Unclaimed Cargo Clogs Indian Ports
Indian Times and World Trade Magazine

AHMEDABAD: The meltdown in the West has started to clog Indian ports. Container Freight Stations (CFS) at two of Gujarat's biggest ports, Kandla and Mundra, are spilling over with unwanted goods. With the world having gone upside down in the last six weeks, importers are shying away from claiming their cargo and many exporters are busy re-negotiating deals with overseas clients. As against an average of 300 uncleared containers at any point in time, there are over 2000 containers lying unclaimed in the 16 CFS in and around both the ports, since the clogging started one month back.

Conjestion at the Inland Container Depot (ICD) in Ahmedabad has increased by 70% in the past couple of weeks alone. There are around 1800 containers lying unclaimed here.

"We have around 1900 containers unclaimed, mostly of scrap. Importers dealing in scrap have not come to collect their cargo because of the crash in prices. Also, the rupee depreciation has resulted in increased landed cost of cargo," said a Kandla Port Trust (KPT) official. Prices of scrap in local markets have crashed by almost half -- from Rs 33 per kg to Rs 18 per kg.

The scene is slightly better with exporters. "Some consignments of pharma and chemical companies too are lying as these firms are trying to re-negotiate with their foreign clients," said an Ahmedabad-based clearing and forwarding agent. Industry sources say an average of 4500 containers are exported from one ICD every month. Jyotindra Kothari, president of Ahmedabad Customs Agents Association, says "unclaimed containers are shooting up." Market sources said that decision of the central government to impose 5% import duty on steel could ease the piling up of scrap imports.