Port Wings Maritime Exim Weekly Newspaper 6 May 2020 Issue

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May 6th - 12th Issue

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Published from Chennai and Circulated among the trade across the country RNI TNENG/2014/59741

Wednesday, May 6, 2020

8 Pages

JNPT Maintains 80% of Import Activity During April 2020

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Wing 6 Feather 38

Authorized Economic Operator

Mob : 9884085285

Ease of Doing Business: APSEZ Mundra, MSC India, ODeX India launch integrated platform

Mumbai

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Port Wings News Network vercoming the impact of COVID-19 outbreak and lockdown challenges, Jawaharlal Nehru Port Trust (JNPT), India’s premier container port registered a throughput of 283,802 TEUs in container handling. The import container volume of April 2020 is 80% of the imports handled in April 2019 and overall throughput is 63% of the cargo handled during Apr 2019. With factories in the hinterland opening up due to the revised lockdown norms issued by the Government of India, exports are also picking up.

JN Port handled total of 167 vessels in April 2020 and the overall turnaround time on Port a/c improved to 33 hrs from 39 hrs Last Year.

This has been the result of the support of all the terminals, Shipping Lines, Container Fright Stations

Mundra

(CFSs), Custom House Agents (CHAs), Transporters, CONCOR, Private Container Train Operators, Truck Transporters, BPCL Liquid Cargo Jetty & associated Tank Farms, Empty Yard Operators, Partner Government Agencies like FSSAI, Plant Quarantine linked to Port Operations who remain operational and continue to operate as per schedule to help the port perform its duties during these difficult times.

JNPT has taken various measures to limit the impact of the outbreak while also protecting the trade channel from any disruption. The port announced an extension of waiver/remission/relaxations at all the Container Terminals at JN Port from April 15 to May 3. Some of the proactive measures taken by JNPT include extended relief to the trade in order to support Port users and end users like - No dwell time charges will be levied for all import/ export containers moved by road and rail (CFS/DPD/Empty/ICD), No Contd. on page -2

SABARI LOGISTICS SOLUTIONS SABARI WAREHOUSING PRIVATE LIMITED SABARI & PRAVEEN STEVEDORES SLS TRANSPORT & Co (CUSTOMS BONDED WAREHOUSE GENERAL WAREHOUSE | TRANSPORTATION) Registered and Head Office: 4/203, Ambattur – Redhills Road, Surapet, Chennai – 600 066.

SWPL: No.5 Ariyalur Village, Madhavaram Taluk, Chennai – 600 060.

Phone: +91 7299011029 Email: service@sabarilogistics.com www.sabarigroups.org

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Port Wings News Network n light of the global Corona virus pandemic, Adani Ports & Special Economic Zone - Mundra, in collaboration with MSC – Mediterranean Shipping Company, India, and ODeX India Solutions, recently has taken an initiative to launch an integrated platform, to help Shippers, CHAs, Transporters or any other representatives on behalf of end customers, update the Export Cargo Information/ Pre-Shipment Information of the containers movements to Adani Container Terminals, Mundra.

According to a APSEZ release, the initiative will reduce the manual processes of Container Gate-in

by Road, and consequently, the integration will help stakeholders to coordinate seamlessly and remotely in the digital platform.

This will be an one-stop solution which will result in reduced physical human interactions. In the near future this integration will be extended to all shipping lines across all Adani Terminals, added the release.

Inside New Fruit Shipping Route Links... Pg-2 ASSOCHAM Lends Support to... Pg-3 Rs 50 Lakh Compensation to Port... Pg-4 Global Port Authorities Vow to... Pg-5 Vessel Position at Terminals and Ports... Pg-6 Latest Customs Exchange Rates... Pg-7

Thank You Torchbearers of Economy Logistics is the lifeline of the country and many at times your service to our nation gets unnoticed. Our State Government in accordance with Government of India enforced the lockdown due to the COVID-19 Pandemic on 24 March 2020.

While most of us followed our government directive to stay at home and rightly so, some essential services like logistics industry comprising of CFS, CFS’s admin staff, container crane operator, yard in charge, system management staff, security personal, gate in charges, top management of CFS, doctors, fumigation agents, staff, facilitators, Customs officers, and most importantly drivers of container-laden vehicles, have put their life at risk and selflessly worked towards movement of import and export containers.

We at Bonded and General Warehouse Services salute you all from the bottom of our heart for the incomparable, unparalleled service even during this pandemic situation and for being the backbone of our economy.

THANK YOU

WASH YOUR HANDS

USE SOAP

AVOID CROWDS

STAY Home Stay Safe

2M

WEAR MASK

AVOID HANDSHAKE

2M

2M

PHYSICAL DISTANCING

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2018-2020 Posted at Pathrika Channel, Egmore, RMS, Chennai-8. Date of Publication - Wednesday, Posted on Tuesday / Wednesday

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May 6th - 12th Issue

JNPT Maintains 80% of Import...

Wednesday, May 6, 2020

Wing 6 Feather 38

Work From Home Alone

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hat can be a blessing can also become a curse in the form of cabin fever. Some freelancers and others who work from home lamented that the place they work during the day is the exact same place they'll be sitting later that evening and that getting involved in their work often translates to spending a huge portion of the day indoors. Many stressed the importance of scheduling lunches and other meetings to keep them in the mix and avoid the rut of never leaving the house.

Remote work has clear benefits, but no situation is perfect.

Understanding the reasons to work from home – as well as the reasons not to – can go a long way in learning how to work from home successfully. Many who work from home lamented that they often find themselves working around the clock, since their labor has no definite start or end times. As a result, they sometimes feel like they are literally always at work, making it difficult to shift to the post-work relaxation mode that many office workers take for granted.

The absence of an obvious division between the personal and professional realms means some remote workers get distracted by housework. Although you will have calls and online meetings with your clients or team members every now and then, you will be home alone most of the time.

No quick coffee breaks, no lunch together, no exchanging weekend plans with your colleagues. The lack of social interactions can be really hard for some people. With people told to work from home and stay away from others, the pandemic has deepened reliance on services from the technology industry’s biggest companies while accelerating trends that were already benefiting them.

Amazon has muscled in on brick-and-mortar retailers for years, but shoppers now reluctant to go to the store are turning to the e-commerce giant for a wider variety of goods, like groceries and over-the-counter drugs.

Streaming services like Netflix have dampened box office sales for movies in recent years. Now, as movie theaters close under government orders, Netflix and YouTube are gaining a new audience.

Beyond lost creativity and companionship, the gravest threat to many companies from remote work is that it breaks the social bonds that are necessary to productive teamwork. Several years ago, Google conducted a research project on its most productive groups. The company found that the most important quality was “psychological safety”—a confidence that team members wouldn’t embarrass or punish individuals for speaking up.

But first, companies will have to learn that remote work is different work. Managers will have to get better at judging productivity by setting and monitoring specific goals rather than using the proxy of office attendance. Workers will have to adopt extraordinary conscientiousness when it comes to dividing their day into deep work, office communications, personal time, and civic or family life.

Employees will have to develop new habits, such as keeping copious documentation of every meaningful work interaction, so that teams across space and time are always up to speed on what’s happening “down the hall.” And bosses will have to normalize more video conferencing and corporate retreats, because their employees will continue to crave face-to-face interaction.

Sample TEXT A pandemic is not an appropriate time to determine what kind of labor arrangement is optimally productive on a per-worker basis. It is rather a moment for companies to build out the kind of technology and culture that, when the economy is back to full force, could make remote work easier for those who want to take advantage of it in a future where white-collar work might involve a little less commuting and a little more home.

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SUBSCRIPTION

Continued from page -1 shifting charges will be levied for change of mode (i.e. truck to rail or rail to truck) and No shifting charges will be levied for DPD containers moved by rail after 48 hours to ICD Mulund or ICD Tarapur from April 13 as they have been declared as ‘extended port gates’ of JN Port.

In the wake of this crisis Port has also prepared an action plan for avoiding congestion and created sufficient storage capacities inside and outside the Port. Extended Port gate facility has been made available for DPD containers at Mulund and Boisar. Additional storage capacity has also been created at CWC, Dronagiri node where cargo is being moved through En-block movement.

Shri Sanjay Sethi, IAS, Chairman, JNPT said, “In the month of April JNPT handled 499 container trains, making it the highest number of container trains handled in a particular month. This also resulted in increasing the rail coefficient during the month to

22.39 % against the previous FY monthly average of 16.04%. This is a result of the perseverance of our workforce and in time diligent effort and support of all the stakeholder of JN Port. Our commitment towards ensuring that trade doesn’t come to a standstill even during the lockdown and has resulted in JNPT achieving these numbers.

