Railway Board Withdraws Demurrage Hike on FIEO’s Representation

Mr M.Rafeeque Ahmed, President, Federation of Indian Export Organisations (FIEO) thanked Railway Board for a prompt withdrawal of a hike in Demurrage which would penalize users by doubling of demurrage charges between 4 hours to 12 hours and 3.5 times to 4.5 times beyond 24 hours and 48 hours respectively virtually bringing business to a halt.

FIEO Chief said that while the rationale behind the demurrage charges was well taken but since majority of the cargo/commodities which are moved on Indian Railway Rolling stocks are handled manually i.e. by unskilled labours and not by mechanization, availability of the labours during late evening and night hours is a big issue for Indian Railway Goods Sheds as well as at Private Sidings, besides there are seasonal shortages of labour during which rakes need to be handled with less than requisite numbers. Some time container pick up gets delayed due to traffic situation at Nhava Sheva and rake handling gets delayed in want of containers which is normally may be in the range of 10-24 hrs. As siding do not have residential labours, rakes placed during night hours get started only next day morning at 0800-0900 hrs. and on such rakes the delays is 8-12 hrs. This could have had a adverse impact on overhead costs of exporters had the demurrage been implemented.

President, FIEO, requested that Ref.No.1 circular may not be applied for the period 1.06.2014-12.06.2014 as it will be unjustified& penalize the Indian Rail users who have used the rakes during this period and instead the guidelines on the subject prevailing prior to 1st June 2014 to be followed for the period 1.06.2014-12.06.2014 be applicable and Zonal Railways be advised/instructed accordingly.