Delays are being experienced at Chennai port as it struggles to handle the volume container traffic.
Chennai Port (the main port for customers shipping to Madras) is struggling to cope with the congestion. The increase in container volume at Chennai Port has often led to congestion.
In the last 10 years, the container volumes have grown substancially, but the number of gates has decreased. Only two gates are operational out of 10 to evacuate the containers. The approach road to the main gate is also in bad shape and has not seen the repairs that are much needed.
As a result, all import and export shipment are affected due the difficulties incurred in evacuating containers or exporting them on time. The current situation may lead to delays in clearance and delivery of the shipments that are arriving at Chennai Port and may incur detention, demurrage and various other charges. The port authorities are asking to pay congestion surcharges from the importers.
The situation is so bad that the port authorities are forced to look at other ports to fulfil the obligation. Some of the shipping lines have themselves started looking at other ports to avoid their vessels being delayed.
According to sources this situation will remain the same for at least the coming 2-3 weeks.
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