The entire family of JNPT will put in efforts to constantly evolve our operational efficiency and the port’s performance by maintaining all the safety protocols.”

The port has undertaken several preventive measures to equip and protect its workforce against respiratory viruses and other potential diseases. Port is also carrying out extensive community disinfectant spraying and sanitation drive in all its nearby villages too to help put a strong fight against COVID 19. JNPT has been diligently deploying all the sanitary guidelines issued for the safety of its workforce with regular fogging and

spraying of all buses. Also the port has provided Personal Protective Equipment (PPE) to the pilots and has been carrying out regular fogging and disinfecting of all JNPT terminals. The port authority has provided accommodation for the staff of terminals, drivers etc. in the Port township, started free Bus shuttle services for the staff of essential services stakeholders for movement in the port area and CFSs, Empty Yards. JN Port is also distributing specially made meals to the truck drivers who have been working tirelessly to keep the operations going at the Centralized Parking Plaza, GTI Holding Yard, NSICT Holding Yard & Parking No.1.

With the support of all the stakeholders and local authorities JNPT is constantly working towards facilitating ease in doing business for the Trade and has firmly anchored itself as the major catalyst for trade in the country even during these extremely challenging times.

New Fruit Shipping Route Links ASEAN and South China Port Chennai

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Port Wings News Network ship loaded with fruit from ASEAN countries arrived at Fangchenggang Port recently, marking a new shipping route for transporting fruit, local authorities said on 29 April, reports Xinhua.

The shipping route from Vietnam's

Ho Chi Minh to the port city of Fangchenggang in South China's Guangxi Zhuang autonomous region is operated by four ships from China COSCO Shipping Corporation.

Each ship can carry 1,100 standard containers with a load of 1,800 tonnes. Currently the service runs once a week, but it is expected to run

two to three times a week by the end of 2017, according to sources with the Beibu Gulf port administration.

Fangchenggang Port is a fruit import port in southern China.

The new route will help boost fruit imports from ASEAN countries, while marketing Chinese farm produce and fruit to the ASEAN.

Despite Coronavirus Trade Disruptions, Latin America Drug Lords Flood Europe with Cocaine Chennai

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Port Wings News Network atin American drug lords have sent bumper shipments of cocaine to Europe in recent weeks, including one in a cargo of squid, even though the coronavirus epidemic has stifled legitimate transatlantic trade, senior antinarcotics officials say, according to a media report citing Reuters.

The illegal drugs industry has been disrupted by the virus, with international supply chains busted and millions of customers on lockdown.

But drug kingpins have risen to the challenge, packing huge loads of cocaine into the fewer container ships and commercial airplanes in circulation in a sign they were ready to take higher risks to deliver their wares.

“Based on seizures of biggerthan-usual shipments of cocaine, it would be fair to say that Europe was flooded with cocaine ahead of lockdowns,” Bob Van Den Berghe, senior law enforcement officer at the United Nations Office on Drugs and Crime (UNODC), told Reuters.

This trend has continued despite many European countries – including major user markets such as Britain and Spain – severely restricting their populations’ movements.

“The global pandemic, at this moment in time, has not had an effect on maritime drug trafficking.

It’s business as usual,” said Michael O’Sullivan, head of the EU-funded Maritime Analysis and

Operations Centre which coordinates interdictions at sea.

In the first three months of this year, UNODC confiscated 17.5 tonnes of cocaine bound for Europe in South American ports, mostly Brazilian. That represented a nearly 20% rise compared to the same period in 2019, Van Den Berghe said.

The larger catch was the result of fewer seizures of heavier loads.

Nearly seven tonnes directed to the Dutch port of Rotterdam, the largest in Europe, were apprehended in four operations so far this year, according to U.N. data. In the same period last year just over four tonnes were intercepted in eight separate seizures.

This month, Belgian authorities seized nearly five tonnes of cocaine in a container from Latin America in the port of Antwerp, which last year was Europe’s main entry point for cocaine with more than 60 tonnes intercepted there.

That followed several seizures there of more than one tonne in March, said Kristian Vanderwaeren, head of customs for Belgium, which went into lockdown on March 17.

“We were used to consider a one-tonne seizure as an important operation,” he told Reuters, declining to give further details.

Amounts seized are usually only a fraction of total shipments and offer a proxy estimate of illegal trade.

Europol estimates the European market is worth at least nine billion euros ($9.8 billion) a year. France, Germany, Italy, the Netherlands,

Spain and Britain account for just over 87% of its estimated four million cocaine users.

HIDDEN IN SQUID ?

The traffickers are as ingenious as ever, taking advantage of the fact that Europe’s import of fruit, vegetables and other foodstuffs from South America is among the few sectors that have only been marginally affected by the epidemic.

The five-tonne cocaine cargo seized in Antwerp was concealed in a refrigerator container carrying squid from Latin America, Van Den Berghe said.

At the port, the squid load was separated from the cocaine and transferred into an identical container before undergoing checks. But authorities foiled the criminal plan.

The rise in big cocaine loads in shipping containers followed a similar trend with airplanes, Vanderwaeren said.

In mid-March, just before Belgium began its lockdown and most commercial flights were suspended, customs officials at the main airport of Zaventem seized 350 kg of cocaine hidden in suitcases in a plane from the Dominican Republic in the Caribbean – an amount 200 times bigger than usually detected in air shipments of narcotics.

“That is because the number of planes flying from South America to Europe was reduced substantially and each plane was a good opportunity to transport cocaine,” Vanderwaeren said, adding that this was not an isolated case.

May 6th - 12th Issue

Allow Greater Industrial Activities in Major Economic Districts: CII New Delhi Port Wings News Network he Confederation of Indian Industry (CII) called for economic contribution of districts to be taken into consideration while classifying Lockdown Zones. Districts with high economic activity should resume all industrial and business operations, including in Containment Zones with highest safety protocols, said CII in its report ‘A Strategy Note on Resumption of Economic Activities in Industrial Areas’ submitted to the Government.

The submission follows the notification issued on 1 May by the Government on graded exit from the Covid-19 related lockdown.

“The third phase of lockdown necessitates a focused strategy to minimize economic contraction due to Covid-19, without compromising on efforts to control the contagion. Prioritizing districts with heavy presence of economic and industrial activities with continued operations accompanied by strictest precautions can help enterprises to remain financially sustainable while averting job losses,” stated Mr Chandrajit Banerjee, Director General, CII. While the protracted lockdown in the country, necessitated by the rapid spread of COVID-19, has helped in controlling the spread of epidemic and given us time to augment medical capacity, it has also caused enormous stress to the financial sustainability of many businesses, said CII in a press statement.

In its strategy note, CII requested that the top districts should be identified based on variables like their contribution to country’s GDP, or presence of industrial estates & clusters or registration of enterprises in a district.

Instead of the current practice of classifying the entire district as a Red zone, CII has suggested the need for classifying zones as Containment, Orange and Green within an industrial district.

Economic activities, in varying degrees of relaxation, should be permitted in all areas of this district but health and safety protocols would differ from zone to zone.

The Containment Zone may be a street, mohalla or factory building where positive cases have been detected, said CII. CII has suggested that close surrounding areas can be classified as Orange Zones where industrial activity can be continued with strict precautionary measures and monitoring. The distinction of essential and non-essential items should be removed and all factories should be

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permitted to restart, according to CII. In containment zones, industrial units where no positive cases exist, can be allowed to operate if workers can be restricted to the premises or within walkable distance, as per the CII note. Raw materials and finished goods should be disinfected and kept separately for 72 hours before use as permissible by health authorities.

Maximum precautions and safety measures in the form of masks, repeated sanitation, restricted movement of people and vehicles and group testing, among others, can be carried out regularly in such Containment Zones, noted CII. “Aggressive measures are required to ensure that an industrial district moves from Red to Orange and Green within 21 days. The cost of undertaking precautionary measures by way of repeated sanitation, wearing of PPE, Masks, monitoring, group testing etc. will be much less than the economic loss if businesses in such high performing districts have to remain shut for longer duration,” stated Mr Banerjee.

The Government notification of 1 May has permitted industrial estates, SEZ and industrial townships with restricted entry within urban areas of Red Zones to commence operations.

CII submitted that all industrial units, including in non-notified industrial areas and standalone units, be allowed to function in urban areas.

These should include non-essential goods and services as well.

CII also called for limited public transport to function to enable workers and selfemployed people to reach the industrial areas.

