Re-introduction of Penal Berth Hire levy

10 Oct 2024 / Vishnakhapatnam, India

It is observed that most vessels are encountering the delays during day-to-day cargo handling operation of bulk/break bulk cargoes…

…Several instructions were given to port users to take necessary action to avoid unnecessary delays… …In spite of all the efforts made, some port users are not making any efforts to curtail the delays and thus leading to poor performance of the vessels at berth.

Earlier, norms were fixed for every cargo, either import or export. If the vessel did not achieve the norm during their stay at berth, Penal Berth Hire Charges were collected along with the final bill…

…Subsequently, Penal Berth Hire was done with and, at present, Penal Berth Hire charges are being levied only for oil tankers. Now, the performance of some bulk vessels has deteriorated and this is directly affecting the performance indicators. In this regard, several instructions were given to the port users time and again, but in vain.

In view of the above, Vishnakhapatnam Port Authority (VPA) intends to re-introduce Penal berth Hire Charges (PBHC) for all vessels at VPA Berths.

Criteria for delays for levy shall be the following:

  • When the vessels do not commence cargo handling operations within two hours from the time of berthing, Penal Berth Hire Charges equivalent of two times of normal berth hire shall be levied in addition to the normal berth hire charges until the cargo handling operations commence, on the Steamer Agent.
  • When the vessel does not give readiness to sail/shift even after two hours of completion of cargo handling operations, Penal Berth Hire Charges equivalent of two times of normal berth hire shall be levied in addition to the normal berth hire charges until the vessel hoists shifting/sailing flag and contacts Port Control, on the Steamer Agent.
  • Whenever the cargo handling operations are halted for more than one hour due to any one or several reasons, Penal Berth Hire Charges equivalent of two times of normal berth hire shall be levied in addition to the normal berth hire charges until the cargo handling operations recommence, on the Stevedores.

The above Penal Berth Hire Charges come into force with immediate effect.

(For information about operations in India, contact GAC India at [email protected])

Source: Extracts from Vishnakhapatnam Port Authority Circular No.1740 dated 8 October 2024

If quoting any content from Hot Port News, please cite GAC Hot Port News as the source.

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