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How is Port Handling made easy?

How is Port Handling made easy?

20 Jan 2021

Port handling involves the handling of cargo properly and efficiently on its arrival and dispatch at the port terminal. This is a crucial job that involves loading and unloading of every kind of goods within a mentioned time frame and companies may have to pay heavy charges if the cargo on the port is not handled correctly and effectively. This task is a real test of time and resource management.

The process goes with multiple steps of formalities that involves the validation of goods with the documents. The top freight forwarding companies in India are coming with efficient tools and techniques for better port handling. Any act of compliance with the law could prove challenging and the company could pay a heavy charge.

How the Government has made port handling easier?

In the move to boost the economy of the transport and supply chain sector, the Central Government has given the provision to direct port delivery (DPD) clients and authorized economic operators (AEO) to pay terminal handling charges (THC) directly to the port terminal authority. This process intensifies the way the levy is collected. This move will reduce the struggle between the shipping companies and importer/exporter over common errors and issues. The decision according to the Central Board of Indirect Taxes & Customs (CBIC) will simplify the ease of doing business and saves thousands of crores of money on the trade and industry.

Lading Bill:

For container, terminal handling charges (THC) is levied by the port terminal authorities on the shipping companies for services such as unloading of the cargo containers from the ship and moving them to the storage yard for imports and vice-versa for exports. The shipping companies however recover this amount from the importers/exporters. This can be unacceptable and objectionable by some importers/exporters as few shipping companies charge higher terminal handling charges than the actual charges.

Impact of direct payment:

The move towards the payment of port handling charges directly to the port terminal authority will actually save between rupees 5,000 to 10,000 per container to the direct port delivery (DPD) clients and authorized economic operators (AEO). Because India’s traffic is almost one crore container, this will have a considerable profit gain for the industry and trade.

The shipping industry sources believe that for smooth enforcement, the new initiative requires changes to the Lading bill to make it “free-in, free-out” of containers, excluding THC.