Green zones within an industrial district, on other hand, should be allowed to work with relaxed restrictions but following strictly the health & safety protocols prescribed by the health authorities.

There should be a real time availability of data on all types of zones within the industrial districts. The authorities may also provide updated information on Aarogya Setu app, other apps, local newspapers, radio, TV and online channels, stated CII. The CII strategy note prescribes standard operating procedures for offices, workplaces, factories and establishments prior to resuming operations, after resuming operations, and guidelines for social distancing and visitor management.

ASSOCHAM Lends Support to Govt on Graded Opening of Economy; Seeks Urgent Stimulus New Delhi Port Wings News Network tanding behind the government to extend the lockdown for two more weeks with graded relaxations to deal with the Covid-19 crisis, the ASSOCHAM has impressed upon the government to immediately announce an aggressive fiscal stimulus to mitigate the economic pains from the pandemic. "'The government's strategy to build on the gains in the form of containment of Coronavirus is understandable and must be supported, but the 40-day lockdown has resulted into a massive economic disruption.

The disruption has started causing livelihood concerns for millions of workforce- both in the formal and informal sectors. Businesses across different sectors, be in hospitality, construction, logistics, manufacturing and trade find themselves locked up in grave financial woes. The fixed costs, such as

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wages, electricity, rentals, communication are hard to meet even as the operational losses are inevitable. Such a dire state of affairs demands a large sized fiscal stimulus even if it requires monetisation of fiscal deficit by direct lending

by RBI to the government," said ASSOCHAM Secretary General Mr Deepak Sood.

He said the ASSOCHAM has been suggesting a graded opening up of the economy.

However, the issue of migrant labour needs to be cautioned with utmost care, because once the workers are migrated to their native places, it would be difficult to recall them. Already, the required manpower is difficult to find for running the supply chain of essential goods, mainly for the transport sector and mandis.

Mr Sood expressed hope that the fiscal stimulus would be all-encompassing to include reduction in GST, government guarantee to banks for lending to weaker businesses, release of all government dues and restructuring of the loans.

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FICCI Welcomes Prime Minister's Push Towards Coal, Mining Reforms New Delhi Port Wings News Network ICCI has welcomed the proposed reforms in coal and mining sector and these measures will give a push towards government's efforts for improving efficiencies in coal sector for augmenting domestic coal production and reducing the cost of power for the consumers. These measures will also help the government pursue its objective of attaining sustainable development growth plans.

Prime Minister Narendra Modi, through detailed meetings held with senior government officials deliberated on the potential economic reforms in mines and coal sectors to give a boost to the economy in the backdrop of COVID-19 pandemic.

Auctioning of additional blocks, reduction in cost of mining and transportation, increasing ease of doing business, participation of private sector in exploration and mining and use of searoutes for domestic supplies will be some of the next wave of reforms being planned by the Government for bringing in more investments, increasing employment opportunities and towards substituting imported coal with inventory of domestic coal with an objective

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of securing the country's energy needs.

Mr Vipul Tuli, FICCI Power Committee Chairman and MD, Sembcorp Energy said that all of industry would welcome renewed efforts to tap India's vast coal and mineral resources.

"Modern, efficient, sustainable mining with cost effective evacuation will help create employment, attract investment, and enable downstream power and other core industries to become more cost effective in serving India's needs," he added.

These measures will also help ensure more participation from the private players in the upcoming auctions of coal blocks for commercial sale and also help towards realizing the Government's target to completely stop coal imports by power plants by 2024.

The policy change earlier last year allowing 100 per cent foreign direct investment (FDI) in coal mining is expected to provide a big thrust to foreign mining companies to enter India, bringing in their superior mining technology and increasing competition in the domestic market. Government is also looking for reform measures towards reducing delays in obtaining clearances and partnering with states to facilitate increase in private investment to boost the economy.

Lockdown Knocked Wind out From India’s Major Industries New Delhi Port Wings News Network even out of eight core sectors activities shrank in the month of March, when the country announced a nationwide lockdown, according to a report in Financial Express.

The core industries output contracted by 6.5 per cent in March, which was a free fall from 7.1 per cent in the month of February, according to the Ministry of Commerce & Industry. The highest contraction was observed in the cement industry that contracted by 24.7 per cent in the month. Other industries to show contraction of more than 10 per cent were natural gas (15.2 per cent), steel (13 per cent), and fertilisers (11.9 per cent). The only industry to expand during the period was coal, showing a growth rate of 4 per cent.

The adverse effect of coronavirus showed up at a time when the country’s core industries just came out of a prolonged phase of a

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slowdown. The output of core industries contracted for four straight months between August and October 2019. In fact, the core industries’ output shrank by 5.5 per cent in October 2019. Altogether, the growth of the core sector in the full fiscal stood at 0.6 per cent, which is at least a 7-year low. In the previous three fiscal years, the core sector grew at more than 4 per cent.

Meanwhile, from the last week of March, the industries succumbed to the nationwide lockdown that completely banned the movement of people and non-essential goods.

However, this restriction was slightly lifted from April 20 and the permission was given to the industries to start operations, abiding by the guidelines issued by the Ministry of Home affairs. While the industry bodies are appealing to the government to further relax the conditions for their operations, eyes are glued to the government’s forthcoming guidelines for the post-May 3 period.

Indian Air Force Helicopter Showers Petals Over Hospitals

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May 6th - 12th Issue

Commerce Minister Holds Discussion With Export Promotion Councils on Global Supply-chain Challenges New Delhi Port Wings News Network inister of Commerce and Industry & Railways Shri Piyush Goyal on 29 April held discussions with the Export Promotion Councils (EPCs) of the country through Video Conferencing.

He called upon the exporters to identify their strengths, potentials and competitive advantages in specific sectors, and focus on harnessing them in the world markets. Shri Goyal said that in the post-Covid era, there is going to be perceptible change in the global supply-chains, and Indian industrialists and exporters should be looking to capture significant share in the world trade. He assured them that the Government

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will be a pro-active supporter and facilitator in their efforts, and the Indian Missions abroad can play an important role in that. The Minister said that Incentives can be given, but they have to be justified, reasonable, and WTO-compliant.

Shri Goyal said that the Ministry is working on identifying the specific sectors which can be taken forward in the immediate future for the Exports purpose. He said that India is going to have a bumper Rabi harvest this season, and our storage facilities are overflowing.

At the same time, there are news stories that there is shortage of food items in several countries.

Many places are not having food of appropriate quality, taste and quantity, due to disruptions in the supply chains because of Covid-19

crisis. He said that this seems to be a good opportunity for export of agricultural and processed food items. The Minister exhorted the Export promotion councils to undertake brainstorming sessions with its members, and come up with similar actionable, big-ticket ideas.

The EPC Office bearers expressed their gratitude to the Minister, for providing support and coming out with time-bound solutions, during the Covid pandemic and lockdown. They made several suggestions, which may further facilitate their functioning.

The meeting was attended, among others, by FIEO, AEPC, SRTEPC, CLE, SEPC, Chemexcil, GJEPC, CEPC, Shefexil, CEPCI, PEPCI, Pharmexcil, ECSEPC, EEPC, TEPC, Capexil, Chemexcil.

DPIIT Sets Up Control Room for Monitoring Issues of Industry and Trade During Lockdown Period New Delhi Port Wings News Network epartment for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, had setup a Control Room on 26 March to monitor the issues of Industry and Trade and take up such matters with the concerned State Government, District and Police Authorities and other concerned agencies. The Control Room monitors the issues of internal trade, manufacturing, delivery & logistics of essential commodities and difficulties faced by various stakeholders during the lockdown period to resolve any supply chain issues.

Out of the total number of 1962 queries registered till 28 April 2020, 1739 have been resolved/settled.

223 are currently under resolution.

Out of 1962 queries registered, more than 1000 queries were received from five States/UTs viz., Delhi, Maharashtra, Uttar Pradesh, Haryana and Gujarat.

A dedicated team has been put in place to monitor and tracking the disposal of queries and to generate daily MIS reports for information of senior officers in the Department.

The team also closely tracks the important queries by calling up the affected people and obtains their inputs while taking up the matter with the concerned agency. This also helps in making an assessment about the efficacy of various

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agencies involved in resolution of issues. This team of professionals helps senior officers to know the impact of their interventions and thus keeps everyone apprised of the status of resolution of grievances.

The queries are being received in the control room through telephone calls as well as email.

