WASHINGTON, SEPT 29: THE world shipping Council (WSC) which represents most container tonnage afloat, has warned that the shipping Bill of 2010 if enacted by the US House, will create an ocean transportation system that will make US trades less efficient and costlier for carriers. It will result in less choice, less capacity, lower service quality and higher costs for US exporters and importers.

the Bill was reportedly introduced by Congressman, Mr James Oberstar, chairman of the congressional Transport and Infrastructure committee.

“we do not recommend this. Greater rate instability is unlikely to be in the interests of shippers or in the interests of carriers that must continue to make billions of dollars of investment in the capacity needed to serve American commerce efficiently WSC said.

The Bill will result in excessive government regulation, proposing”various forms of rate regulation, mandatory revenue transfers, intrusion into how parties agree to structure their commercial offerings and agreements and burdensome and ill-defined reporting requirements”, WSC pointed out.

“The proposed legislation will not and cannot prevent difficulties if such extreme economic conditions recur in the future. Capacity shortages in late 2009 and early 2010 were brief, market driven and unforeseen by shippers and carriers,” WSC pointed out.

WSC argued tha the “existing regulatory structure did not cause these transitory problems, but provided a predictable base from which carriers could efficiently and quickly respond to improved market conditions,” it argued.

Mr Oberstar based his Bill on complaints from importers and exporters about obtaining enough vessel space and sharp rate increses.

“Eliminating the antitrust immunity for these conference agreements will increase competition will in crease competition by requiring ocean carriers to compete in the marketplace with the best price and service to get shippers’ business. That will benefit industry as a whole,” according to the Congressman.

In october 2007, the EU eliminated the anti-trust immunity for ocean carriers. “I am not aware of any ocean carriers being put out of business because of the loss of that exemption.” he argued.

WSC feels that the wording of the Bill “will effectively destroy the current system of operating agreements serving American maritime foreign commerce.

“It will be both procedurally and substantively far more restrictive than the application of anti-trust law, and will be wholly out of alignment with every other nation’s treatment of such agreements.

“Impairing carrier operating agreements is not an agenda that has been advocated by shippers, nor is it supported by any findings or recommendations from the FMC.”

The Bill covers surcharges, insisting that they henceforth “accurately reflect increases in the carrier costs”. It will impose mediation and arbitration in shipper carrier disputes “so that the freight can keep moving.

It will prohibit carriers from discriminating against a shipper providing his own container or other equipment and will deal with the bumping or rolling containers.

The FMC will develop remedies and penalties for carriers that engage in deceptive practices.

NEW DELHI, SEPT 29: THE surging global prices of wheat, following the export ban by Russia, Uzbekistan and Kazakhstan, has compelled the Union government to stop signing the contracts for wheat improts.

International prices of the grain are currently hovering around $370 per tonne-far above the domestic prices which is just $250 a tonne.

Besides, the country has 49 per cent more wheat stock than the buffer stock norm. The government has 29.9 million tonnes against a buffer stock norm of 20.1 million tonnes.

However, millers have already contracted to import around 200,000 tonnes, 27 per cent more than 2009-10, in the first half of the current financial year, Nevertheless, the shipments are unlikely to take place soon since the commodity is too dear. observed an official of the Roller Flour Miller’ Federation of India.

Imports touched 158,000 tonnes in 2009-10.

‘We have imported 200,000 tonnes this fiscal so far at $ 280-285 a tonne,” the Federation President, Mr R. K. Garg, said At present, there is no improt duty on the grain.

Flour millers import the high protein variety, Primarily from Australia.

NEW DELHI, SEPT 29: EXPORTS of cotton will now be allowed from November 1and not October 1 as decided earlier.

A meeting of a Group of Ministers (GoM) decided to permit export of up to 55 lakh bales from November 1. The registration of export contracts will begin from October 1, the Textile Secretary, Ms Rita Menon, announced here.

The GoM’s decision is a compromise between the conflicting interests of the fibre growers and the textile industry.

The Textile Ministry, on behalf of mills, wanted the start of exports delayed till January. It had also proposed an export duty of Rs 2,500 a tonne alongside the 55-lakh bale cap on total shipments.

The GoM decided that this quantity would not be subject to any duty. At the same time, the situation would be reviewed on October 15, by which time a clear picture of the Size of the crop may emerge.

The long monsoon months have resulted in harvesting delays and the crop’s arrivals into the market.

