Budget ’18: Customs duty on Silk doubled to 20%, Concor expands operations to connect coast & hinterland, World’s first AI straddle carrier created in China & more weekly insights.

Issue #48: February 8, 2017

India Market Watch

• The new concept of coastal economic zone is taking shape. With may new ports coming up at various locations the cargo generation close to these ports will be cost effective for both import and export. Even the local distribution system with rail- road connectivity will make it more attractive.
  Tip: Shipwaves would like to advise all customers to look into this concept in their future expansion plan.There are many schemes available for the new upcoming ports where the state government is providing land and other facilities.
• Government has enhanced the All Industry Rates of duty drawback for 102 tariff items. The export items mainly include marine and seafood products, automobile tyres and bicycle tyres / tubes, leather and articles of leather, yarn and fabric of wool, glass handicrafts, bicycles, etc.
  Tip: Please refer to the notification №8/2018-Cus (N.T.) dated 22.01.2018, The enhanced rates of drawback will be effective from 25.1.2018.
• MahaSEZ plan at Nhava Sheva proposed by Reliance few years back is now changed into new industrial zone. It is to be developed by state Govt.. Domestic units.This zone will be connected by the coastal shipping and also newly developed rail and road.
  Tip: Since JNPT already has a project plan to develop SEZ close to port, this industrial zone will be a good opportunity for the manufacturing industry who can also use the SEZ for their EXIM cargo.

Container Freight Pulse

• Customs duty on silk fabrics doubled to 20% in Budget 2018.
  Finance Minister Arun Jaitley proposed doubling of customs duty on silk fabrics to 20 per cent to provide ‘adequate protection to domestic industry’. According to the Budget 2018–19, customs duty on silk fabrics has been raised from 10 per cent to 20 per cent. Silk exporters, however, said the move would hit shipments of silk garments from India. “In 2016–17, the export of silk garments from India was to the tune of USD 160 million against approximately USD 200 million in 2015–16. The duty impact is making our garments expensive in the international market”, T S Chadha Executive Director, the Indian Silk Export Promotion Council said.
• Exports interest subsidy scheme allocation hiked to Rs 2,500 crore.
  Seeking to encourage exports, the government has increased allocations towards interest subsidy scheme in the Budget to Rs 2,500 crore for 2018–19. Under the scheme, labour intensive export sectors get credit at affordable rates. The allocation for this scheme has been increased from Rs 2,000 crore in 2017–18. Further, the government has allocated Rs 80 crore for the Trade Infrastructure for Export Schemes (TIES). This scheme provides funds for projects having an overwhelming export linkage like border haat, land custom station, testing facility, certification lab, dry ports and export warehousing.

Container Shipping Sailing

• ONE Ready to Take Bookings from February 1.
  Ocean Network Express Pte. Ltd. (hereinafter referred to as “ONE”) announces that acceptance of bookings for its container shipping service begins in stages from February 1, 2018*.ONE is a joint venture of Kawasaki Kisen Kaisha, Ltd. (hereinafter referred to as “”K” Line”), Mitsui O.S.K. Lines, Ltd (hereinafter referred to as “MOL”), and Nippon Yusen Kabushiki Kaisha (hereinafter referred to as “NYK”) set to start its business operations on April 1, 2018.With the commencement of ONE’s business operations, there will be up to four companies, namely ONE, “K” Line, MOL, and NYK operating on the same service concurrently during the transitional period until three pre-existing lines completely stop operating vessels.
• NMPT decries stir by ‘outside’ union.
  New Mangalore Port Trust (NMPT) has said that All-India Port Workers’ Federation (AIPWF) is spreading false propaganda to tarnish the image of the port. This follows the indefinite stir by AIPWF members since January 29, seeking the implementation of labour laws by shipping companies involved in cargo handling at the port. Meanwhile sources in the port told that all the shipping activities inside the port are normal. However, the export-import trade and the port have made contingency plan to offset the impact of the stir by permitting the trade to stuff and de- stuff the containers inside the port so that the trade is not hurt, the sources added.

Shipping Infrastructure Roundup

• Concor expands container transport operations to connect coast and hinterland.
  The Container Corporation of India (Concor), an undertaking of Indian Railways, made operational an Inland Container Depot (ICD) — its second in the State — on the New Mangalore Port Trust (NMPT) premises. The first one is at Whitefield in Bengaluru. The corporation has confirmed orders to operate container services between Bengaluru and Mangaluru once a week, and if more traders evince interest it is prepared to increase the frequency of services.
• Inland Waterways Authority of India signs project agreement with the World Bank for Jal Marg Vikas Project on Ganga
  Inland Waterways Authority of India (IWAI) signed a project agreement with the World Bank, even as the latter entered into a US $ 375 million loan agreement with the Department of Economic Affairs, Ministry of Finance for Jal Marg Vikas Project (JMVP). The JMVP, which is expected to be completed by March, 2023, is being implemented with the financial and technical support of the World Bank. The project will enable commercial navigation of vessels with the capacity of 1500–2,000 tons on NW-I. The JMVP will result in an environment-friendly, fuel- efficient and cost-effective alternative mode of transportation, especially for bulk goods, hazardous goods and over-dimensional cargo.

Global Market Buzz

• World’s first AI straddle carrier created in China.
  A Chinese partnership has led to the creation of the world’s first artificially intelligent (AI) unmanned straddle carrier. Multinational engineering company ZPMC reported in January 2018 that its collaboration with Westwell Lab, an AI startup, had developed the straddle carrier in November 2017.The AI element of the straddle carrier is its ability to perform multiple functions without pre-embedded magnetic nails, which guide the automated machines throughout terminals around the world. ZPMC reported that the AI straddle carrier can automatically avoid obstacles, slow down, brake, bypass and make other smart decisions in case of emergency situations. It also stated that the machine is able to autonomously plan an optimal route for horizontal transportation of containers.
• Naval Dome cyber security solution tested on container ship
  Naval Dome has successfully completed the pilot testing of its multi-layered cyber security system for Lloyd’s Register aboard XT Shipping’s Zim Genova. The 4,300TEU container ship was operational during the tests, which were supervised by the classification society and bridge systems provider Totem Plus. Using intelligence agency security technology, Naval Dome’s cyber security solution is designed to prevent internal and external cyber-attacks with minimal human intervention. It integrates with existing systems and software, providing real-time cyber alerts and blocks malicious files to prevent unauthorised access to critical systems and data.

If you found this useful, we recommend that you subscribe to our weekly newsletter. No Spam. Promise!

Please share, tweet, and heart the article if you enjoyed reading it.

Shipwaves — Global Logistics Simplified — www.shipwaves.com