JNPA Constitutes Task Force to Address Trade Disruptions Arising from Geopolitical Developments in the Middle East

**Executive Summary** The Ministry of Ports, Shipping and Waterways has issued an SOP to mitigate trade disruptions due to geopolitical developments in the Middle East. Jawaharlal Nehru Port Authority (JNPA) has established a task force to coordinate response measures, with Shri Girish Thomas designated as the Single Point of Contact. Consultations are ongoing with stakeholders, and facilitation measures have been implemented to support the EXIM community and ease congestion. **Key Points / Main Content** * **Task Force Establishment:** * Jawaharlal Nehru Port Authority (JNPA) has formed a dedicated task force in compliance with the Ministry of Ports, Shipping and Waterways' (MoPSW) Standard Operating Procedure (SOP). * The task force aims to coordinate response measures and facilitate trade impacted by geopolitical developments in the Middle East. * Members of the task force include Joint DGFT, Additional Commissioner of Customs, Chief General Manager (Traffic) JNPA, and Deputy Director General (DG Shipping). * Shri Girish Thomas, Chief General Manager (Traffic), JNPA, is designated as the Single Point of Contact (SPOC) for all coordination and communication. * **Impact and Consultations:** * Geopolitical disruptions in the Middle East have affected vessel schedules and export cargo movement. * JNPA Chairperson Shri Gaurav Dayal and Deputy Chairperson Shri Ravish Kumar Singh are conducting regular consultations with shipping lines, exporters, terminal operators, Customs authorities, maritime regulators, and trade associations. * These consultations aim to monitor the situation and address operational concerns. * **Facilitation Measures Implemented by JNPA:** * Provision of temporary transshipment storage for Middle East-bound cargo. * Allocation of additional storage areas at terminals as needed. * Facilitation of ad-hoc vessel calls to Middle East ports east of the Strait of Hormuz, including Fujairah, Khor Fakkan, Sohar, Muscat, and Salalah. * Priority handling for perishable cargo and export cargo returning from the Middle East. * Expedited 'Back to Town' (BTT) movement of export containers. * **Customs Facilitation Measures for BTT Movement:** * JNCH has introduced a measure allowing BTT movement of export cargo even without an filed Export General Manifest (EGM). * Containers with intact seals require only basic verification for BTT. * Containers at the Container Yard (CPP) need only e-seal verification for BTT. * Containers at Container Freight Stations (CFS) will undergo limited inspection linked to the shipping bill. * The usual detailed physical examination and BTT-related fees or penalties have been waived. * **Logistical Support and Improvement:** * Adequate trailers are confirmed to be available for reefer and other containers requiring BTT evacuation, ensuring smooth movement, especially for perishable cargo. * Coordinated efforts have led to a reduction in stranded containers at JNPA, from approximately 5,000 TEUs on March 1 to nearly 3,200 TEUs as of March 8. * Stranded perishable containers have decreased from around 2,000 to about 1,000. **Impact Analysis** * **EXIM Community (Exporters and Importers):** * **Impact:** The disruptions have led to affected vessel schedules and export cargo movement. Facilitation measures aim to ease congestion and support their operations. * **Action Required:** No specific actions are detailed for the EXIM community, but they benefit from the implemented measures. * **Shipping Lines:** * **Impact:** Vessel schedules have been affected. Facilitation of ad-hoc vessel calls and priority handling of cargo are designed to mitigate these impacts. * **Action Required:** Engage in consultations and utilize the facilitated vessel call procedures. * **Terminal Operators:** * **Impact:** May experience increased demand for storage and handling. Allocation of additional storage areas and priority handling are relevant. * **Action Required:** Coordinate with JNPA and facilitate priority handling and storage as required. * **Customs Authorities:** * **Impact:** Implementing new facilitation measures for BTT movement, including waiving detailed physical examination and fees. * **Action Required:** Continue to implement the simplified verification processes for BTT movement as outlined. * **Maritime Regulators and Trade Associations (BCBA, APEDA, CSLA, MANSA, FFFAI, Reefer Transporters Association, etc.):** * **Impact:** Involved in ongoing consultations to address operational concerns and monitor the situation. The Reefer Transporters Association has confirmed trailer availability. * **Action Required:** Continue participation in consultations and provide feedback on operational matters.

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