Any manufacturing, transporter, distributor, wholesaler or e-commerce companies facing ground level difficulties in transportation and distribution of goods or mobilization of resources can inform to the Department at the following telephone number (+ 9111 23062487) and email (controlroomdpiit@gov.in) The telephone number is functional from 8 AM to 6 PM. The control room has been receiving queries regarding ground level difficulties as well as the procedural and policy issues being faced by the manufacturers, transporters, distributors, wholesalers and e-commerce companies. After registering the queries, the DPIIT control room staff forwards the same to the State level control rooms and the Chief Secretary of the State with the request to initiate necessary action and ensure that the required relief is provided to the querists at the earliest.

The queries received in the control room are forwarded to the senior officers of DPIIT who constantly monitor the issues and

in case of an issue requiring urgent intervention, the same are also taken up with other officers of the State Government including the concerned District Magistrate or Police functionaries. All the senior officers of the DPIIT have been assigned specific States with which they continuously interact and urge upon the State functionaries to initiate action on pending issues.

The State Government Departments such as Industry, Transport, Consumer Affairs and Food and public Distribution are also monitoring the resolution of such queries separately.

Minister of Railways, Commerce and Industry Shri Piyush Goyal quite frequently takes stock of the nature of issues raised through the control room and has been urging all concerned to initiate action necessary to ensure supplies of essential goods to the common man in every part of the country. Dr. Guruprasad Mohapatra, Secretary DPIIT along with his senior colleagues also regularly reviews the status of pending issues in the States during his meetings held through video conferences.

On 24 March 2020, the Central Government had announced a nationwide lockdown, with a view to prevent the spread of the Covid-19 virus, while putting in place arrangements for ensuring that supplies of essential goods and services remain available to all citizens.

Metal Scrap Importers Risk Losing Rs 80,000 Cr to Shipping Lines Chennai

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Port Wings News Network mporters of metal scrap and paper recycling industries run the risk of losing more than Rs 80,000 crore by way of demurrage or detention charges as shipping lines and container freight stations (CFS) are acting in blithe disregard of guidelines issued by the Ministry of Shipping, according to a Business Standard report.

Industry sources said that over 250,000 containers are stranded at Indian ports on account of the complete lockdown enforced to check the spread of virulent Covid-19 pandemic. As the pandemic induced lockdown has reduced the availability of manpower and crippled essential services, obtaining clearances is consuming more time than what was customary.

In view of this extraordinary situation, the Ministry of Shipping has issued comprehensive directions to major ports for remitting penal charges, demurrages, detention charges, dwell time charges, anchorage charges, penal berth hire charges and performance related penalties levied on port users, including the shipping lines.

“It is now decided that for the second lockdown period, the shipping companies or carriers shall not charge, levy or recover any penal charges, demurrage, ground rent storage charges in the port, detention charges, dwell time charges, additional anchorage charges, penal berth hire charges, vessel demurrage or any performance related penalties on cargo owners or consignees of noncontainerised cargo for the period from April 15 to May 3 due to delay in berthing, loading/unloading operations or evacuation/arrival of cargo”, read an order from the Directorate General of Shipping, Mumbai.

However, Container Freight Stations Association of India (CFSAI) has issued a letter,

denying giving any waiver on demurrage charges, citing that they are governed under Handling of Cargo in Custom Area Regulation (HCCAR) 2009, whereas none of the ministerial and departmental orders have mentioned the HCCAR Rules. Similarly, foreign shipping companies have refused to adhere to guideline orders.

“Such is the indifference and unsympathetic attitude of the shipping lines and CFSs across India. They are not ready to heed to or implement the guidelines issued by the Ministry of Shipping, Government of India for waiving off the unjustified levies that they charge on import cargo”, said an aggrieved importer.

The situation has led to a stacking of hundreds of thousands of imported scrap containers at ports, jeopardizing the livelihoods of 300,000 people who depend on the recycling sector for their livelihood.

Women make up 30 per cent of this workforce, engaged in segregation of scraps before melting.

“The 6000-odd MSME (micro, small & medium enterprises) units in the Recycling segment from metal and paper are adhering to the government order and giving salaries to their employees who are mainly from the weaker sections of the society. But, the foreign shipping lines and their associates who do not even listen to the Ministry of Shipping guidelines” said Sanjay Mehta, President, Material Recycling Association of India (MRAI).

With survival of the 6000-odd MSME units in metal recycling at stake, MRAI has urged the Government of India to flag the issue of waiver of demurrage charges with the shipping lines and CFS, declare recycling activities as ‘essential services’, make available additional working capital over the stipulated limits and waive off interest on late payment of custom duties.

Rs 50 Lakh Compensation to Port Employees in Case of Death due to COVID-19 New Delhi Port Wings News Network he government on 28 April announced a compensation of Rs 50 lakh for dependent members of port employees in case of loss of life due to COVID-19 while discharging duties, according to a shipping ministry statement.

The compensation has been announced for any death due to COVID-19 till 30 September 2020 and the situation will be reviewed after that.

Declaring the compensation for the port employees/workers in case

T

of loss of life due to COVID, the Ministry of Shipping in a statement said: "All port employees including contractual labourers employed directly by the port and other contractual employees are covered" under it.

The statement said the ministry has decided that all the major ports may grant compensation / ex-gratia in the event of loss of life due to COVID-19 to the dependent members/legal heirs of the port employees.

"Port Chairman is the competent authority for the settling claims/

disbursement of the compensation/ ex-gratia and verifying authority for the cause of death from COVID-19," the statement said.

This compensation is applicable only for the pandemic and will be in force up to 30 September 2020, subject to review thereafter.

India has 12 major ports -Deendayal (erstwhile Kandla), Mumbai, JNPT, Mormugao, New Mangalore, Cochin, Chennai, Kamarajar (earlier Ennore), V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia).

As part of their Corporate Social Responsibility activities during Coronavirus pandemic, SABARI group, one of the leading logistics companies in Tamil Nadu, loosen its purse strings to help all of their staff.

Mr. V.S. Padmakumar, Chairman and founder of Sabari Group of Companies, handed over bagful of general provisions to their staff and workers with monthly salary.

May 6th - 12th Issue

Coronavirus Takes a Toll on Shipbuilding Industry

T

Chennai

Port Wings News Network he economic fallout from coronavirus restrictions helped cut investment in shipbuilding to its lowest level in 11 years in the first quarter, with work at Asian shipyards nearly halted and owners holding back on orders as global demand for goods nosedived, reports The Wall Street Journal.

“Contracting activity was extremely limited in the first quarter of 2020, with the economic impact of the Covid-19 outbreak negatively

affecting investor sentiment,” shipbroker Clarkson PLC said on Monday in its monthly World Shipyard Monitor report.

Clarkson said 100 vessels of all types were ordered in the first three months of 2020 at $5.5 billion, a 71% decline from last year’s first quarter and the lowest total since the second quarter of 2009. Chinese yards got 55 orders in the quarter and South Korean yards got 13 orders, representing falls of 50% and 81%, respectively.

The firm expects orders to keep sliding as a global downturn in trade deepens, and that the number of overall orders will decline by 26% this year. “The continued escalation of the coronavirus outbreak is likely to have a severe impact on newbuild order potential in 2020,” Clarkson said.

Clarkson said seaborne trade, which stands at around 12 billion metric tons, will contract by 600 million metric tons this year, the biggest fall in more than 35 years. The firm forecasts that overall trade of goods moved on ships will shrink 5.1% in 2020 from last year, compared with a 4.1% annual decline during the 2008-09 financial crisis.

The falling orders affect every type of ship, from container vessels that move the world’s manufactured goods to high-margin naturalgas carriers where South Korean and Chinese yards had pinned their hopes for growth this year.

Orders for dry-bulk carriers and tankers also are drying up even though China is resuming commodity imports and energy traders are booking tankers to store oil on the

back of the crude-price collapse.

The trade lapse will directly hit the Korean and Chinese yards that control around half of the global shipbuilding capacity, according to marine data provider VesselsValue.

South Korea’s Hyundai Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co. are merging, and so are China Shipbuilding Industry Corp. and China State Shipbuilding Corp., combinations undertaken to help rationalize operations and cut costs amid declining orders over the past three years.

The yards were making more space to build liquefied natural gas carriers, which cost around $180 million apiece, about three times more than other types of ships, and generate profit margins that are at least twice as high as other ships.

“Then the virus hit and the bottom fell off,” said a senior executive at the China Association of the National Shipbuilding Industry, China’s state-run yard trade body. “It’s bad times, so we have to lure in orders. Depending on the customer and the type of ships, Chinese yards will be offering up to a 20% discount on new orders.”

