Tuesday, September 17, 2024

Onions worth lakhs of rupees pile up at ports and borders awaiting a system update

After a slash in the export duty on onions, the delay in updating the Customs Department’s software is costing traders and farmers dearly

The Vice President of Horticulture Produce Exporters’ Association said that if the issue was not resolved within a few hours, 35 containers that were slated to reach Tuticorin port in Tamil Nadu early on Tuesday (September 17, 2024) morning, would also be delayed | Photo Credit: The Hindu

Three days after the Union government slashed the export duty on onions from 40% to 20%, onions worth lakhs of rupees are stuck at India’s borders and ports, awaiting an update for the system, as a result of which farmers and traders have not yet been able to benefit from the export duty slash.

Around 380 containers are stuck at various ports of the country, including the Jawaharlal Nehru Port Authority (JNPA) in Navi Mumbai, while 90 lorries wait at two checkpoints on the border with Bangladesh, an official of the Horticulture Produce Exporters’ Association (HPEA) said. Each container carries about 30 tonnes of cargo, and each lorry carries about 25 to 30 tonnes.

“There is a technical issue in the Customs’ portal. There are two serial numbers on the portal for onions. But the portal does not process the order. We are unable to avail the 20% export duty. We can’t even send the onions with 40% customs duty. Our onions have been stuck for the last three days. Now we fear they will start rotting,” Vikas Singh, vice president, HPEA told The Hindu.

“Our containers are stuck everywhere. Tomorrow (Wednesday) morning, almost 60 containers are planned to be sent to Malaysia and Singapore. The vessel has been booked. But if the containers are not cleared in the system, the vessel will leave [without] these containers,” he said.

“Almost 300 containers are stuck at the JNPA since Friday evening. Nothing could be loaded due to lack of clearance. Fifty containers await clearance at the dry port of Janori in Nasik; 60 lorries have been waiting at Goja Danga check point on the Bangladesh border; and 30 lorries are at Mehndipur check point, also on the Bangladesh border,” Mr. Singh said.

He added that if the issue was not resolved within a few hours, 35 containers that were slated to reach Tuticorin port in Tamil Nadu early on Tuesday (September 17, 2024) morning, would also be delayed. “Tuticorin is the sub-port for Sri Lanka. The vessel, which has already been booked, will arrive on Wednesday. So those 35 containers will need to be cleared on Tuesday,” Mr. Singh said.

The HPEA is the only recognised association for exporters of onion, garlic, and horticulture, Mr. Singh said. “We have updated this [issue] to the Consumer Affairs Ministry, and to the Agriculture Ministry,” he added.

An onion trader who did not wish to be named rued the restrictions. “When the government imposes restrictions, the implementation is immediate. But while opening the system, why is there so much of delay? Each container is worth approximately ₹21 lakh. Today (Monday) is the third day and we are still suffering. On one hand, China is becoming very aggressive with respect to onions. And here, we face so many restrictions,” he said.

Sources in the Customs Department said there was a “system issue” that was being resolved. “Everything is being monitored. The communication has been sent to the concerned persons. It will be resolved soon,” a source said.

Published - September 16

Woman fined over take-for-free cabinet left outside her home

A woman has been handed a £500 fine for fly-tipping after leaving a cabinet for free collection outside her home.

Isabelle Pepin, from Southbourne in Bournemouth, said she left the piece of furniture out as it "still had some life left in it".

An enforcement officer issued the fine to Ms Pepin on her doorstep after warning her to move the cabinet off the street three weeks earlier.

Bournemouth, Christchurch and Poole Council (BCP) said: "Action on fly-tipping is taken to ensure communities can fully enjoy where they live and have pride in their neighbourhood."

Ms Pepin, who works as an artist, said residents in the area often left useable furniture out for a few days to see if it would be of use to someone else in the community.

She said: "I have been living here for 12 years and I been doing this for 12 years and I've never had any complaints or indication that this was something that was illegal."

After the warning, she moved the cabinet onto her driveway to be collected.

"People are very polite and probably wouldn't go on your property to take something because they'd be worried about that," she said.

