Exporters from Chennai would face an additional burden of $65 per TEU (twenty-foot equivalent unit) for every load of containers exported to Europe via Singapore and Port Klang, Malaysia.
The additional burden comes as the two feeder operators operating on Chennai - Singapore - Port Klang route have decided to implement Chennai trade recovery (CTC) of $65 per TEU, claiming poor infrastructure as a cause loss for their losses.
According to Sea Consortium Pte Ltd, one of the major feeder operators, it was decided to implement a charge of $ 65 per TEU (Laden) for all SOC containers from Singapore/ Port Klang to Chennai and vice versa with effect from December 15, 2010 for an initial period of three months. Chennai is served by six different feeder operators and only two of these have decided to impose the CTC.
S Raghavan, secretary, SICCI, said the EXIM trade cannot afford such additional cost against committed New Year shipments, fluctuating exchange rate and working with wafer thin margins. The larger interest of the trade should be considered.
However, shipping lines say they are left with no choice, but to pass on their burden to their customers. "This (CTC) is to help us recover the losses we have sustained over the past few months due to the operational and local infrastructure constraints imposed upon us in the Singapore/Port Klang - Chennai trade sectors," said one of the consortium members Bengal Tiger Line.
Industry representatives have attributed the CTC for delay in Chennai-Ennore Port road connectivity project, which results in pile up of containers inside the terminal at Chennai port. This has also resulted ships sailing 50 per cent of its normal capacity.
According to the figures compiled by the industry representatives, between November 14 and 23, the number of vessels that called at Chennai Container Terminal, a private terminal inside the Chennai port, was 13 and total booking stood at 11,633 TEUs, whereas load TEUs were only 6,229 TEUs and lost TEUs were 5,404.
