News / More pressure on shippers from new levy at container depots at Nhava Sheva

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Container depot operators in and around India’s Nhava Sheva port (JNPA) have announced an additional fee on empty containers allotted for export cargo stuffing.

Cargo owners must pay an extra levy of INR500 plus local taxes ($7), per box, charges aiming to cover lift-on/lift-off (lo-lo) operations for most major lines, including Maersk, CMA CGM and Hapag-Lloyd, according to industry sources.

The charges will be applicable at the time of container allotment for export shipments at Nhava Sheva, Maersk told customers, adding that they would need to settle the additional fee directly with the container yard/depot operator.

Given the magnitude of empty boxes needed for exports shipped on weekly mainline calls, the levy has measurable cost implications for Indian exporters already battling multiple headwinds boosted by tariff issues.

The Nhava Sheva Depot Container Association (NSDCA), an umbrella body for the local logistics industry, claimed its members already have had to deal with a sharp rise in operating costs, seriously impacting their margins.

These multiple factors include land lease rental changes, new labour employment demands, and other soaring operating costs tied in large part to energy price inflation, says the association.

It added: “Empty-container depots are a critical link in India’s logistics chain, and rising costs now threaten their sustainability and ability to deliver the service standards tat shipping lines and NVOCCs rely on at Nhava Sheva. This uniform charge is the least cost solution to keep operations stable while all gate procedures remain unchanged.”

According to carrier sources, the levy met some resistance from shippers and forwarders approaching yards for container pick-ups in the first few days.

“We have engaged with them to clarify the position,” one carrier source told The Loadstar.

JNPA handles a major portion of Indian containerised export trade, so the impact from any sort of disruption or operational changes is considerable – especially as the port continues its traffic growth momentum: handling 2.6m teu from April through July, up 12% year on year, according to new data.

Meanwhile, Indian exporters are anticipating a trade boost from the recent free-trade agreement between India and the UK, bringing the potential to double bilateral trade, to $120bn by 2030, from the current $60bn.

The Federation of Indian Export Organisations said the trade deal would “open unprecedented opportunities across key sectors, especially for micro small-to-medium enterprises and labour-intensive industries”.

“It not only reduces tariffs, but also eases regulatory barriers for services and investments.”