a difficult situation, and do not have an alternative solution to recover the losses."

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