The LNG market was surging before the coronavirus outbreak, mainly on demand from China and India, which are turning to gas rather than coal for power generation and heating.

Clarkson said the global order book for LNG carriers in the first quarter stood at 2,915 vessels, the lowest tally since 2004, when the natural-gas market was a fraction of what it is now.

The broker said travel restrictions also are delaying orders, as carrier executives are unable to meet with shipyard engineers and planners for the detailed work that goes into planning vessel specifications.

“We got a bulker and a small boxship on order which are already a month late and we can’t send our people to China to check on the progress of work,” said an Indonesian owner, who requested anonymity. “How can you buy a ship when you can’t be at the yard to make sure it’s being put together properly?”

Clarkson said Chinese yards that had suspended work in February under Beijing’s coronavirus restrictions had mostly resumed production by mid-March. But deliveries may be held up because critical parts like navigation systems provided by European suppliers have been delayed, and some shipowners are seeking to push back payments.

5

Global Port Authorities Vow to Keep Trade Going Amid Corona Pandemic

A

Chennai

Port Wings News Network t least 20 members of the Port Authorities Roundtable (PAR) from Asia, Europe, Middle East and North America came together recently to declare their commitment to ensuring their ports remain open amid the current pandemic, according to the PAR report.

Ports across the globe have been declared essential services and have been working around the clock to maintain trade of goods, especially of food and medicines, uninterrupted.

However, there have been numerous challenges in ensuring the safety of port workers and seafarers while continuing to keep the operations going.

The declaration initiated by Singapore was signed by members of the Port Authorities Roundtable (PAR) including Abu Dhabi Ports, Antwerp, Hamburg and Rotterdam ports, Port Klang, Busan, Shanghai, Yokohama as well as Seattle, Long Beach and Los Angeles Ports.

It was the first virtual declaration for PAR members.

The ports also agreed to adopt best practices according to national circumstances, including precautionary measures for the shipping community, advisories and assistance for shore personnel and ship crew, and safe handling of cargoes during this period.

“As the world battles with the COVID-19 pandemic, it has never been more critical to keep our ports open and goods moving.

Shipping is chartering into many unknowns and new challenges. Port authorities have to take enhanced precautions for their ports and on ships, as well as manage the stress faced by our seafarers and maritime personnel. We have come together to make a declaration of our commitment, exchange experiences and share best practices,” Quah Ley Hoon, Chief Executive at the Maritime and Port Authority of Singapore (MPA), said.

Through this joint declaration, the signatories are committed to working together and ensure that: 1. Merchant ships can continue to berth at port terminals to carry out cargo operations and keep the global supply chain going; 2. Best practices are adopted, according to national circumstances, including precautionary measures for the shipping community, advisories and assistance for shore personnel and ship crew, and safe handling of cargoes during this period; and 3. Port authorities continue to share experiences in combating COVID-19 while safeguarding unimpeded maritime trade.

PAR has shared the declaration with the International Maritime Organization and the International Association of Ports and Harbours to rally other port authorities to join this declaration.

Blank Sailings and Impact on Port of Rotterdam

A

Chennai

Port Wings News Network third wave of blank sailings has been announced by shipping company alliances 2M, OCEAN Alliance and THE Alliance. The capacity reduction, especially on the Far East-Europe trade, varies between 20% and 37%, depending on the alliance, according to Port of Rotterdam sources.

In addition, lockdowns also have an impact on deepsea trades to and from South Africa and India/Pakistan. A list of the current blank sailings is available at: www.oceaninsights.com The impact of the blank sailings and lockdowns is visible in the Port of Rotterdam with a delay of approximately three weeks.

Consequently, the impact of the announced measures in April is limited. For the time being, based on the current list of blank sailings, a decline in deep-sea volume in Rotterdam is expected to be 25% compared to May and June 2019. The decline after this period depends on the course of the corona crisis.

For import containers with storage periods that are extended due to shop and factory

closures, space is being sourced at terminals and depots in both Rotterdam and the hinterland.

Shortsea Many shortsea shipping companies showed a slight decrease in volumes in recent weeks.

Many shops are closed, but orders that have already been placed are still shipped and

transported to warehouses. However, these orders are slowly drying up. It is therefore expected that there will be a large decrease in volume in the short term.

The handling of ships from shortsea shipping companies is still functioning normally in Rotterdam. The fleet of shortsea shipping companies is often largely made up of charter vessels. This enables shipping companies to be flexible with return delivery, should the need arise.

150,000 Seafarers in Need of Immediate Crew Change: ICS

A

Chennai

Port Wings News Network latest data jointly compiled by the International Chamber of Shipping (ICS) and the International Maritime Employers' Council (IMEC) reveals that some 150,000 seafarers will be in need of crew change by May 15.When ICS first highlighted the problem with national governments and the G20 the number was 100,000, and now the number has gone up 50%.

The staggering figure is being revealed on the back of the International Labour Day on May 1 which had been marked with ships sounding their horns across the globe in

support of seafarers.

Seafarers are facing an unprecedented crisis as a result of the COVID-19 pandemic.

Namely, due to the lockdown measures and restrictions on travel seafarers have been unable to conduct crew changes and some of them are stuck onboard ships for much longer than originally planned.

Delivery of supplies and in some instances even payment of wages has been delayed or challenged posing considerable risk to seafarers’ well being and mental health.

Industry bodies have been calling on governments to find a solution and declare seafarers essential workers in order to

facilitate their transfer from ships to ports and fly them back home.

Specifically, concerns have been raised that extended time at sea onboard ships and the inability to repatriate might even compromise the safety of the supply chain and operation of ships amid heightened pressure on crews who have been essential in delivering goods in this time of crisis.

However, despite calls to designate ports for crew changes and different solutions from unions, a comprehensive solution is yet to be found. The ICS believes the inaction from governments is exacerbating the problem.

“Globally there are 1.2 million seafarers onboard 65,000 ships at sea. For the past two months crew change has all but completely stopped. This means that crew have not been able to disembark or embark ships at port and terms have had to be extended, but this is not sustainable. International Workers’ Day is the ideal moment to recognise their contribution to fighting the coronavirus pandemic. We thank you,” Guy Platten, Secretary General ICS, said.

“The new data indicates that 150,000 seafarers are in need of immediate crew change, with the potential for this number to increase significantly until travel restrictions are eased.”

6

Vessel Position at Terminals - (06.05.2020 To13.05.2020)

May 6th - 12th Issue

7

CITPL - Chennai

CCTL - Chennai ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

6-5

7-5

SIF

SPIRIT OF MUMBAI

19

MSC1

Colombo

05/-5

06/-5

CI3

WAN HAI 515

E063

WAN

Port Kelang (North port), Singapore, Shangha,

10-5

11-5

COST

TCI VIJAY

TCI1

Port klang

08/05

09/05

FME

SUEZ CANAL

20003E

TST

Port Klang, Singapore, Manila, Pusan, Shanghai, Hong Kong

14/05

15/-5

FME

ZANTE

078E

RCF

Port Klang, Singapore, Manila, Pusan, Shanghai, Hong Kong

DAKSHINBHARATH GATEWAY TERMINAL / Tuticorin ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

07/05

08/05

TUX

MV.OEL SHRAVAN

20030

TW

COLOMBO, TUTICORIN, COLOMBO

06/05

06/05

CI II

MV.WAN HAI 508

172E

OMEGA SHIPPING

TUTICORIN, PENANG, PORT KELANG, HONG HONG, QINGDAO, SHANGHAI, NINGBO, SHEKOU

06/05

07/05

FAR SHIPPING

MV.VLADIVOSTOK

124S

CTS

COLOMBO, TUTICORIN, COLOMBO

08/05

08/05

COLOMBO FEEDER

MV.MAERSK AVON

2075

BTL

08/05

09/05

BOX

MV.XPRESS BRAHMAPUTRA

131T

10/05

FAR SHIPPING

MV.VLADIVOSTOK

125S

09/05

COLOMBO, TUTICORIN

6-5

7-5

VCH-1

Kapitan Maslov

855

MSC & NVOs

Ennore, Krishnapatnam, Visakhapatnam, Tanjung Pelepas, Xingang, Qingdao

BTL

COLOMBO, TUTICORIN, KANDLA

8-5

9-5

VCH-2

FSL Singapore

003

Colombo

9-5

10-5

COASTAL

SSL Sabaramalai

60

Colombo

CTS

COLOMBO, TUTICORIN, COLOMBO

7-5

8-5

ECX

SSL Kutch

187

Haldia, Paradip

09/05

10/05

EAST COAST

SSL KOCHI

82

Haldia

07/05

08/05

EXX

X-Press Hoogly

20010

Kolkata Kakinada, Haldia, Paradip

9-5

10-5

MAERSK SHUTTLE

Mexico

2014

Maersk & Safmarine,XCL

Colombo, Salalah

12/05

13/05

CCG

Varada

0023

MSC, SCI, HMM,

Cochin , Nhava Sheva, Mundra, Jebel Ali, Bandar Abbas, Dammam

07.05

08/05

PIX2

SCI Chennai

471

5-5

6-5

BULK

IDM DOODLE

1

PSA

06/05

7-5

C13

WANHAI 515

063W

WAN

Calling Ports

Tuticorin, cochin, Pipava, Kandla, Jebel ali

08/05

9-5

PIX2

SSL DELHI

042W

SHR

Tuticorin,cochin,Pipava, Kandla,Jebel ali

8-5

9-5

ACS

HYUNDAI PREMIUM

066W

HMM

Krishnapatnam, West Port Klang , Singapore, Cailan, Busan, Ulsan, Shanghai, Ningbo, Yantian

