On imported air cargo, 50% of demurrage charges are waived.

The waiver applies to the use of cargo terminal storage facilities for the long-term storage of imported cargo, products, unattended luggage, stores, delivery bags, urgent packages, and postal mail.

Because importers are having trouble passing cargo from airports throughout the country owing to the lockout, the Ministry of Civil Aviation (MoCA) has canceled half of the demurrage fees owed to the airport cargo port administrator until the closure is lifted.

Trade partners, on the other hand, are dissatisfied, and demand a complete waiver, as declared by the Shipping Ministry, for imports via terminals.

According to an order issued by Dinesh Kumar, Deputy Director (ER), MoCA, half of the demurrage costs would be canceled if the products are processed and withdrawn from the airport by 23:59 hours on April 16.

The waiver of demurrage charges is for storing import cargo, commodities, unattended luggage, stores, delivery bags, urgent packages, and postal mail at cargo terminals for a longer duration further than free storage time for approval or evacuation from the airport.

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Logjam at airports

Imported air cargo that arrived on or after March 20 was unable to be approved from airports, causing delays at cargo terminals. The lockout made it difficult to remove imported goods, such as relief supplies needed to handle Covid-19.

According to the ruling, airport and cargo terminal operators must increase their assistance to the air cargo business in order to eliminate the backlog.

"It would also be suitable if the Ministry of Civil Aviation extended the waiver to all imports for 100% of the demurrage with no limitations," said G Raghu Sankar, Executive Director of International Clearing & Shipping Agency (India) Pvt Ltd, which specializes in marine and air cargo clearance.

In a March 31 advisory, the Shipping Ministry stated that ports/terminals should waive all penalty charges until April 14 without placing restrictions and that it must be extended to transporters and custodians such as container freight facilities and inland container depots. Indeed, the transporters and custodians – Shipping Lines and CFS – have extended the free time indefinitely till April 14th. He went on to say that it must be the same for aviation freight as well.

Cargo by sea

According to Paramount Shipping's AV Vijayakumar, air cargo will obey the Shipping Ministry's directives, that direct the major ports and other Exim cargo stakeholders not to apply any fines, charges, or taxes on every port user for any problem caused by Covid-19 until April 14. It issued guidance to all main port trusts on March 24 regarding the employment of the Force Majeure clause in port functions and processes.

Large ports were also given the option of deferring the conclusion of every project they were working on, whether in PPP mode or not. Furthermore, for current and operational PPP Projects, major ports can grant waivers of all penalties and deferment of performing duties as per concession contract on a case-by-case scenario, according to the Shipping Ministry.