Date: 2020-03-31Category: DGS OrderState: Union GovernmentCountry: India
Advisory on non-charging of any demurrage, ground rent beyond the allowed free period or any performance related penalty on non-containerized cargo during the period of effect of COVID-19 pandemic.
**Executive Summary**
DGS Order No. 08 of 2020, issued on March 31, 2020, advises against charging demurrage, ground rent, or performance-related penalties on non-containerized cargo beyond the allowed free period, from March 22, 2020, to April 14, 2020. This advisory addresses delays in cargo evacuation due to the COVID-19 pandemic lockdown and aims to maintain the supply chain. The advisory is for Indian seaports, shipping companies, and carriers.
**Key Points / Main Content**
* **Exemption/Remission of Charges:**
* Shipping companies/carriers should not charge demurrage, ground rent, storage charge, additional anchorage charge, berth hire charge, vessel demurrage or any performance related penalties on cargo owners/consignees.
* Exemption/remission applies to non-containerized cargo (bulk, break-bulk, and liquids cargo), whether LCL or not.
* **Timeframe:**
* The advisory covers the period from March 22, 2020, to April 14, 2020 (both days inclusive).
* **Lockdown Measures:**
* The charges should not be applied when delays are attributable to lockdown measures.
* **Free Time:**
* The exemption/remission is over and above existing free time arrangements.
* **Additional Charges:**
* Shipping companies/carriers are advised not to impose any new or additional charges during this period.
* **One-Time Measure:**
* The decision is a one-time measure to factor in the current situation arising out of the COVID-19 pandemic.
* **Passing on Benefits:**
* There is a need to ensure that the benefits extended by the ports are passed on to the end customer
**Impact Analysis**
**Shipping Companies/Carriers and their agents:**
* **Impact:** Loss of revenue due to the waiver of demurrage, ground rent, and other charges.
* **Action Required:** Refrain from charging, levying, or recovering the specified charges during the specified period and ensure that benefits extended by the ports are passed on to the end customer.
**Cargo Owners/Consignees (of non-containerized cargo):**
* **Impact:** Cost savings due to the waiver of demurrage, ground rent, and other charges.
* **Action Required:** Be aware of their rights under this advisory.
**Indian Seaports:**
* **Impact:** Possible decrease in revenue due to exemption or remission on charges.
* **Action Required:** Comply with the directives from the Ministry of Shipping and ensure that the benefits are passed on to the end customer.
**End Customer in EXIM Trade**
* **Impact:** Possible cost savings due to benefits being passed on to the end customer
* **Action Required:** Enquire for benefit to be passed on.
Key Entities Referenced
Ministry of Shipping: Government of India ministry responsible for directives related to demurrage and ground rent at ports during the COVID-19 pandemic.
Ministry of Home Affairs: Government of India ministry that issued lockdown orders referenced in the shipping advisory.
DGS Order No. 08 of 2020: Directive advising against charging demurrage, ground rent and performance penalties on non-containerized cargo during the COVID-19 pandemic.
COVID-19 pandemic: The global health crisis that necessitated the advisory due to lockdown-related delays at ports.
Indian seaports: The locations to which the demurrage and rent advisory applies.
tffir ff$$Tri G$vliRiti ur:$t {}s ll!i[}lA
{[ffi qksrrimrr{ i MIt( }$ t:t{y $s tint ppli\{;
*wryt&eqnnq.
Xf*
n I Rg,CTORif TIi {"r X N tr' ft"A t, C}Ii $H trf f I N G, M I" i M fi AI
(l)/ 2!l!
I'.No. M'l'0/Review Sch*dule-ll I)ated 31.03.20?0
DGS Order No. 08 of 2020
Sub.: Advisorv on non-chareing of anv demurrage. ground rent bevond the allowed free
period or anv- performrnce relaled penallv on nqn-conlainerized carqo during the
period of elfect of Coyid-I9 oandemic.
l. Whereas, dre Ministry of llome Aflbim, (iovernment ol'lndia has issued order No 40-
312020-DM-I (A) dated 24.03-?020 to imgxrse a complete kxkdown in lndia lbr a
periul of 21 days in view of the threat poxd hy the spread of COVII)*I9 pandemic.