10-5

11-5

TCX

XIN PU DONG

239

CCD

Chennai WestPort Klang, North Port Klang, Singapore, Laem Chabang

APM Terminal - Mumbai MINA

10-5

11-5

10-5

Agent/Line

Calling Ports

BERLIN EXPRESS

HLI

Pipavav, Port Klang, Singapore, Shangai, Ningbo, Xiamen

TIP

MOL GENEROSITY

ONE

Jebel Ali, Mundra, Hazira, Nhava Sheva

11-5

CIX3

APL COLUMBUS

APL

Jebel Ali, Mundra, Hazira, Nhava Sheva

11-5

12-5

CIX

WAN HAI 509

WHI

PUS, NGB, SHK, KAN, SHA, DCB, SIN, PKG, KHI, MUN

12-5

13/05

CWI

TESSA

ESA

Pipavav, Hazira, JNPT, Jebel Ali, Salalah, Port Said, Mersin, Ambarli Port, Izmlt Korfezi, Novorosslysk

NSICT - Mumbai ETA

ETD

Service

Vessel Name

7-5

8-5

INDUS

8-5

9-5

9-5 12-5

Voy

Calling Ports

Hyundai, RCL

Agent/Line

9-5

Agent/Line

66

Voy

8-6

Voy

Hyundai Premium

Vessel Name

Voy

Vessel Name

ACS

Service

Vessel Name

Service

10-5

ETD

Service

ETD

9-5

ETA

ETD

ETA

Krishnapatnam, West Port Klang , Singapore, Cailan, Busan, Ulsan, Shanghai, Ningbo, Yantian

Kattupalli

ETA

NCT, Krishnapatnam

Agent/Line

Calling Ports

MSC HEIDI

MSC

Mundra, Nhava Sheva, Valencia, New York, Norfolk, Charleston, Savannah, Freeport

MIDAS

NORO

CCA

Nhava Sheva, Mundra, Port Qasim, Singapore

10-5

BMM

HAZEL

PRD

13/05

MESAWA

MAERSK TEMA

MSK

Mundra, Nhava Sheva, Valencia, New York, Norfolk, Charleston, Savannah, Freeport

Bharat Mumbai Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

06/05

07/05

CIX

HYUNDAI LONG BEACH

L0091

HMM

PUS, NGB, SHK, KAN, SHA, DCB, SIN, PKG, KHI, MUN

07/05

-8/05

ADHOC2

CMA CGM URGUAY

L0126

CMA

MUN, CMB, NGB, SHA

-8/-5

09/05

EPIC2

PARIS EXPRESS

L0119

HLI

TNG, JED, MUN, LEH, LGP, HAM, ANR, RTM

12/05

13/05

CIX

HYUNDAI COLOMBO

L0124

HMM

PUS, NGB, SHK, KAN, SHA, DCB, SIN, PKG, KHI, MUN

13/05

14/05

SWAX

BERMUDA

L0117

HLI

DAR, JEC, JEA, MUN, MBA

As the data is received by us, sometimes even at the eleventh hour by telephonic messages from the concerned Steamer Agents, there is every likelihood of last minute changes in the data published for which and also for the printing errors occuring the Management of Port Wings is not responsible or liable.

Tuticorin, cochin, Pipava, Kandla, Jebel ali

Kakinada Container Terminal ETA

ETD

Service

Vessel Name

Voy

Agent/Line

Calling Ports

08/-5

09/05

KAK>CMB

FSL SINGAPORE

003S

FAR SHIPPING

Halida, Colombo

COVID-19 Cannot be Used to Lower Wages and Standards for Ferry Workers, Warns ITF

A

Mumbai

Port Wings News Network t a time when seafarers are keeping the world moving, COVID-19 cannot be used as an excuse to lower the wage and working conditions of seafarers, International Transport Workers’ Federation said in its release.

Seafarers are vital employees because they keep the global supply chains moving.

Seafarers, including those on ferries, transport around 90 percent of the world’s goods, including necessary medical supplies, equipment, products and passengers.

During this pandemic, seafarers continue to work to ensure vital goods and passengers are transported, selflessly and in spite of the risks of contracting Covid-19. Despite the vital role that seafarers play, some companies are seeking to use the pandemic to undermine national standards in the industry, including replacing existing crews with seafarers on international terms and conditions that are substantially lower than national conditions.

The pandemic cannot be used as an excuse for shipowners, managers or crewing agencies to dismiss their obligation to protect local jobs, local conditions or health, safety and economic standards in an industry for any work – especially for key workers including seafarers. Regardless of the nationality of a seafarer, they deserve the national terms and conditions applicable in national trade.

In the United Kingdom, multiple companies, including Condor Ferries, Stena Line and P&O

Ferries, have laid off seafarers, and forced seafarers to choose between taking unpaid leave or being furloughed. This is putting a serious economic strain on the seafarers and their livelihoods. Further, companies are using the pandemic to undermine long existing collective bargaining agreements – this is totally unacceptable.

In Canada, BC Ferries cast aside their collective agreement to unjustly lay-off workers, operating their routes with less crew. BC Ferries later partly reversed this decision after pressure from the union representing the seafarers, but the company continues to disregard the collective agreement.

“National Governments must play a necessary role in ensuring market downturns due to Covid-19 do not turn into unfair redundancies for seafarers or undercut current wages. Now more than ever, critical trade routes that deliver essential supplies should be crewed with national seafarers. To use this pandemic as an opportunity to further erode conditions on ferry routes is opportunism at its worst,” said James Given, president of Seafarers International Union of Canada and chair of the ITF Cabotage Taskforce.

Companies who receive government funds have an obligation to ensure jobs for national seafarers since those funds are taxpayers’ money. Further, national governments must place conditions on employers who receive public funds that they must protect the wages of furloughed seafarers, including the preservation of existing and pre-existing terms and conditions of employment.

May 6th - 12th Issue

Need to Mitigate the Impact of COVID-19, vis-à-vis Restart Economy Mumbai

T

Port Wings News Network he COVID-19 crisis has put us in a situation that nobody had ever anticipated, Mr. Vijay Kalantri, President, All India Association of Industries, had said.

Mr. Vijay Kalantri stated: "With a large number of economies witnessing a lockdown, trade and commercial activities across several sectors are undergoing a slowdown.

Manufacturing and export activities are severely hit due to lack of adequate staff and delays in logistics and transport activities, whereas importers are unable to clear their cargo due to operational issues at ports."

MSMES THREATENED WITH SURVIVAL ISSUES "While most entrepreneurs are strategizing their course of action post the lockdown period, several MSMEs may be threatened with survival issues, especially since they have to meet their fixed expenses such as salaries, rent, electricity charges, municipal taxes, PF etc. despite loss of income during the lockdown. Business units, across sectors, are urging banks and other financial institutions to transmit the monetary policy easing measures announced by RBI. However, many of these institutions are being risk averse as they anticipate that stressed assets can lead to defaults, and thereby turn into NPAs," added Mr. Vijay Kalantri.

"The crisis is an economic shock, not witnessed in many years.

Global supply chains are disrupted and consumption of durables is postponed. The recovery may add a silver lining to developing countries like India, as the dominance of major economies like China in international trade may take a hit.

Still, the mitigation of the adverse impact of the crisis will require concerted efforts by the government, industry and trade bodies, in general.

