Ocean carriers and trade stakeholders using container terminals in and around India’s southern Chennai corridor are facing serious cargo delays due to a trailer strike that began on 4 July.
Around 4,000 vehicle owners – engaged in intra-city (container freight station, CFS) cargo movement — are demanding a revision in hire charges. The stoppage covers terminals in the ports of Chennai, Ennore and Adani Group-owned Kattupalli.
“We have asked for an 80% increase in the current rate slab,” a trailer operator told Container News, adding, “Our appeals have not been considered by the CFS group.”
All CFSs in the Chennai region operate under the aegis of the National Association of Container Freight Stations (NACFS).
Trailer owners are now seeking Rs. 6,120 (US$77) for a 20-foot container move and Rs. 12,240 (US$154) for a 40-foot box trip, up from Rs. 3,400 (US$43) and Rs. 6,800 (US$86), respectively.
However, CFS owners say trailer rates are already high and a steep revision would not be accepted by their clients.
While talks have failed to break the deadlock, stakeholders are expected to meet again today (7 July) for another round of negotiations.
The disruption has already led to a buildup of import containers and some export loads missing sailings, according to industry sources.
Due to on-dock space constraints, export cargo is generally transported into an off-dock CFS before it is gated into the terminal and loaded on to the ship. Similarly, import cargo is wheeled into a CFS for clearance by the consignee or his agent.
Carrier officials have also noted concerns over the trailer walkout in Chennai.
“Container movements from the CFSs to the port and also of factory-stuffed containers into the ports of Chennai, Kattupali and Ennore have indeed been impacted,” Container Shipping Lines Association (CSLA) told Container News. “However, talks are on between the transporters and the concerned stakeholders and hopefully the matter would be resolved soon.”
The southern India region has limited direct sailing connections and, as such, much of export-import cargo to/from there is relayed over Sri Lanka’s Colombo Port. Even this transshipment mode is facing increasing challenges due to the economic/political crisis plaguing Sri Lanka.
In recent weeks, terminals on the Indian east coast have had several ad-hoc mainline calls as a result of congestion or delays at Colombo and the Chennai cargo flow disruption comes amid accelerated efforts to convert some of the temporary visits into regular services by offering deep tariff incentives.
Jenny Daniel
India correspondent
Contact email: j.daniel@container-news.com
