JNPT Port Services limp back to normal after truckers strike, Govt scraps export duty on sugar, drops plan to raise wheat import tax, ONE launches new services between Indian Ocean, Middle East, and Europe and more weekly insights.

India Market Watch

• Government is preparing Multimodal Transportation of Goods (MMTG) Bill, 2018. It will bring all MTO under selective umbrella.Every operator SRO could be a voluntary association or a federation of associations consisting of members involved in Multimodal Transportation of goods. The association then needs to apply to the Director General of Shipping for getting registered as an SRO. Every registered SRO will have to grant a certificate of commencement of business to its members, maintain a dedicated website and online database and details of services provided by members along with their tariff.

Tip: It will help exporters and importers to have multiple choice and more competitive rates and higher level of information for their shipments. We will keep you updated on this development.

Jnpt port services are coming back to normal. Management seems to have resolved the internal transportation issues with the vendor. Vessel operation was hit due to non- availability of sufficient trailers at the berth.

Tip: Due to delays, few vessels have skipped JNPT call helping system to bring the normal fixed window system in place. Shipwaves would like to advise all customers to plan their shipment from JNPT.

As per Public notice No 40/2018, JNP Customs has clarified DEPB Script use
i) Once importer declares their intention to use DEPB Scrip, during the filing of the Bill of Entry, he will not be allowed to change that option during assessment stage.
ii) If the duty payable as per the Bill of Entry is more than whole amount available in the DEPB scrip, then whole amount available in the DEPB scrip needs to be used for payment of duty.
iii) If the duty payable as per Bill of Entry is less than the credit amount available in DEPB Scrip, then total duty amount needs to be paid by using DEPB scrip

Tip: For further details, please read the notice.

Container Freight Pulse

• Govt scraps export duty on sugar to trim surplus, lift prices.
  The government on Tuesday (20 th March) scrapped the 20% export duty on sugar in a bid to boost overseas sales of the commodity and lift its domestic price. The country is facing surplus production of the sweetener. A notification issued by the finance ministry said the estimated revenue implication of the move is Rs 75 crore for a year at current export volumes. In order to reduce the closing stock of 2017–18, the industry aims to export 1.5–2 million tonnes of sugar till October 2018, when the new sugar year begins, industry executives said. Last month, the government doubled import duty on sugar to 100% and restricted sale by mills to keep a checking on falling prices.
• India drops plan to raise wheat import tax, indicating output deficit.
  India has dropped a plan to double a wheat import tax to 40 percent, two government sources said, in a sign it expects imports to make up for a shortfall in domestic production for the third year in a row. As late as a few weeks ago, the food, trade and finance ministries were considering hiking the tax to 40 percent to ensure that local prices remained steady and millions of domestic farmers got good returns for their harvest.

Container Shipping Sailing

• ONE launches new services between Indian Ocean, Middle East, and Europe.
  SM Line announced on February 2 that the shipping company would cooperate with global shipping ONE announced the launch of two new direct services covering Indian Ocean, Middle East, and Europe. The first sailing of each loop will be in week 14 from Asia.
  IOS: Indian Ocean Service Rotation: Jebel Ali — Karachi — Nhava Sheva — Mundra — Jeddah — Tangier — Rotterdam — Hamburg –
  IO2: Indian Ocean Service 2 Rotation: Port Bin Qasim — Nhava Sheva — Hazira — Mundra — King Abdullah — Gioia Tauro — Tangier –
• GatewayRail’s service from Mundra to ICD Sanehwal
  GatewayRail recently achieved another milestone by starting a weekly, dedicated train service, for Khanna Paper Mills Ltd, from Mundra Port to its ICD Sanehwal, Ludhiana. The first train was flagged off on March 7, 2018.This is a collaborative effort between GatewayRail, Khanna Paper Mills, DP World Mundra and Adani Ports & SEZ at Mundra Port towards a scheduled service regime. GatewayRail has commenced this dedicated service as a strategic partnership with Khanna Paper Mills, to strengthen ties with the manufacturing company. This is the second such service introduced by GatewayRail for a major customer in the import direction.

Shipping Infrastructure Roundup

• Construction of multi-modal terminal at Haldia to start next week.
  The formal construction of a multi-modal terminal at Haldia in West Bengal is expected to commence next week with Union Shipping Minister Nitin Gadkari likely to be present at the foundation stone laying ceremony, an official said on Saturday(17 th March). The minister is expected to lay foundation stone for the multi-modal terminal at Haldia along with the new navigational lock gate and River Information System (RIS) at Farraka," said a senior official of the Inland Waterways Authority of India. The IWAI is developing the NW-1 from Varanasi to Haldia under the Jal Marg Vikas Project, with assistance from the World Bank.The estimated project cost has been revised upward to Rs 5,369 crore from the initial estimation of Rs 4,200 crore.
• DP World-NIIF venture buys Continental Warehousing.
  IGlobal port operator DP World Ltd in partnership with India’s National Investment and Infrastructure Fund Ltd (NIIF) has acquired multi-modal logistics firm Continental Warehousing Corporation (Nhava Sheva) Ltd (CWCNSL). The deal will help DP World gain access to CWCNSL’s warehouses, four container freight stations (CFS), three rail-linked inland container depots (ICD), private freight terminals (PFT) and other integrated logistics solutions. CWCNSL’s logistics network is spread across key strategic locations such as Nhava Sheva (Mumbai), Chennai, Tuticorin, Panipat, Ahmedabad, Hyderabad, Indore, Kakinada and Visakhapatnam covering over 400 acres capable of handling more than 660,000 twenty-foot equivalent units (TEUs) a year.

Global Market Buzz

• Maersk hit by second ship fire during March
  Maersk Line, the world’s largest container shipping carrier, has reported a fire starting inside a container on one of its vessels, the second fire to strike the carrier line in the last month. The company stated that on March 16, 2018, at 20:50 EST, the 6188 TEU Maersk Kensington reported a container on fire in a cargo hold while travelling from Salalah, Oman, towards Suez.
• Karachi Port Trust (KPT) commenced an operation today to recover shipping containers that had fallen into the sea on March 19.
  Hapeg-Lloyd’s ship 8,000-TEU Tolten which was carrying transit- containers collided with another vessel 6,350-TEU Hamburg Bay in the process of being given the alongside South Asia Port Terminal Limited (SAPT) berth on Monday. Both vessels were docked at the Karachi Port soon after the incident took place. At least 21 containers, carrying imported cars and freight worth millions of rupees, had fallen into the sea as a result of the collision that damaged the berth and the parked vessel.

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