Several businesses are seeking to invoke the ‘Force Majeure’ clause in order to mitigate losses arising out of non-fulfillment of their contractual obligations. A force majeure clause is a contractual provision that protects a party from liability for its failure to perform a contractual obligation owing to force majeure events such as natural disasters, war or war-like situations, labour unrest or strikes, epidemics, pandemics, etc. which are beyond the control

of the performing party," Mr. Vijay Kalantri further added.

THE FORCE MAJEURE CLAUSE The Ministry of Finance had in February 2020 declared COVID-19 a force majeure event in India.

Industry players ranging from shipping ports and L N G importers to real e s t a t e enterprises and new a n d renewable Mr. Vijay Kalantri, e n e r g y President, AIAI

manufacturers are, therefore, endeavoring to take shelter in the provisions of the force majeure clause.

The shipping ministry has allowed ports to use COVID-19 to declare force majeure clause. Many private ports have invoked the clause as the lockdown will prevent them from dispatching the cargo and fulfilling related arrangements in time. A few gas importers have issued force majeure notices to their suppliers seeking delayed delivery of cargoes.

CUSTOMS CLEARANCE DOCUMENTATION PROCESS Further Mr. Kalantri said, in order to simplify documentation for exports and imports through digitization, Department of Revenue, CBIC has undertaken several initiatives like Single Window Interface For Trade (SWIFT) and adoption of digital signature. A large number of documents that trade, transport and regulatory agencies are required to submit/receive in the process of live customs clearances are now being processed online.

Although the customs clearance documentation process is online, many Indian exporters are unable to export their shipments in time since the announcement of the lockdown subsequent to the COVID-19 crisis.

Additionally, transport operators are facing a shortage of truck drivers as despite of the government’s clarification that transportation of all goods, without distinction of

essential and non-essential will be allowed, transport operations have been impacted. In the absence of livelihood opportunities, many drivers have fled to their hometowns.

EFFECTIVE LOGISTICS NETWORK BY LEVERAGING TECHNOLOGY & PROCESSES While the restoration of supply chains may come about soon, exporters are also facing the problem of obtaining quality and pre-shipment inspection certificates, certificate of origin (CoO) etc.

The government has requested the customs authorities and other competent authorities in the trade partners with whom India has a trade agreement to allow the eligible imports under preferences on a retrospective basis subject to the subsequent production of the CoOs by the Indian exporters.

The Directorate General of Foreign Trade (DGFT) also operates a common digital platform as a single point access for CoOs for all FTAs/PTAs for all agencies and all products. It is designed to facilitate exports through a secure, electronic, paperless CoO issuance process wherein designated CoO issuing agencies are required to work through the portal.

It is remarkable that the government is building a wellintegrated, seamless, efficient, reliable and cost-effective logistics network by leveraging best-inclass technology and processes.

However, many Indian exporters are naive about the digital mode of customs clearance procedures and are largely dependent on the expertise of Custom House Agents in transporting their cargo.

If India wants to become the export-hub of the world in future, it becomes imperative that Indian exporters become cognizant about the steps taken by the government towards enabling ease of trading and improving their business competitiveness. Still, the government should educate exporters about its initiatives by creating district-level awareness programmes and ensure that these become fully operational as soon as possible, while also encouraging products such as export factoring and export credit insurance that can help exporters manoeuvre these difficult times.

"We hope our suggestions will be taken into consideration," concluded Mr. Kalantri.

Madras Chamber of Commerce and Industry Welcomes Tamil Nadu Government's Move on Relaxation Chennai

R

Port Wings News Network eacting to the Tamil Nadu State government’s decision to lift certain restrictions, except in containment zones, Ramkumar Ramamoorthy, President, Madras

Chamber of Commerce and Industry (MCCI), said, “Keeping the engines of the economy running is important to balance both lives and livelihood. The past several weeks have been a very difficult period for the industry as much as it has been for citizens from all walks of life. The Madras Chamber is glad that the Tamil Nadu Government has taken a cautious-yetpragmatic approach to relaxing the guidelines for most categories: from neighbourhood shops to SMEs to large scale industries, while ring-fencing

NEWS - BITS ECSA Board welcomes the positive discussions in the Transport Ministers' meeting

At their meeting, ECSA's Board of Directors voiced its support for the positive outcomes for the European shipping industry at the informal teleconference of the Transport Ministers that took place on 29 April 2020, ECSA said in its release.

The Ministers very much echoed the industry's perspective that a common European approach is urgently needed to manage the impact of the current crisis on European shipping. The ECSA Board appreciates the special emphasis the ministers put on the organisation of crew changes and their safe work conditions, where a number of Member States highlighted the urgent need for a coordinated solution to the issue. Following the Guidelines published by the European Commission on 8 April, ECSA is working through its membership to swiftly identify and report the bottlenecks on the ground.

The industry also welcomes the point raised by several ministers that under these unusual circumstances, companies should be given the flexibility to issue vouchers instead of cash reimbursements, as published in the Executive Summary of the meeting. Additionally, the ECSA Board extends its gratitude to Transport Commissioner Valean for stepping up to help alleviate some of the burdens currently faced by the industry.

Austal Australia awarded A$324 million contract to build six cape class patrol boats Austal Australia has been awarded a A$324 million contract to design and construct six evolved Cape-class Patrol Boats (CCPBs) for the Royal Australian Navy, the company said in its release.

It is the largest contract for an Australian vessel construction program ever awarded to Austal in the Company’s 30 year history.

The six new vessels, to be constructed at Austal’s Henderson shipyard in Western Australia, will add to the Royal Australian Navy’s (RAN) existing fleet of two CCPB’s delivered in 2017 and further extends Austal’s Cape-class Patrol Boat program to a total of 18 vessels. This includes eight patrol boats operated by the Australian Border Force and two currently under construction for the Trinidad and Tobago Coast Guard. Austal Chief Executive Officer David Singleton said the new contract both reaffirmed the Capeclass as Australia’s pre-eminent patrol boat platform and represented a clear commitment by the Australian Government to strengthen Australia’s sovereign shipbuilding industry during a challenging global environment, brought on by the Coronavirus pandemic.

The proposal to replace the existing fleet of 13 Armidale-class patrol boats (designed and manufactured by Austal) with new, evolved Capes was first proposed

by Robert Jackson, Head of Business Development – Sustainment at Austal.

China Merchant Heavy Industry orders MAN engines for new generation of offshore installation vessel China Merchant Heavy Industry (CMHI) has ordered 6 × MAN 12V32/44CR main engines in connection with the building of a new 5,000-tonne floating installation crane vessel - already christened 'Les Alizés' - for Jan De Nul Group, an international maritime construction expert, MAN said in its release.

Delivering a cumulative output of 43,200 kW, the common-rail engines will each feature an enhanced, MAN-supplied SCR (Selective Catalytic Reduction) system for IMO Tier III-compliance, and will also meet the even-stricter Euro Stage V-compliant NOx-emission limit.

The enhanced NOx-reduction rate is essential for the newbuilding to fulfill the exacting ULEV (Ultra Low Emission vessel) standard for better air quality, characterised by very low NOx and particle emissions. Les Alizés will be built at CMHI's shipyard in Jiangsu province, eastern China, and is scheduled for delivery in 2022. Jan De Nul Group is a world leader in dredging and offshore technology and operates a modern and versatile fleet of dredging and offshore-installation vessels that currently features over 90 MAN engines.

MAN Energy Solutions states that several of the 32/44CR's unique features were important in it being chosen for the project. Accordingly, the engines will be delivered with the company's innovative ECOMAP feature. The CRsystem's flexibility permits the engine to be programmed to run along different fuel-consumption-versus-power characteristics, with each having its efficiency optimum at a different load point. Another key 32/44CR characteristic is that high engine-output is available even at high ambient temperatures, as well as at the high exhaust-gas back-pressures resulting from the extensive exhaust-gas treatment equipment, which is mandatory for the ULEv notation.

CUSTOMS EXCHANGE RATES Notification No.39/2020 (N.T.) ALL RATES PER UNIT

FOREIGN CURRENCY

containment zones."

Ramkumar Ramamoorthy stated: "These relaxations will enable industries to slow-crank operations with limited person-power, and in a calibrated fashion, ready themselves for broad-based operations in the weeks and months ahead. It is important that industries behave responsibly and strictly follow the newly-defined standard operating processes as they shoulder an equal if not bigger responsibility to make the lockdown exit seamless, sustainable and scalable."