'Help other residents'

Councillor Kieron Wilson, BCP Council's portfolio holder for housing and regulatory services, said: "The council is committed to tackling fly-tipping and has contracted Waste Investigations Support and Enforcement (WISE) to investigate offences and administer penalty notices on behalf of the council as appropriate.

"Officers closely monitor and manage this waste enforcement contract, which includes regular reviews, and a commitment to responding promptly to any issues or concerns that may arise."

Ms Pepin said she planned to appeal the fine.

She said: "I think we need to keep things out of landfill and help other residents."

A BCP Fixed Penalty Notice (FPN) for fly-tipping is £500 if paid within 14 days or £1,000 within 28 days.

The maximum penalty that can be imposed by the courts for fly-tipping is £50,000 or imprisonment.

Wednesday, July 10, 2024

SHIPPING NEWS.

Industry Calls for Measurement and Regulation to Tackle Methane Slip

Focusing on the problem of methane slip in the “well-to-wake” approach, an industry-led group released its first report detailing research, trials, and the required steps to create greater understanding and eliminate the problems of methane slip associated with liquefied natural gas (LNG) vessels. The report outlines the problems of accurately measuring the releases of unburnt methane while calling for the creation of a globally standardized measurement and monitoring framework and the creation of technology-centric regulatory frameworks to support the development and use of abatement technologies.

The initiative known as MAMII (Methane Abatement in Maritime Innovation Initiative) was launched in 2022 and led by the SafetyTech Accelerator from Lloyd’s Register with leading industry companies including Capital Gas, Carnival Corporation, Celsius Tankers, Chevron, Knutsen, Maran Gas Maritime, MSC, Mitsui O.S.K. Lines, MISC, NYK Line, Seapeak, Seaspan Corporation, Shell, Total Energies, and more. It was formed to address methane slip from ships and aims to support the steps required to reduce the environmental impact of LNG by reducing methane slip to near zero.

The group released its first report reviewing its detailed analysis looking at issues ranging from regulations to measurement and reporting, the efforts to abate, the cost of the technology, and the steps in the supply chain from the production through delivery and bunkering to use on the vessels.

They reiterate the industry’s position that new engines are making great strides in reducing methane slip while acknowledging challenges with older engines. They looked at other parts of the supply chain saying it will be easier to address issues upstream and during bunkering. They highlight deliberate releases during refueling or purging fuel lines as well as the need to identify and address leaks quickly.

The report concludes that the industry needs more data to assess the level and impact of methane released by LNG-fueled ships. Finding that it lacks unified and consistent measurement tools, MAMII reports it is already taking action by developing measurement guidance while lining up trials and focusing on the most promising solutions.

“From better engine combustion to the abatement or catalysis of harmful gases and the blending of hydrogen with traditional fuels, the range and potential of these technologies have exceeded our expectations,” said Panos Mitrou, Chairman of MAMII. “It’s clear that with informed and early decision-making, we have the tools to abate methane. Yet, without a universally accepted certification method or regulatory framework providing business-critical incentives, the progress and adoption of these technologies will face significant delays.”

They are also calling on the industry to “demystify well-to-tank emissions” as part of an effort to certify the performance of LNG producers and bunker suppliers. Addressing technology, they say further innovation is imperative as well as exploring combining technologies such as shaft generators and tools to tackle fugitive emissions.

Technology they report needs to be validated to demonstrate the credibility and accuracy of solutions. They believe that integrating methane into regulatory schemes will support the viability of abatement technology and support its development.

They point out the danger that lacking to take the steps could undermine the adoption of LNG-fueled ships as an alternative despite its potential to reduce emissions and reach targets to reduce carbon emissions.

Monday, May 27, 2024

Govt app to allow live tracking of cargo across land, rail, sea & air

India will launch an app that will enable companies to track live their cargo moving over land, rail, sea, and air, according to a report by the Economic Times (ET). The app has garnered interest from over 700 companies in courier, logistics, shipping, and manufacturing. These companies have signed up on the app that will be launched soon by the government.

This app aims to enhance tracking capabilities, providing real-time visibility into the movement of trucks, trains, and air couriers. This initiative is part of India's plan to streamline logistics, and reduce costs. India's logistics cost in Financial Year 2022 was 7.8-8.9 per cent of the country's gross domestic product (GDP). India wants to bring this down to 5-6 per cent. This app also aligns with India's broader plan to improve its ranking in the World Bank's Logistics Performance Index, which currently stands at 38, to below 25.

