News / Can we have our boxes back? plea by shippers as docks fill up

Container lines are receiving a wave of “back-to-town” requests from Indian shippers and cargo agents unable to find a vessel connection for shipments already on dock.

Industry sources say this affects cargo  bound for the Middle East and other export destinations via transhipment, as ocean carriers have suspended services to ports across the Gulf because of security concerns.

In shipping parlance, ‘back-to-town’ is the process of withdrawing export cargo from a customs bonded area, including port terminals and container storage yards, after it has entered the supply chain.

According to sources, container retrieval requests have been mostly for perishables as they run the risk of spoilage and waste, in addition to cost consequences for shippers at the load port on account of overstays.

“We have already received back-to-town requisitions for some 200 containers,” one European carrier executive told The Loadstar. “Exporters should be able to release those commodities to the domestic market.”

India is a large exporter of agricultural products to markets in the Gulf Cooperation Council (GCC). According to available data, the value of India’s agri exports to the GCC exceeded some $50bn and trade setbacks will be substantial if shipping suspensions do not ease or end anytime soon, sources believe.

Additionally, all major carriers have imposed hefty emergency surcharges on containers moving to/from the Middle East region, adding to shipper concerns over holding cargo longer in anticipation of service resumption.

As the shipping gridlock continues, Indian ports and off-dock yards are already clogged with hundreds of stranded export boxes following a total suspension of Persian Gulf services, according to market reports.

“We have suspended all new bookings between the Indian Subcontinent (India, Pakistan, Bangladesh and Sri Lanka) and the Upper Gulf markets of UAE, Bahrain, Qatar, Iraq, Kuwait, and Saudi Arabia (Dammam and Jubail only),” Maersk said in an update.

And in another precautionary measure, the carrier has suspended accepting dangerous or hazardous goods for shipment to and from Israel until further notice.

NVOs have typically controlled a significant portion of capacity on the India-Middle East trade, as mainline carriers search for cargo support in short-haul markets.

UAE-based NVO CargoGulf told customers it had been forced to suspend or decline bookings and consider implementing war-risk surcharges for affected trades.

“As a result, shipments to and from affected ports may experience delays, schedule changes, routing amendments, extended transit times, or other operational adjustments,” CargoGulf said.

Sensing the magnitude of the crisis, Indian government officials this week held talks with exporters and other industry representatives to assess the situation and evaluate steps to mitigate trade disruption.

Industry bodies urged Indian authorities to provide demurrage relief for export air freight stranded due to widespread flight disruption.

“Under the existing tariff structure of cargo terminal operators, demurrage charges become applicable when cargo remains in terminal facilities beyond the stipulated free period,” India’s Apparel Export Promotion Council told the government. “The delays [here] are solely attributable to external and unforeseen factors beyond the control of exporters, customs brokers, freight forwarders, or air cargo agents.”