Mumbai's JN Port hit with congestion surcharges on inbound boxes

APL, NYK Line, Hyundai Merchant Marine and Wan Hai Lines have levied a US$150 per TEU and $300 per FEU all inbound containers shipped through Jawaharlal Nehru port near Mumbai as a backlog builds in the face of the port's inability to cope with rising volume.

The shipping lines, in notices to the trade, have said they have imposed surcharges to recover the incremental costs incurred as a result of the congestion at the port, reported Livemint the Wall Street Journal.

Figures released by the Indian Ports Association show that volumes at India's largest container port increased 17 per cent year on year in April and May, to reach 751,000 units from 643,000 units, said the report.

"Containerships are now skipping JN port and bringing the cargo back on smaller vessels. In lieu of that, lines are collecting a congestion surcharge," an unnamed industry source told the newspaper, adding that carriers were not issuing delivery orders to importers until the surcharge is paid.

Carriers such as CMA CGM, CSAV, MSC and Zim have announced rate hikes ranging from $250 per TEU to $400 per FEU for India to Europe-Med cargo. MSC said it would raise rates $400 per TEU from August while others are looking to increase rates from mid-July.

Carriers including Hapag-Lloyd, Cosco, UASC and Evergreen will also start collecting a peak season surcharges of $200-350 per TEU and $500-600 per FEU from mid-July, said the report.
(Source:www.schednet.com)