New Delhi, as efforts are being made to release a giant container ship stranded in the Suez Canal, the Indian government, in discussion with stakeholders, has decided that the Federation of Indian Export Organizations (FIEO), Seafood Export Development Authority (MPEDA) and the Agricultural and Processing Food Export Development Authority (APEDA) will jointly identify cargoes, in particular perishable goods, for priority movement.
Exporting authorities will also work with priority transport lines.
The government has come up with a four-point plan to deal with the situation arising from the blockage of the Suez Canal. The plan was outlined at a meeting convened by Logistics Department, Ministry of Commerce, Government of India on Friday.
The meeting was chaired by Pavan Agarwal, Special Secretary (Logistics) and attends the Ministry of Ports, Shipping and Waterways, ADG Shipping, the Container Shipping Line Association (CSLA) and the Federation of Indian Export Organizations (FIEO).
In addition to prioritizing cargo, the plan outlines that shipping lines have been advised by the CSLA to explore the possibility of diverting ships through the Cape of Good Hope. It was stated that such a diversion usually takes an additional 15 days.
CSLA also assured that freight rates under existing contracts will be met. With regard to shipping lines, a request has been made to maintain the stability of freight tariffs during this crisis. It was noted that the situation is temporary and unlikely to have a lasting effect, an official statement said.
“Once the blockade is over, some grouping is expected to take place, especially in the ports of JNPT, Mundra and Hazira. The Ministry of Ports, Shipping and Waterways has assured that it will issue advice to these ports to prepare arrangements and ensure efficient handling. during the forthcoming busy period, “it said.
The Ministry of Trade the declaration noted that the blockade of the suede channel from march on march 23 severely hit world trade.
This route is used for Indian exports or imports worth $ 200 billion to and from North America, South America and Europe. Includes petroleum goods, organic chemicals, iron and steel, automobiles, machinery, textiles and carpets, crafts, including furniture, leather goods, among others.
During the meeting, it was noted that more than 200 ships are waiting on the north and south sides of the Suez Canal and about 60 ships are added to the queue daily.
If two more days are taken before efforts are made to clear the canal (digging on both sides, adding additional barges at each tide and tugs to straighten the stranded ship), the total backlog will be around 350 ships. It is estimated that this lag should take about a week to close. During the meeting, it was decided to closely monitor the situation, the statement said.
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