Reports said the app will be launched soon, however, the exact date of the launch and name of the app are still unknown. It is reportedly being developed by the National Industrial Corridor Development Corporation (NICDC), which will use specific tracking codes to track and trace consignments. They will also measure the reliability of consignment movement to provide real-time tracking details and vehicle visibility. This visibility is crucial as it would significantly lower lead time for the import-export cycle. This in turn would reduce inventory carrying costs, as well as improve empty container management.

The government is also separately working on ways to reduce the movement of empty trucks and containers. This will improve overall efficiency of logistics and reduce operations and maintenance costs..

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Retail, ecommerce create job openings for freshers and experienced professionals

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Friday, May 17, 2024

China's share in India's industrial goods imports jump to 30% from 21% in last 15 yrs: GTRI

Updated - April 28, 2024 at 01:23 PM. | New Delhi

“The Indian Government and industries must evaluate and potentially recalibrate their import strategies, fostering more diversified and resilient supply chains” - GTRI founder Ajay Srivastava With increasing India's dependence on Chinese industrial goods like telecom, machinery and electronics, Beijing's share in New Delhi's imports of such goods rose to 30 per cent from 21 per cent in the last 15 years, a report said.

According to the report by the economic think tank Global Trade Research Initiative (GTRI), the growing trade deficit with China is a cause of concern and the strategic implications of this dependency are profound, affecting not only economic but also national security dimensions.

From 2019 to 2024, India's exports to China have stagnated at around $16 billion annually, while imports from China have surged from $70.3 billion in 2018-19 to over $101 billion in 2023-24, resulting in a cumulative trade deficit exceeding $387 billion over five years.

“The Indian Government and industries must evaluate and potentially recalibrate their import strategies, fostering more diversified and resilient supply chains”, says, GTRI founder Ajay Srivastava .

This is imperative not only to mitigate economic risks but also to bolster domestic industries and reduce dependency on single-country imports, especially from a geopolitical competitor like China, he added.

"Over the last 15 years, China's share in India's industrial product imports has increased significantly, from 21 per cent to 30 per cent.

"This growth in imports from China has been much faster than India's overall import growth, with China's exports to India growing 2.3 times faster than India's total imports from all other countries," the report said.

In 2023-24, India's total merchandise imports amounted to $677.2 billion, with $101.8 billion of that coming from China.

This means China accounted for 15 per cent of India's total imports.

Out of these imports from China, $100 billion or 98.5 per cent were in major industrial product categories.

"When compared to India's global imports of these industrial products, which total $337 billion, China's contribution is quite significant, representing 30 per cent of India's imports in this sector. Fifteen years ago, China's share was just 21 per cent," it added.

The key sectors where New Delhi's dependence is rising significantly, include electronics, telecom and electrical; machinery; chemicals and pharmaceuticals; products of iron, steel and base metal; plastics; textiles and clothing; automobiles; medical, leather, paper, glass, ships, aircraft and remaining categories.

During April-January 2023-24, the electronics, telecom and electrical products sectors had the highest import value at $67.8 billion, with China contributing $26.1 billion.

"This represents a substantial 38.4 per cent of the total imports in this category, indicating a heavy dependence on Chinese electronic goods and components," it said.

In the machinery sector, China accounts for $19 billion, which is 39.6 per cent of India's imports in the sector.

This underscores China's key role as a supplier of machinery to India, Srivastava said.

Also read:Dumping duty imposed on industrial laser machines from China

India's chemical and pharmaceutical imports during the period stood at $54.1 billion. Out of this, $15.8 billion came from China.

This resulted in a Chinese share of 29.2 per cent, highlighting the importance of Chinese chemical and pharmaceutical products in India.

Similarly, the report said the total imports for plastics and related articles stand at $18.5 billion, with China providing articles worth $4.8 billion.

This accounts for 25.8 per cent of the total imports in this sector.

Srivastava also said that half of the imports from China consist of capital goods and machinery, indicating a critical need for focused research and development in this area.

