Demurrage, detention charges waived off on Indian ports 

Ports have also been asked to allow deferment of April, May and June month’s annual lease rentals/licence fees on a pro-rata basis, without any interest if requested by the licensee. This shall be applicable only on the annual lease rentals/licence fee to be received by the port in 2020.

Shipping Ministry in its letter has said that there has been a drop in cargo volume at several Public-Private Partnership berths/terminals. Ports have been asked to allow deferment of April, May and June months’ revenue, royalty and equipment hire charges without any interest if requested by concessionaires. The deferred amount shall be paid by concessionaire after an interest-free period of three months or alternatively, through six-monthly equated instalments at an interest rate equal to RBI’s 91 days Treasury Bill. yield rate after the expiry of the interest-free period.

CNBC-TV18 had on April 21 reported on All India Non-Ferrous Metal Exim Association (ANMA) writing to the Shipping Ministry seeking a waiver of detention and ground rent on all containers parked at various ports of the country.

ANMA sought the mentioned relaxations as it expects the liquidity crunch to worsen post the lockdown period.

In a situation of this liquidity crunch, ANMA feels it will become very difficult for traders to pay the exorbitant detention and demurrage charges levied by shipping lines and ports/CFS/ICD.

According to ANMA there around 1,50,000 containers are lying at various CFS/ ICD/ Ports on which the detention and demurrage charges due could be around Rs 6,000 crore.