India waives detention fees on containerized scrap

The Indian government has advised shipping lines to not impose any detention fees on inbound and outbound container shipments, quelling supplier fears that the costs would wreak havoc on business and the supply chain.

Shipping lines have been advised to waive any container detention charges at ports or inland container depots between 22 March-14 April that exceed a previously negotiated grace period and not impose any new or additional charges following a 21-day nationwide lockdown to stem the spread of the coronavirus.

"The advisory has been issued in order to maintain proper supply lines at the Indian seaports…This decision is a purely one-time measure to deal with present disruptions caused by the Covid-19 outbreak," India's Ministry of Shipping said in a statement. Covid-19 is the disease caused by the newly discovered coronavirus.

Scrap metal shippers aggressively worked to head off the possibility of a spike in port and inland daily storage fees over this period, with an industry wide campaign to seek government intervention on concerns that the daily charges could push distressed buyers to walk away from material and leave them with substantial financial losses.

The nationwide lockdown, which began 24 March and will extend to 14 April, halted trade amid severe labor shortages at ports and in customs, and has caused the closure of inland container depots, local shipping lines and critical transportation infrastructure. The results of the lockdown have essentially made it impossible for any shippers to meet previously contracted terms with shipping lines.

By Brad MacAulay