Tamil Nadu

Feeder operators asked to remove congestion surcharge

CHENNAI: Chennai Port Trust officials on Tuesday wrote to feeder operators in Singapore to remove the ‘congestion’ surcharge immediately, as the situation had returned to normality.

The decision was taken at an emergency meeting they held with officials of DP World, that operates the Chennai Container Terminal, and the representative of traders. If the feeder operators failed to respond to the notice, they would be forced to give priority to those vessels that did not levy surcharge.

Talking to The Hindu, Port Trust chairman K. Suresh said: “We have requested the five feeder operators to remove the surcharge immediately as there is a marked improvement in the situation. We are also setting up an effective mechanism to find out whether or not the surcharge is warranted. Forced measures such as labour strike and high ranging will be given weightage. The traders will know the circumstances that lead to levy and withdrawal of surcharge, if any. We are also striving to improve the overall performance.”

The feeder operators did not reply to the notice. However, in an unofficial communication, they said the surcharge on export containers would be removed on January 11, and on import containers on January 20.

The traders, hit hard by the congestion surcharge, rejected the proposal and demanded that it be withdrawn immediately. They said that there was no congestion at the container terminal. Moreover, they said, the feeder operator had recovered the loss in the first week itself.

A surcharge of $100 per twenty-foot equivalent units (TEUs) per day was being levied since December 2007, as there was considerable delay in clearing the containers.

DP World attributed the delay to heavy ranging in the ocean owing to cyclone, collapse of a manhole near the main gate of the port and ships arriving out of windows. Frustrated by the long wait to get in and out of the port gate, trailer drivers resorted to a flash strike. This led to piling up of containers. The feeder operator levied the surcharge, increased it to $175 and then brought it down to $100.

A senior official of Shipping Line said the company would not levy the surcharge if they were able to turn around vessels within 48 hours of berthing. “There is no windows concept. Specify the time and we will adhere to it or else we will refund the surcharge.”

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