Government chalks out a four-point strategy to deal with situation arising out of blockage of Suez Canal

Ministry of Commerce and Industry has said that a four-point plan has been chalked out to deal with the situation arising from the blockage of the Suez Canal. This plan was chalked out at a meeting convened by the Logistics Division of the Department of Commerce which was chaired by Pawan Agarwal, Special Secretary (Logistics).

As per the plan, the Federation of Indian Export Organisations, Marine Products Export Development Authority and the Agricultural and Processed Food Products Export Development Authority will jointly identify cargo particularly perishable cargo for priority movement and work with the shipping lines for the same.

The Ministry said Container Shipping Lines Association (CSLA) assured that the freight rates as per existing contracts will be honoured. A request has been made to the shipping lines to maintain stability in freight rates during the period of this crisis.

The Ministry said, once the blockage is over, it is expected that some bunching may take place, especially at the ports of Jawaharlal Nehru Port Trust (JNPT), Mundra and Hazira. Ministry of Ports, Shipping and Waterways also assured to issue an advisory to these ports so as to gear up arrangements and ensure efficient handling during the forthcoming busy period.

Ministry of Commerce and Industry said that the blockage of Suez Canal since March 23, 2021, is seriously hitting global trade.

This route is used for Indian exports and imports worth 200 billion US dollar to and from North America, South America and Europe. During the meeting, it was noted that over 200 vessels are waiting on the North and South sides of the Suez Canal and about 60 vessels are getting added to the queue on a daily basis.