Tuesday, November 29, 2022

Kochi port - unaffordable?

In a setback for Kochi port, a section of Kerala-based exporters has decided to shift to major ports like Thoothukudi and Nhava Sheva in Navi Mumbai, citing unaffordable ocean freight charges, long transit time and hostile attitude of central agencies here. The 180-member Kerala Exporters Forum (KEF) claims a majority of exporters have decided to shift.

The Vegetable and Fruit Exporters Association stopped sending shipments from the port since 25 Nov, claiming that high freight charges and GST had made exports unaffordable. The volume of exports from Kochi port stood at 1,29,437.05 tons in August and 1,04,557.6 tons in September. 

Kerala exports 250 tons of fruits and vegetables by air per day and 375 containers of vegetables by sea per month. The freight charge for a 40 ft container from Kochi to Jebel Ali (Dubai) is $1,545 against $533 from Nhava Sheva port. The VKC group which ships around 120 to 150 containers of footwear a month, has already shifted to Navi Mumbai.

Exporters also complained that the delay in transit of cargo from Kochi was causing loss of business. 

"A container shipped from Kochi takes 14 days to reach Jebel Ali (Dubai), 18 days to reach Doha (Qatar) and 22 days to reach Jeddah (Saudi Arabia). The same consignment from Navi Mumbai reaches the GCC countries in five days. Containers from Kochi are first taken to Colombo port where they are transshipped and sent to their destinations. This delays delivery.

Agricultural products sent by ocean freight from Kerala include tapioca, banana, drumstick, ginger, purple yam, yam, coconut and colocasia.

The high freight charges and GST have made vegetable exports unaffordable. Sri Lanka, Pakistan and Bangladesh are delivering the same products at cheaper rates.

My take

Is the Mallu arrogance and reticence that are the root cause? The work culture definitely needs to improve.


Tailpiece.

Got up at a quarter past 6, the chores and was ready by 10. Subin fetches up in the morning itself to clean the overhead fresh water tank.

Off to the bank and the supermarket for sundry purchases.

Selvam comes and presses the backlog of clothes.



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