An inordinate delay on the part of major ports in declaring force majeure is causing resentment among cargo handling agents, Public Private Partnership (PPP) investors and other stakeholders.
“We are not in a position to fulfil our obligations due to the lockdown. Private ports have already declared force majeure,” National Association for Container Freight Stations G. Sambasiva Rao told The Hindu.
Force majeure is a clause that absolves firms from meeting their contractual commitments for reasons beyond their control.
“It is not possible to practice social distancing in cargo handling where manpower is used in large numbers. Hence, we had requested all port managements to permit only mechanical handling of cargo where deployment of labour is minimal,” K.V. Krishna Kumar, president, Federation of Associations of Stevedores, said in a letter to Shipping Secretary Gopal Krishna.
“Declaring force majeure would protect manual labour as they need not work and it would protect all the exporters and importers from unaffordable demurrage charges payable to ship owners,” Mr. Kumar wrote.
Reiterating the demand, A.V. Monish Row, former president of Vizagapatam Chamber of Commerce and Industry, said that while giving essential service status, authorities should consider the fact that they were not in a position to handle cargo due to curbs on movement of vehicles and mobilisation of workers. This necessitated the declaration of force majeure as done by Adani Ports and Special Economic Zone Ltd, Dhamra, Gangavaram, Krishnapanam, Gopalpur and other private ports.