NEW DELHI, SEPT 29: WITH food relentless maintaining its relentless climb and touching 15.46 per cent for the week ended September 11, the Union government has decided to continue with the duty free imports of rice and the ban on export of non Basmati rice for now.

An Empowered Group of Ministers (EGoM) also decided to extend the open market sale scheme (OMSS) for both wheat and rice by Six months up to March 2011, the commerce Minister Mr Anand Sharma said.

Under OMSS, the government releases stocks in the open market to both bulk and retail consumers at a concessional price.

The government had removed the import duty of 70 per cent on rice in October 2009 to augment supplies. The import duty exemption was to expire on September 30.

BANGALORE, SEPT 29; COFFEE season for 2009-10, which ends in September, saw exports rising by 53 per cent to 2.65 lakh tonnes in the current coffee year from 1.74 lakh tonnes in the 2008-09 season, coffee Board figure showed.

“Exports are expected to cross 2.70 lakh tonnes by Septmber 30 as applications of 10-12 large exporters applied for permits would be disposed off by this month,” a coffee Board official said.

The exports yielded $ 569 million till September 17, 2010 against $396 million in the same period of 2009, an increase of a whopping 44 per cent . In rupee terms, the amount touched Rs 2,715 crore, as against Rs 906 crore in 2009.

NEW DELHI, SEPT 29: THE International Air Transport Association (IATA) has called on India to come up with a more corrdinated up-to-date, internationally minded approach to a range of aviation issues.

International flight frequencies to India have tripled to nearly 2,300 per week, India is more connected than ever to the globalised world, bringing enormous economic benefits, the IATA Director General, Mr Giovanni Bisignani, observed.

“But there is still much more to be done,” he told a meeting of the confederation of Indian Industry (CII) here.

According to him, the protectionist foreign investment policy is one handicap, “with the old world approach to foreign direct investment (FDI) in aviation by the Ministry of Commerce, the country allows 100 per cent FDI in transit systems, ports, harbours, hotels, ocean transport and road systems. But airline FDI is restricted to 49 per cent, No foreign airline, can invest in an Indian airline, The inconsistency is difficult to understand,” he emphasised.

Mr Bisignani asked if it made sense that a non -Indian airline can own 100 per cent of a greenfield airport, but cannot invest a single rupee in an Indian airline!

“The success of india’s airlines should not be compromised by an archaic investment policy that isolates them from global trends, ‘ he stressed, noting recent trends of consolidation, multi-hub and multi brand strategies.

He also found fault with the security system,.”India chose to ignore [international] standards and invented its own unique requirements and processes, Moreover, local Customs offices in Bangalore and Mumbai have added local complications Each deviation from the global standard adds costs but does not improve security,” he pointed out.

He saw tremendous potential for aviation in the country which currently enjoyed a market of 42 million annual passengers domestically and a further 34 million internationally.

“If Indians, flew as much as Americans, it would be a market of over four billion passengers, with the spending power of Indians set to triple in two years, the potential for growth is incredible,” he outlined.

On infrastructure, he said, ” I have concerns over Mumbai by 2016, stop-gap measures may take capacity up to 40 million. But where is Mumbai’s 100-million passenger plan? We must find a solution that is environmentally responsible. The clock is ticking.”

CHENNAI, SEPT 29; Garlic price has shot up like anytime since last few months. Garlic, which had hardly cost Rs 15 a kg until February 2009 at retail outlets, has now skyrocket over dozen times, thanks to rising export demand and a ban on chinese garlic.

Garlic that was quoted at Rs 550 a quintal at the Agra terminal market in March 2009 is now quoted at Rs 7,000 Earlier this year, the prices dropped from a high of Rs 5,400 in February to Rs 2,500 in May on higher arrivals. Since then, garlic has moved only one way up.

“Imports from china have stopped after the Government imposed a ban two years ago due to a disease in the Chinese garlic,” said Mr R.P. Gupta, Director of the National Horticultural Research and Development Foundation . “This year, domestic production is good,” he said.

According to the Spices Board exports in April -August have increased by 327 pc to 13,250 tonnes valued at Rs 498 crore from 3,100 tonnes valued at Rs 63.22 crore in the same period last year.

Trade sourcee said China has turned a net importer this year as its garlic crop has been affected by hot weather first and floods thereafter. No details are available on Indian production for this year, though estimates put it around 10 lakh tonnes.

