Piyush Goyal Announces Shipping Reforms To Support Indian Exports

ENA Sectors 2024-09-20 17:36:30 New Delhi, Sep 20 (KNN) In response to a significant 9 per cent decline in August exports, the Indian government has launched a series of measures aimed at addressing container shortages and shipping issues. Commerce and Industry Minister Piyush Goyal announced these initiatives following an inter-ministerial meeting. Key measures include the Shipping Corporation of India's (SCI) decision to purchase five new container ships and charter additional vessels. This initiative aims to increase shipping capacity by 9,000 twenty-foot equivalent units (TEUs), helping to alleviate bottlenecks in export logistics. To further support exporters, a waiver of various charges has been introduced to lower overall costs. This will make Indian exports more competitive in international markets by reducing logistical expenses. Additionally, the Container Corporation of India has taken significant steps to reduce container handling fees, offering substantial cost relief to exporters. This move is expected to improve the ease of doing business for MSMEs and larger export firms alike. Ports have also been instructed to reduce vessel turnaround times and increase the installation of scanners to address long queues. These enhancements will help streamline port operations, enabling faster processing and movement of goods. Customs authorities have been advised to review and improve risk-based assessment procedures. The goal is to expedite the processing of export containers, further accelerating India's trade operations and reducing delays in shipping. The government's actions come amid observations of cooling freight rates. For example, the cost of shipping a 40-foot container from Mundra to the UK has decreased from USD 4,000 to USD 3,200 between July 24 and September 24. Industry sources suggest rates could potentially drop further to USD 1,800-1,900 as demand from China diminishes. The inter-ministerial meeting highlighted specific challenges, including shortages of specialised containers such as refrigerated and open-top units, as well as issues with shipping space availability and schedule disruptions. In addition to these measures, empty container yards will now be required to register for GST, accept digital payments, and cease cash transactions. These initiatives reflect the government's proactive approach to supporting the export sector and addressing logistical challenges in the global supply chain. (KNN Bureau) 39355 https://knnindia.co.in/news/newsdetails/sectors/piyush-goyal-announces-shipping-reforms-to-support-indian-exports 2024-09-20 17:36:30 knnindia.co.in Piyush Goyal Announces Shipping Reforms To Support Indian Exports