APMT Mumbai Port Shippers Hit with Surcharges and Delays from Terminal Closure

APMT Mumbai has been closed to all operations since August 4th  due to a labor contract dispute between RTG operators and their unionized workers. “In view of the ongoing situation, we are limited in our ability to service the vessels until further notice. Until such time normalcy is restored, we will not be able to accept fresh export containers in order to ensure that the approach road towards the port does not get congested,” APMT Mumbai said.

The APM Terminals facility –  which accounts for nearly half of Nhava Sheva’s total throughput –  issued a trade advisory last week temporarily suspending all its operations due to a new round of slowdowns by outsourced crane operators, according to the Journal of Commerce. The action is jeopardizing efforts by stakeholders to improve service levels at the port.

Terminal operations are at standstill and even NSICT (DP World Nhava Sheva) and JNPT (the port-owned terminal) approach roads are heavily congested. NSICT and JNPT berths are fully occupied and they are unable to accommodate any GTI Vessels at this stage

In addition to congestion, some ocean carriers have begun levying surcharges on Jawaharlal Nehru Port Trust cargo to compensate for operational cost increases caused by the prolonged shutdown of APM Terminals-operated Gateway Terminals India even though JNPT maintains it is taking all the necessary steps to mitigate supply chain disruptions at India’s largest container gateway. An emergency surcharge of $150 per 20-foot-equivalent unit and $300 per 40-foot-equivalent unit starting Aug. 15 is the current surcharge.

“In order to ease congestion, truck traffic is being diverted to the GTI and NSICT parking area for all undocumented factory-stuffed containers, in addition to the newly developed centralized parking facility in JNPT,” the port said.

In response to the disruption, some shipping lines said that they are working on alternative berthing arrangements for their vessels that have scheduled calls at GTI.

Shipping sources in Nhava Sheva said the contract dispute relating to RTG operations at GTI had been going on for several months.

RCL Agencies will continue to monitor the situation and report further updates once available.