Exporters seek waiver of demurrage charges on cargo due to conflict

Apparel exporters on Monday urged the government to waive demurrage charges on export cargo at airports, as flight disruptions arising from ongoing West Asian crisis may impact movement of consignments.

In a communication to the civil aviation ministry, Apparel Export Promotion Council (AEPC) said the prevailing situation has significantly disrupted international flight operations, resulting in route restrictions, airspace closures, flight diversions, schedule irregularities, and operational constraints at certain overseas airports.

Airport demurrage charges are fees on cargo or baggage at an airport terminal being kept beyond the allowed free period.These charges encourage swift clearance. It varies by airport, cargo type and duration.These unforeseen developments have directly impacted the timely movement of export cargo from Indian airports to various international destinations,AEPC Chairman A Sakthivel said.

As a consequence, he said export consignments are currently stranded at multiple airport cargo terminals across India.The delays are solely attributable to external and unforeseen factors beyond the control of exporters, customs brokers, freight forwarders, or air cargo agents.Sakthivel has “requested for the waiver of demurrage charges on export cargo due to flight disruptions arising from ongoing West Asian crisis”.

Under the existing tariff structure of Cargo Terminal Operators (CTOs), demurrage charges become applicable when cargo remains in terminal facilities beyond the stipulated free period, he said.

“However, the present circumstances constitute an exceptional and unavoidable disruption in the global air logistics chain,” he said.

Imposition of demurrage in such cases would place an undue financial burden on exporters who are already facing shipment delays, contractual uncertainties, and market-related challenges, he noted.

Sakthivel requested DGCA (Directorate General of Civil Aviation) to consider issuing suitable instruction to Cargo Terminal Operators to grant waiver of demurrage charges on export consignments that could not be lifted due to flight disruptions, airspace restrictions, or related operational constraints arising from the ongoing international developments. Such an intervention would provide much-needed relief to the exporting community and help sustain confidence and continuity in India’s air cargo trade during this challenging phase, he added.