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Santanu Sanyal

Kolkata , April 27

THE probable volume of tea shipments through the Amingaon (Guwahati) inland container depot (ICD) in 2005-06 is still not clear but the shipping lines do not rule out a freight hike.

In 2004-05, the average freight between Kolkata/Haldia and Felixstowe (UK) was $1250-1300 per TEU ($2200 per FEU). The corresponding figures this year are likely to jump to $1500-1600 per TEU ($2600-2700 per FEU), if not more, according to local shipping sources.

"It is nearly a month now before the tea shipment season starts but the shipping freight is already showing signs of firming up," observe the sources.

Meanwhile, some foreign shipping lines are believed to have mooted the proposal for a single freight to be quoted jointly by all the lines that will participate in the shipments through the Amingaon ICD.

First, most lines do not make much money by participating in the ICD shipments, so much is the competition. Also, the throughput volume is not very large, around 2,000 TEUs or so, though for five-six months.

Second, despite stiff competition from foreign lines, the public sector Shipping Corporation of India continues to account for over 60 per cent of the ICD shipments.

A near monopoly situation, which many foreign lines feel, must be broken.

There is another point. Several international NVOCCs (non-vessel owning cargo carriers) are understood to have shown interest in shipments through Amingaon ICD and representatives of some were present at the tea meeting organised recently by Container Corporation of India at Shillong. The emergence of NVOCCs, it is feared, will set in motion a freight war - a virtual free for all.

However, many in shipping circles are not convinced of the rationale of quoting a single rate jointly. "Any agreement like this will be observed more in breach," feel shipping sources, pointing out that "there is no way the agreement could be strictly enforced."

If the shippers support SCI, it is because the shipping line, as sources close to the line point out, is dependable. As a national carrier, SCI always accords top priority to national interest, something which is not of great concern to many foreign lines. There have been no rollovers or shutouts of tea containers carried by SCI at the transhipment hub. "We offer competitive rates and personalised services and do not disappear at the time of crisis," the sources observe.

Right now all the major shippers of Assam tea who send their consignments through the Amingaon ICD are in the UK/Continent to seal their deals with overseas buyers.

The indication is that tea prices this year might show a downward trend thanks to good crop in Kenya and the prospect of good production of north Indian tea.

If that happens, will the shipping lines still be able to enforce higher freights than before? Wonder some tea shippers.

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