NAVI MUMBAI: Customs at India’s top port is steadily pushing up the share of import cargo cleared via Direct Port Delivery (DPD) services, paving the way for further reductions in dwell times and logistics costs.
Nhava Sheva Customs’ estimates that with quicker clearance, logistics costs per container at Jawaharlal Nehru Port Trust (JNPT) have fallen to roughly Rs. 12,000 (about $190) from about Rs. 50,000 previously.
Most importantly, congestion issues at the Country’s premier public ports are no longer a major shipper concern. The overall average dwell time in fiscal year 2016 to 2017, which ended in March, fell to 2.54 days from 3.06 days in the prior year.
DPD volume totalled 42,157 TEUs in May, out of 129,480 TEUs import shipments in total, bringing DPD shares of total throughput to nearly 33 percent, according to new data collected by JOC.com.
“We are on target to achieve the Government’s goal of 40 percent (in DPD volume) in the current fiscal year,” a customs official said recently.
DPD imports are delivered directly to pre-approved clients within 48 hours of landing at the port, obviating the need for shippers to move those boxes to an off-site container freight station (CFS) for customs clearance, which involves long delays and extra costs.