Intermediate goods like organic chemicals, APIs (Active Pharmaceutical Ingredients) and plastics, which represent 37 per cent of imports, show a pressing need for upgrading these industries, he said, adding that consumer goods make up 12 per cent of the imports, while raw materials are less than 1 per cent.

The report added that many products imported from China, such as textiles, apparel, glassware, furniture, paper, shoes and toys are from categories dominated by micro, small and medium enterprises (MSMEs), and most of these items could potentially be produced domestically.

"Overall, India imports a broad array of products from China, from high to low technology items, highlighting significant gaps in India's industrial capabilities across various sectors," it added.

Chinese companies are involved in India's energy, telecommunications, transportation sectors and they play critical roles in smartphones, electronics, electric and passenger vehicles, solar energy, engineering projects and many other sectors, it said.

The report said that so far, imports were carried out by Indian firms but now with the entry of Chinese firms into the Indian market, India's industrial product imports are set to rise at an accelerated pace.

"As the Chinese firms operating in India will prefer sourcing most requirements from their parent firms, Indian imports will rise sharply. For example, in the next few years, every third electric vehicle (EV) and many passenger and commercial vehicles on Indian roads could be those made by Chinese firms in India alone or through joint ventures with Indian firms," the report said.

Also read:FinMin imposes anti-dumping duty on optical fibre imports from China, Korea, Indonesia

The large-scale entry of Chinese automakers into India will impact the domestic auto/EV manufacturers, firms working in the EV value chain space and battery development, it added.

Red Sea crisis: Maersk warns of major impact in Q2

Updated - May 06, 2024 at 05:21 PM.

Maersk said that effects of the situation in the Red Sea are widening and continuing to cause industry-wide disruptions Global shipping giant Maersk has warned that the knock-on effects of the Red Sea situation include bottlenecks and vessel bunching, as well as delays and equipment and capacity shortages. It estimated an industry-wide capacity loss of 15-20 per cent on the Far East to North Europe and Mediterranean market during the second quarter of 2024.

The situation also affects India as ships that start from Far East or China and heads to Europe or the Mediterranean and vice versa, transit via the transshipment ports of Singapore and Colombo, which are used by shippers in India. Containerised cargo from India is sent by smaller ships to these transshipment ports where they are carried on board ‘mother’ ships to destinations in Europe or UK or to the Far East.

Denmark’s Maersk, which has a large presence in India, said that effects of the situation in the Red Sea are widening and continuing to cause industry-wide disruptions. We are developing solutions with the goal of offering our customers greater reliability for their supply chains.

Also read: Maersk enhances ME2 service between India and North Europe, ensuring shorter transit times

“The complexity of the situation in the Red Sea has intensified over the last few months. To safeguard our crew, vessels, and your cargo, we are rerouting around the Cape of Good Hope for the foreseeable future. However, the risk zone has expanded, and attacks are reaching further offshore. This has forced our vessels to lengthen their journey further, resulting in additional time and costs to get your cargo to its destination for the time being,” the line said.

The knock-on effects of the situation have included bottlenecks and vessel bunching, as well as delays and equipment and capacity shortages. We estimate an industry-wide capacity loss of 15-20 per cent on the Far East to North Europe and Mediterranean market during Q2.

Maersk said that to boost reliability, including sailing faster and adding capacity, it has added additional capacity where possible, in line with customers’ needs. So far, the line has leased more than 1,25,000 additional containers.

Also read: Maersk increases rates by $1,000 per container to US and Canadian ports from India and West Asia

“You will see relevant surcharges on your latest invoices. These are to offset the costs of the longer journeys, increased sailing speed, and additional fuel costs. For example, we are currently using 40 per cent more fuel per journey and charter rates are currently three times higher, often fixed for five years,” the line said.

While Maersk reduced the Peak Season Surcharge (PSS) recently, it has been increased again to help cover the additional costs outlined above. “We will continue to review the surcharges regularly and will keep you up to date of any changes,” the line said.

A leather exporter said the surcharges have been increasing every month since the Red Sea crisis started in October 2023. The freight rate has more than doubled from India to destinations in Europe and the US, he said.

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