Ships may get to transit ports quicker, cheaper

Upcoming customs duty reforms will aim to help cargo ships turn around faster at ports and streamline the tariff rate structure further, two persons familiar with the development said, making cross-border trade simpler, quicker and cheaper.

- Gireesh Chandra Prasad

The fiscal year 2027 (FY27) Union budget's overall customs strategy will also support businesses diversifying their export markets to limit the impact of global trade uncertainties, they said.

Hectic pre-budget discussions are under way on simplifying customs procedures, increasing last-mile connectivity to ports, and automating more processes so that consignments can leave ports faster, one of the two persons cited above said on the condition of anonymity.

Currently, the average turnaround time at an Indian port is 48 hours, against less than a day at top trading hubs like Hong Kong. The idea in the Indian government is to narrow this gap as much as possible, the person cited above said. Ships idling at ports raises costs for shipping lines, delaying shipments and raising transport costs.