
Cargo boycott threat by Indian brokers over empty-box fee hikes
A new storm of stakeholder disputes, and potential operational disruption, is brewing across Indian ports over policy changes by container lines on empty-container handling and associated depot charges.
The loading and unloading of empty boxes at yards is the flashpoint for discontent and disagreement between supply chain intermediaries and carriers.
Maersk, for example, has substantially raised its lift-on/lift-off (lo-lo) charges for empties moving via Mundra, India's busiest container port and the primary gateway for the hinterlands around Delhi.
The revision, implemented from 1 November, effectively more than doubled the rates shippers had been charged, from $23 to $51 per 20ft empty box, and from $31 to $67 per 40ft, plus local taxes.
"Customers are requested to take notice of this change and make the necessary arrangements to ensure smooth container pick-up and drop-off operations," Maersk told customers.
Additionally, the carrier advised them to settle the charges directly with nominated depot service providers, an issue that had already become contentious at Chennai port.
Now the controversy is becoming industry-wide, as sources expect other carriers to issue similar trade notices for their 'empty' operations at Mundra. Ondeed, one liner source told The Loadstar: "We are discussing the matter."
At Chennai, MSC seems to be facing the brunt of a trade pushback against the practice of routing empty tariff collections through third-party depot vendors, which cargo agents claim opens the market to an unregulated environment.
"MSC has taken the lead in implementing this collection practice in Chennai, following which other shipping lines have initiated similar measures," the Chennai Customs Brokers Association (CCBA) noted.
The CCBA claimed the policy shift was fraught with "serious economic and operational implications for cargo agents", as it had seen third-party vendors keep inflating tariffs once taken over.
"Allowing third-party vendors to collect additional charges without adequate transparency or accountability would create an open-ended financial burden on the export/import trade, particularly customs brokers," it said.
The association also claimed its member agents - an integral part of India's supply chains - were being increasingly 'caught in the middle', with exporters and importers refusing to reimburse the add-ons that had found their way onto final customer bills.
Indeed, the CCBA has threatened to boycott MSC shipments if the new practice is not reversed by 15 November, and told The Loadstar: "Our association will follow the same stance in the case of other shipping lines seeking similar depot arrangements."
According to sources, some carriers serving JNPA (Nhava Sheva) have also switched to the practice of permitting nominated yards to collect lo-lo charges directly from shippers, despite strong resistance from the cargo-handling community.
"Any logistics cost increase ultimately goes straight down to the shipper, making it difficult to explain, or sort out," one forwarder said.
"Intermediaries add price mark-ups, an area Indian logistics policymakers have been trying to streamline through reforms," added one industry observer.