7. Whereas, the Ministry of llcme Altlirs has vide its orrjcr No 40-3/202$-DM-l (A)
dated 25.03.2020 issued an addendunr to thc $uidelines anncxed to the said ords.
exempting :isa$)rL.i and ils optrational organisations from this lorkdown !o ensure
regular supply of gtxxls in the eountry.
3. Whereas, the (iovernment is rvorking towards smooth l'unctioning ol'the l'tlrts and its
operational organisations. given the nation-r.vidc ltrckdown $omc delays in evacuation
of goods ftom the p,orts have heeome inevitrhle due to thc atlbct on lhe down-stream
serr*ices.
4.
Whereag as a result of these developmenls some cargo owners have either suspended
their operations or are {inding it difiicult to uanslx)rt good#cargo and complete the
pa;xr wtrrk, resulting in imEr,tition of demurnrge, grountl rent beyond the allowed
tree period peml anchorage/berth hire charges l:md other perlt)rmance related
peualties, due to rcasons treyonr! thcir control.
5. Whereas, the Ministry ol Shipping. (iovernment ol'lntlia has dire,cted all &e qajor
port-s vide Ir. No. Pl) -143fi1/4120?0 PD Vtl datetl 31.()1.2020 to consider
exemption or remission ol'denrurragc, gruund rcnt bc)()nd allorved liee greriod, penal
anchorage,/berth hire chargrs and any other pcrlirmrance related penalties that may belevied on Fxt related activities ti:rr the reason$ arributable to lock down measures i.e.
lrom 3?nd March to l4rh April, ?020.
6. Whereas. a D(iS Order No. 0? o{'2020 dated 29.03.2020 has been issued advising on
non-charging of conlriner detention charges on import and export shipmenrs. Since it
has betn tlecided tei grant exe,mption or remissiun on the chargcs inilicatrd at para 5
akrve by the rnainr F)rLc. therc is a need to ensure that the hencli* extended by the
porls are passed on ttt the end customer. lirr the period mentioned above. in the l:XIN,l
trade in non+ontainerized carpo also (i.e. hulk. hreak-bulk antl liquitls cargo) lirr
smfi)th lunctioning ol'the trade and maintenance ol'supply chain in the country.
7. Now there{irre. in order Io maintain proper supply chain at the Indian seaportri"
shipping cnmpanies or Carriers (ancl rheir agents hy whatever n&me called) are
advisctl not l^tl charge, levy or rscover any clemurrage, gnrund rent beyond allowed
fiee period, storage charge in the fxrr! additional anchcrage charge, berth hire charge
or vessel demurrage or any perlbrmance related penalties on cargo nwnefi*Is$nsignees
of non-c*nl*inerizcd curgo (i.e. bulk, brake hulk and liquids cargo) whethsr t.Cl, or
not, tor the preriod fi'om 22nd March, 2020 to t4th April, 2020 (tath days inclusive).
due to delay in evacuation ol'cargo caused hy reasons attritrutable tcr lnckdown
measures since 22'd Mirch" 203{). lhe abovc exemption/remission shall tre over antl
above lree time arrangemenl that is currentl]' agreed and availed &s part pt'an1,
negotiated cnntractual terms. Ouring this perioel the shipping companies or carriers
(and their agentsi are also advised not to imgxrsr ary new or additional charge. 'lhis
decision is a onetime measure to fuctor-in the present sifuation arising out of the
COVID-19 pandemic.
qmM*,,
Director General nf Shipping
1b
l. All stakeholdem concsrned, t"hrough IXiS Website.
2. Shipping Corporation r:l'lndia. N{umhai.
3" lndian Ports Association. Nerv Delhi.
4. Indian llrivate Ihtu & l'erminalAssrrciation. Mumhai.
5. Container Freight Station Asxtc.iatkm <tl' lndio
6. Conlainer Shipping Lines A.ssociation. Mumbai.
7. INSA. Mumbai
8.ICCSA", Mumhai"
9. lnland Irnporters and Consumer Asmeiatian" Delhi.
I 0. l"imbcr Importer Association, Maharr*htra.
l l . Associatitm of Multimrxta l' l'ransport Operators Associatiein o l' lndia Mumbai.Copv to:
Se$etary to the Government of Indiq Minisuy of Shipping, Transport Bhawan, l, parliament
Street New Delhi-l10001 (Attn.: Shri I'. Chhabr4 Deputy Chiel'Conroller ol ihartering).