In news : Recently, a Four-point plan has been chalked out to deal with the situation arising from the blockage of Suez Canal
About Four-point plan
- This plan was chalked out in a meeting convened by the Logistics Division, Department of Commerce, Ministry of Commerce & Industry.
- The meeting was chaired by Shri PawanAgarwal, Special Secretary (Logistics) and attended by the Ministry of Ports, Shipping and Waterways, ADG Shipping, Container Shipping Lines Association (CSLA) and Federation of Indian Export Organisations (FIEO)
This plan includes:
- Prioritisation of cargo: FIEO, MPEDA and APEDA will jointly identify cargo particularly perishable cargo for priority movement and work with the shipping lines for the same.
- Freight Rates: CSLA assured that the freight rates as per existing contracts will be honoured. A request has been made to the shipping lines to maintain stability in freight rates during the period of this crisis. It was noted that the situation is temporary and is unlikely to have a long-lasting impact.
- Advisory to Ports: Once the blockage is over, it is expected that some bunching may take place, especially at the ports of JNPT, Mundra and Hazira. Ministry of Ports, Shipping and waterway assured to issue an advisory to these ports so as to gear up arrangements and ensure efficient handling during the forthcoming busy period.
- Re-routing decisions: Shipping lines were advised through CSLA to explore the option of re-routing of ships via the Cape of Good Hope. It was pointed that such re-routing usually takes 15 additional days’ time.
Blockage of Suez Canal
Blockage of the Suez Canal since 23rdMarch 2021 is seriously hitting the global trade. This route is used for Indian exports/imports worth US$ 200 Bn to/from North America, South America and Europe. It includes petroleum goods, organic chemicals, iron & steel, automobile, machinery, textiles & carpets, handicrafts including furniture, leather goods, etc.
Container Shipping Lines Association(India)
Popularly known as CSLA, it is an eminent association of foreign container shipping lines operating in India which presently has 25 members. The Bombay Chamber of Commerce & Industry as its allied services, provides Secretarial Service to CSLA.
Federation of Indian Export Organisations (FIEO)
- It is the apex trade promotion organisation in India set up by the Ministry of Commerce, Government of India, and the private trade and industry segment in 1965.
- The organisation is responsible for representing and assisting Indian entrepreneurs and exporters in foreign markets
- It provides the crucial interface between international trading community of India & the Central and State Governments, financial institutions, ports, railways, surface transport and all engaged in export trade facilitation