Half of sea trade may halt from August 1

Come August 1, half of India's ocean trade may come to a standstill. This follows the Centre's directive to all major ports to ban from August 1 the entry of vessels which do not have a Protection and Indemnity (P&I) cover from government-approved clubs.

Over 50 per cent of vessels calling at 12 major ports are not covered by government-approved P&I clubs. All major ports have issued circulars to shipping companies and agents against vessels entering ports from August without a valid P&I cover.

Though the big players have the requisite cover, 50 per cent of the cargo is carried by small players in tankers, bulk carriers, barges, and other small container vessels, without a cover from the approved agencies.

Indian National Shipowners' Association (INSA) Secretary General S S Kulkarni said the move would adversely impact small off-shore and coastal shipping operators.

"This will bring half of the country's ocean trade to a halt. The Centre should keep this order in abeyance for at least six months," he said.

A senior government official said :"The idea behind the rules was to regulate the entry of vessels to check pollution damage caused by spillage of oil or other hazardous and noxious substances. There are over 30 to 40 wrecks lying on the Indian coast which can cause severe damage to plying vessels."

Significantly, there are only 13 P&I clubs in the world that are approved by the Indian government.