NEW DELHI, SEPT 29; EXPORT of cotton will now be allowed from November 1 and not October 1 from which date the current ban was to go. A Group of Ministers (GoM), decided to permit export of up to 55 lakh bales from November 1. The registration of  export contracts will begin from October 1, the Textile secretary, Ms Rita Menon, said. The GoM decision strikes a compromise between the conflicting interests of cotton growers and the textile industry.

The Textile Ministry, batting on behalf of mills, had apparently wanted opening of exports delayed till january.

Further, it had proposed an export duty of Rs 2,500 a tonne alongside the 55-lakh bales cap on total shipments, The GoM, on its part, decided that the 55-lakh bale exports would not be subject to any duty.

At the same time, the situation would be reviewed again on October 15, by which time a clear picture on the size of the crop will emerge Prolonged rains have resulted in delay in harvesting operations and arrival of the crop into the market.

MUMBAI SEPT 28; THE sharp reduction in the rates of duty drawback announced recently by the government has shocked exporters of man-made fibre textiles, Mr Ganesh Kumer Gupta, Chairman of the Synthetic and Rayon Textiles Export Promotion Council (SRTEPC), said.

Adderssing the 56th annual general meeting (AGM) of the council here on september 27, he urged the government to revise the rates upward to arrest the decline in exports during the current financial year.

Exporters were, on the contrary, anticipating an increase in the rates following the hike in excise duty from 8 per cent to 10 per cent and the imposition of 5 per cent customs duty on crude oil.

He also pointed out that the exports of man-made textiles had fallen by around 8 per cent during April -July 2010 and yielded only Rs5,071 crore.

Exprots of these items had touched an all-time high of Rs 16,861 crore during 2009-10, registering a growth of around 7 per cent over 2008-09, despite adverse global economic conditions.

Mr Gupta saw immense global potential for the sector and the Council aimed to capture over 4 per cent ($6.2billion) of the market by 2015, he projected the trade to touch around $155 billion by 2015.

SRTEPC had organised promotional activites and exhibitions in vietnam, saudi Arabia, the Czech Republic, Poland, Morocco, Tunisia Argentina, Brazil, etc.

For 2010-11, the council would hold exhibitions in the UAE, Egypt, Kenya, Tanzania, Syria, Jordan, Australia, Fiji, peru, vietnam, Brazil, Argentina, etc.

These promotional events, he believed, would help in achieving the 2010-11 fiscal target of $3.5 billion.

Extending the DEPB scheme to june 30, 2011, by the government was a positive step, he conceded.

He also welcomed the green signal given to the duty-free  import of specified trimmings, embellishments at the rate of 3 per cent on exports of polyester madeups and hoped it would be extended to all types of synthetic made-ups.

He, nevertheless, expressed concern over the delay in getting the refund of service tax on export related service.

The council had been seeking a suitable mechanism to grant exemption to export related services on which service tax was levied, instead of paying the tax first and then applying for a refund, he revealed.

The delay in getting the drawback amount from the Customs, due to non-availability of test reports, was another area for concern, he observed.

With regard to the anti dumping duty imposed by Turkey on “spun yarns made out of man-made fibre” and on the import of viscose spun yarn initiated by Brazil, the Council was evaluating the possibility of filing a mid term review, he disclosed.

Exporters were preparing the ground to oppose the anti-dumping duty imposed by peru on fabrics made of polyester staple fiber and viscose fibre, he assured.

NEW DELHI, SEPT 27: US SHIPPERS lobby, the National Industrial Transportation League (NIT), has come to support a petition from the new transpacific chinese carrier, the Hainan PO Shipping co Ltd, that it be exempt it from restrictions in the US Controlled Carrier Act. As the new player on the transpacific, Hainan’s first ship called Chinese ports recently and arrived in Long Beach on September 1.

Addressing the Federal Maritime Commission, the NIT sough to exempt the Chinese state-owned ennotice. NIT League noted that the act required “controlled carriers” to be subject to a 30-day waiting perod so the FMC  could assess possible predatory pricing to eliminate rival carriers.

But the shippers lobby argued that it supports the Hainan petition because the reduction of rates on less than 30 days notice could only benefit American Importers and exporters by enhancing competition among ocean carriers on the transpacific. The FMC, It argued, would still have the authority to investigate Hainan as a controlled as a controlled carrier if its rates were found not to be just and reasonable.