India road transportation suspension to cause delivery delays - DACHSER Intelligent Logistics

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7/20/2018
India road transportation suspension to cause delivery delays

“All India Motor Transport Congress” (AIMTC) has declared an “indefinite chakka jam” effective from today, July 20, 2018 in the morning. The strike is supposed to last until current demands of the association are accepted by the Indian government.
asl-container-ship-sea-freight

The strike will affect, among others, all Indian major ports and lead to the suspension of all cargo and passengers transport operations by truck or bus. We expect not only delays of cargo transport but also a higher risk of damage due to the monsoon season.

Major India ports affected

The strike is, among others, called for at India’s most important ports where approximately 60% of the country's cargo volume are handled. The “Maharashtra Heavy Vehicle & Interstate Container Operator's Association” (MHVICOA) and the national co-ordination committee of six federations of major port workers fully support the suspension of transport operations including the boycott of transportation to and from Jawaharlal Nehru Port Terminal (J.N.P.T) and further terminals at Nhava Sheva port in Mumbai, India’s largest container port.

Ports in the following cities will be affected: Port Blair, Chennai, Cochin, Goa, Gujarat, Mumbai (including Jawaharlal Nehru Port Terminal), Kolkata, Mangalore, Mumbai, Odisha

Click here to read the official strike announcement of the "All India Motor Transport Congress”.

Delays and higher risk of damage

We expect delays and increased risk of damage due to monsoon season:

  • Unpredictable delivery delays as import and export cargo which is in road transit to / from the Container Freight Stations (CFS) is expected to be stuck; import containers will be held up at the port area, export containers in the CFS area
  • Cargo which is stuck in transit is more prone to transport risks caused e. g. by rains
  • e-way bills generated for import / export cargo from and towards the ports might get invalid; claims due to non-closure of e-way bills will raise

The major demand of AIMTC is “Scrapping of Direct Port Delivery (DPD) tendering system and
streamlining of Port Congestion” which went into effect on May 1. The association is also fighting for a modification of the current wage structure.

DACHSER India will stay in close contact with all related parties and keep you updated on the situation and current developments. Should you have any inquiries, please feel free to reach out to us.

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