7

Australian Dollar Bahraini Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwaiti Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc Turkish Lira UAE Dirham US Dollar Japanese Yen (100) Korean Won (100)

with effect from 17th April 2020

RATE (INR) Import Export 49.30 206.20 55.30 11.00 11.40 85.00 10.10 254.65 46.95 7.40 97.40 21.75 21.10 54.60 4.25 7.75 80.85 11.45 21.60 77.65 72.40 6.45

47.10 200.90 53.45 10.70 11.00 81.95 9.75 238.80 44.75 7.15 94.05 20.45 19.80 52.80 3.95 7.50 77.80 10.75 20.25 75.95 69.80 6.05

We are not responsible for any mistake. ALL RATES ARE PROVISIONAL. The rates in these column are only meant for guidance.

RNI No. TNENG/2014/59741 Postal Registration No. TN/CNIGPO/067/2018-2020 Posted at Pathrika Channel, Egmore, RMS, Chennai-8.

Date of Publication - Wednesday, Posted on Tuesday / Wednesday

8

Three Out of Five Converted VLOCs s Are No Longer Operating, BIMCO Analysis Shows

Chennai

S

Port Wings News Network ince June 2017, 43% of the VLOC fleet have been sent to the scrapyards, while 18% of the fleet is idled or damaged, a market analysis by Baltic and International Maritime Council (BIMCO) has revealed.

"The tragic Stellar Daisy accident brought the safety aspect of VLOCs into question. Now, three years on, three out of five VLOCs are no longer in operation as their longterm charters have now expired.

Going forward, the obsolete VLOCs will be phased out of the market and replaced with technologically superior and more reliable ships," said BIMCO’s Chief Shipping Analyst, Peter Sand.

The VLOCs were converted from single-hull Very Large Crude Carriers (VLCC) towards the end of 2000 as an innovative result of the dry bulk super cycle and the IMO regulation which mandated that all single hull tankers should be phased out by 2010. With cheap and obsolete tanker tonnage in the market, investors eyed an opportunity to convert the ships into VLOCs and deploy them on longterm contracts of affreightment, often with a duration of 10 years.

THE ECONOMIC RATIONALE OF KEEPING THE OLD VLOC TONNAGE AFLOAT In June 2017, BIMCO analyzed the VLOC fleet which at the time consisted of 51 ships with an average age of 23.8 years, not far

from the average demolition age of 24.2 years. Back then, we argued that the ships on long-term contracts still made solid economic sense, given a second-hand price equal to the scrap value and stable earnings.

Arguably, the maintenance and repair costs are significantly higher than y o u n g e r tonnage, but the statement from 2017 still holds true, granted the condition that the ships have employment under long-term contract. Once the VLOCs no longer have to fulfil obligations under long-term contracts, the economic incentive to keep the ships afloat evaporates.

At face value, during their time as ore carriers, these ships have provided a solid return on investment, even when accounting for higher maintenance cost.

Although the conversion from tanker to dry bulker came at an estimated price of USD 12-15m, plus the cost of the actual ship, the freight revenue from the long-term contracts for carrying ore from Brazil to China have exceeded the cost by a fair margin.

Since the last analysis, the fleet has undergone a massive trimming with 28 ships remaining in the fleet, eight of which are lying idle in Labuan, a dedicated lay-up site.

Since June 2017, 22 ships have been

scrapped while one is damaged and not in service. Therefore, it seems likely that converted VLOCs will soon be a memory of the past.

CONVERTED VLOCS ARE PHASED OUT AS SUBSTITUTES ARE BROUGHT IN The investment strategy of converting cheap tanker tonnage to dry bulk carriers seems unlikely to be replicated any time soon. With economic growth and prosperity comes opportunities. The VLOCs were acquired and contracted for conversion during the dry bulk bull run in 20072008, but many of the conversions were only complete after the financial crisis put an end to the bull market.

The ships entered a market, which never recovered to previous highs, but nonetheless remained a profitable one in the initial years.

In 2009 and 2010, the Baltic dry index (BDI) averaged 2,616 and 2,758 index points respectively, well below the 6,390 index points seen in 2008, but a substantial margin above the averages from 2011-2019, which never exceeded 1,600 index points.

Perhaps even the contrary holds true. From June 2017 to April 2020, the Capesize (+100k DWT) fleet grew by 29.6m DWT (9.2%). From 2017 to 2019, seaborne trade of iron ore declined by 17m tonnes (-1.2%) "A shortage of tonnage will not arise because the converted VLOCs are now phased out. New and even larger ships have already been delivered to the dry bulk market, more than covering the transportation needs," concluded Sand.

May 6th - 12th Issue

Acting as a Principal or an Agent – the Difference is Important, Says ITIC Chennai

I

Port Wings News Network TIC - International Transport Intermediaries Club – recently settled a case where a shipmanager was caught up in a dispute between a supplier of grabs and an insolvent owner.

The shipmanager was supervising the build of two new ships in a Chinese yard and had arranged the purchase of two grabs, assuming they were acting as an agent on behalf of the owner. However, the owner became insolvent before either of the ships were delivered and the supplier of the grabs held the shipmanager responsible for payment claiming they had ordered the grabs directly and in their own name. The claim was for the cost of the grabs, US$710,000, plus interest.

The shipmanager’s lawyers believed that their position as agent of the owner had been made sufficiently clear prior to purchase and that the circumstances and context of the purchase was such that confusion over the shipmanager’s role should not have arisen. On this basis, it was decided to defend the claim.

Meanwhile, the yard itself also became insolvent. As a result, neither the supplier nor the shipmanager were able to recover the grabs.

The matter was eventually heard by a court who found in favour of the supplier. The court believed that the shipmanager could not

demonstrate that the order for the grabs had been made in the name of, or on behalf, of the owner. The judgement was for US$900,000.

This was appealed and eventually the supplier settled at US$420,000.

ITIC covered this cost as well as legal fees of US$70,000.

ITIC is particularly keen for intermediaries to understand when they are acting as an agent or a principal in situations such as this.

Not knowing the difference can lead to expensive claims.

International Transport Intermediaries Club (ITIC) is the world’s leading provider of professional indemnity insurance to transport professionals across the globe.

As a mutual insurer, it has over 90 years’ experience providing cover to companies in the marine, naval architecture, aviation, rail, offshore and hydrographic industries.

With 2,900 members in over 110 countries and with a worldwide network of correspondents, ITIC is the acknowledged leader in its field.

ITIC’s insurance has been developed primarily to cover claims of negligence – errors or omissions.

Cover can also extend to specialist areas such as debt collection, loss of commission income, cyber liability, cash in transit and directors’ and officers’ insurance. ITIC’s wide cover also includes a unique discretionary insurance which could support claims not normally be paid by other professional indemnity insurers.

Thank You Torchbearers of Economy Logistics is the lifeline of the country and many at times your service to our nation gets unnoticed.

Our State Government in accordance with Government of India enforced the lockdown due to the COVID-19 Pandemic on 24 March 2020.

While most of us followed our government directive to stay at home and rightly so, some essential services like logistics industry comprising of CFS, CFS’s admin staff, container crane operator, yard in charge, system management staff, security personal, gate in charges, top management of CFS, doctors, fumigation agents, staff, facilitators, Customs officers, and most importantly drivers of container-laden vehicles, have put their life at risk and selflessly worked towards movement of import and export containers.

We at Fumigation Services salute you all from the bottom of our heart for the incomparable, unparalleled service even during this pandemic situation and for being the backbone of our economy.

THANK YOU

FUMIGATION SERVICES PVT LTD.,

36

No.1, Buddu Street, 3rd Floor, Chennai - 600 001

www.fumigationservice.com For Booking For PQ Arrangements For New Enquires

: 4242 7777, 2521 3409, 2522 1241 : 2521 7488, 2224 2175 : 2522 0626, 2522 5061, 2524 0672

booking@fumi.in pqfumigation@fumi.in fumi@fumi.in

Branches: Bangalore, Cochin, Coimbatore, Delhi, Guntur, Hosur, Hyderabad, Kakinada, Krishnapatnam, Mangalore, Mumbai, Mundra/Gandhidham, Tuticorin, Vizag

WASH YOUR HANDS OFTEN

AVOID CLOSE CONTACT

SANITIZE CONSTANTLY

WEAR A FACE MASK

AVOID CROWDED COVER COUGHS places AND SNEEZES

Port Wings - Maritime Exim Weekly Newspaper : Published by K.Sivakumar on behalf of Universal Media Associates, Old No.72, New No.149, 1st Floor, Srinivasa Complex, Linghi Street, Mannady, Chennai - 600 001. And Printed by V.Meganathan at Web Kingdom, No.115, Jani John Khan Road, Royapettah, Chennai – 600014. Editor: K.Sivakumar.