Informist, Thursday, Sep 19, 2024

--Goyal: Discussed geopolitical, global issues with various ministries

--CONTEXT: Goyal met shipping, ports, rail, aviation, fin min officials

--Minister Goyal: Discussed exporters, importers' challenges today

--Minister Goyal: Took decisions today to ease air cargo congestion

--Goyal: Rail min to let exporters use space for container storage

--Goyal: Rail min to give exporters discount on storing containers

--Goyal: To again meet Oct-end to discuss issues related to logistics

--Goyal: Freight charges seen down about 30% over next few months

--Ports secy: To buy 5 extra container vessels to aid logistics

--Ports secy: Shipping Corp to buy more container vessels

--Revenue secy: Working to further cut turnaround time at ports

--FIEO Sahai: Freight rates constantly coming down

--FIEO Sahai: Hope freight rates will soften further in next few mos

--FIEO: To see impact of logistics decisions taken today in next 2 mos

NEW DELHI – Amid a difficult geopolitical situation, the government today took steps to ease the logistics-related challenges faced by Indian exporters and importers, Commerce and Industry Minister Piyush Goyal said.

At a meeting attended by various ministries and industry associations, the government decided that the railway ministry will allow exporters to use its space to store containers. The railway ministry will also give exporters discounts on storing containers, Goyal said while briefing the media about the meeting.

In recent times, exporters and importers have faced issues related to logistics--such as container shortage, high freight rates, and air cargo congestion--due to the ongoing geopolitical conflicts in West Asia and the Russia-Ukraine war.

The government plans to buy five second-hand container vessels to ease the logistics issues, Ports, Shipping and Waterways Secretary T. K. Ramachandran said at the media briefing. The Shipping Corp of India will separately buy container vessels and the company has already placed order for one vessel, Ramachandran said.

The logistics challenges faced by exporters and importers were not just owing to freight charges, but because of space issues for ships and containers, said Ajay Sahai, director general and chief executive officer, Federation of Indian Export Organisations.

Revenue Secretary Sanjay Malhotra said the government is also working to reduce the turnaround time at ports.

Goyal said he has asked the Ministry of Civil Aviation to ease air cargo congestion. Freight charges are expected to come down by nearly 30% over the next few months, he added.

Sahai also said that freight rates are constantly coming down, and he is hopeful they will soften even further in the next few months. The impact of today's decisions are likely to be reflected in the next two months, he said.

The government will hold another such meeting by October end to discuss issues related to logistics, Goyal said. End

Reported by Priyasmita Dutta

Written by Shubham Rana

Edited by Vandana Hingorani

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