Govt wants import duty hiked to max for farm produce, JNPT to reposition empty containers to cut congestions, J&K to develop trade infrastructure with DP World Dubai, and more weekly insights.

India Market Watch

• Construction of First phase of Multi-Modal Logistic hubs in Shendra Bidkin in Maharashtra, Dholera in Gujarat, Vikram Udyogpuri in Ujjain and IIT Greater Noida, is in advanced stage. The project at Shendra Bidkin is expected to start operations in March 2019. Operations at other facilities are expected to be completed by this December 2018.
  Tip: These hubs are developed by the Delhi Mumbai Industrial Corridor and Development Corporation (DMICDC).and it will provide all facilities like rail connectivity, processing activities and other supply chain solutions . Customers should look into their options.
• Coastal cargo movement has got a big push as first rake of coastal containers stuffed with domestic cargo from Jodhpur has been transported on a coastal ship at Kandla . There were many issues in handling coastal cargo in port since it gets mixed with EXIM cargo.
  Tip: With this successful trial run, there will be a change towards moving domestic cargo by sea from various inland destinations . Many domestic rail handling facilities will start handling coastal cargo.
• As advised in our previous NL. Central Govt. has identified 14 Coastal Economic Zones (CEZs) covering all the Maritime States and Union Territories as part of the National Perspective Plan under the Sagarmala Programme. Govt. will provide the details about the development of these areas after discussion with states.
  Tip: Shipwaves would like to advise all customers to check the possibility of utilizing this scheme . The list of 14 proposed CEZs identified in the National Perspective Plan for Sagarmala is available here.

Container Freight Pulse

• Tyre industry asks govt to allow duty-free import of carbon black.
  The Indian tyre industry has asked the government to allow tyre industries BSE -3.07 % to import carbon black on duty free basis, waive the anti-dumping duty on import of the product from China and regulate exports to overcome its shortage in the market. The crunch in domestic availability of carbon black has reached such an extent that several domestic tyre companies have been forced to shut down units in the recent past, the Automotive Tyre Manufacturers Association (ATMA) has stated in a representation to commerce ministry.
  https://economictimes.indiatimes.com/industry/auto/news/tyres/tyre-industry-asks-govt-to-allow-duty-free-import-of-carbon-black/articleshow/62985872.cms
• Centre mulls hiking duties on farm produce to maximum allowed limit to arrest fall in prices.
  The government is exploring options of whether it can increase the import duty to the maximum allowed limit for short periods to tide over the trend of falling prices of farm produce due to cheap imports. Sources said bumper domestic production and similar increase in production across the globe has triggered this proposal.
  https://economictimes.indiatimes.com/news/economy/foreign-trade/centre-mulls-hiking-duties-on-farm-produce-to-maximum-allowed-limit-to-arrest-fall-%20in-prices/articleshow/62957148.cms

Container Shipping Sailing

• Govt mulls allowing foreign vessels in coastal waters to boost
  shipping industry.
  The government is considering a proposal to permit foreign vessels to operate in Indian coastal waters with a view to reduce logistics cost, enhance port efficiency and boost domestic shipping industry, an official said. The move would facilitate transportation of cargo between different ports along the country's coastline. Currently, the Cabotage rules, which governs this activity, makes it difficult for foreign flagged vessels to handle cargo between two domestic ports. Ministries including shipping and commerce are working on the proposal, the official said adding the move would also help cut shipping rates and transportation time.
  http://www.news18.com/news/business/govt-mulls-allowing-foreign-vessels-in-coastal-waters-to-boost-shipping-industry-1660843.html
• CMA CGM, GRR — From India to South Africa
  CMA CGM informs its customers of the following General Rate Restoration:
  Effective March 1st, 2018 (B/L date): From India To South Africa All cargo dry, OOG and breakbulk
  USD 100/20′ — USD 100/40′
  http://container-news.com/cma-cgm-india-safrica/

Shipping Infrastructure Roundup

• Indian state embraces Dubai and DP World commitment.
  The government of Dubai, global port operator DP World and the government of Jammu and Kashmir have signed a Memorandum of Understanding (MoU) to explore opportunities to develop trade infrastructure in the Indian state. Discussions between all three parties will focus on establishing a multi-modal logistics park and hub in Jammu, comprising of warehouses and specialized storage solutions to encourage inter-modal transfer of containers, bulk and break-bulk cargo.
  https://www.porttechnology.org/news/indian_state_embraces_dubai_and_dp_world%20_commitment
• JNPT to launch Uber type model by March to evacuate and reposition
  empty containers:
  In a bid to cut congestion and bring down logistics cost for the trade, India’s hub port on the west coast — Jawaharlal Nehru Port Trust (JNPT) will commission an uber type model to evacuate empty import container for repositioning. Speaking at the 10th Biennial International Conference on Ports Shipping & Logistics organized by Bombay Chamber of Commerce and Industry, Neeraj Bansal, chairman in-charge, JNPT said, “We are on course to commission an Uber type model to pick up and reposition container and bring down the cost to the trade and industry by March. The court has given a verdict in our favour and the tender process has received response from 13 operators and we will finalize a few operators shortly.”
  http://www.hellenicshippingnews.com/jnpt-to-launch-uber-type-model-by-march-to-evacuate-and-reposition-empty-containers-neeraj-bansal/

Global Market Buzz

• Exchange for International Container Freight Launches Member Council
  Box Line Shipping Talent Added to Board of Directors. It has long been the vision of many, both in the supply and carriage of cargo, to introduce a container freight shipping exchange, much as bulk cargo contracts are negotiated, traded and settled in London on the Baltic Exchange. Hitherto various constraints have inhibited forward trade on such a basis, with aspirations never being realised, but in 2015 came the formation of the New York Shipping Exchange (NYSHEX) which is attempting to enable the box trade to operate to some degree on similar lines.
  http://www.handyshippingguide.com/shipping-news/exchange-for-international-container-freight-launches-member-council_8835
• System can predict container breakdown
  Researchers in Denmark claim to have developed a system that can identify problems with a refrigerated container before they break down. The transportation of perishable goods around the world requires refrigeration containers that can maintain the same low temperature throughout an entire trip. A broken refrigeration system often results in several tons of rotten fruit, spoiled meat or — even worse — an entire batch of life-saving medicines that are no longer usable. Although all modern refrigeration containers are equipped with a SIM card and a system that can sound the alarm if an error occurs, it is often impossible to repair a refrigeration container that is already on its way on a ship. So a defective container almost always means damaged cargo.
  https://www.coolingpost.com/world-news/system-can-predict-container-breakdowns/

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