Dubai: Following the move of DP World, Gulftainer Company Limited is set to tighten its rules over incoming full containers and increase demurrage rates at Sharjah's terminals by as much as 275 per cent, starting next month, sources told Gulf News last week.
The new rates, intended to prevent congestion and discourage use of the ports as long-term storage facilities, will cover imports of full containers at Port Khalid, Khor Fakkan and Sharjah Inland Container Depot.
While it now appears that most major ports in the UAE are resorting to higher demurrage rates to drive away long-term idle cargoes, ports in Fujairah will keep their storage rates to a minimum.
Some cargoes reportedly spilled over in Sharjah recently, threatening to clog the emirate's ports, even as Dubai's terminals at Jebel Ali were congested, following the closure of Port Rashid months ago.
However, shipping companies interviewed by Gulf News said traffic at the Dubai and Sharjah terminals has eased since DP World increased its storage rates.
Effective December 1, the free period at Sharjah's ports will be reduced from 10 days to 7. Daily rates for storage between the 8th and 12th days will increase 275 per cent from Dh20 to Dh75 for every 20-foot container, and from Dh40 to Dh150 per 40-foot container.
The same rates will be charged from the 13th to 17th days, but it will apply from the first day, as the free use of port facilities will be forfeited. The daily rates will go up further to Dh130 per 20-foot container and Dh260 per 40-foot container from the 18th day onwards.
Smooth traffic
Gulftainer clarified that cargo traffic at their terminals has always been smooth, adding that the new tariff structure, which has not yet been finalised, is intended to prevent future congestion.
"The Sharjah terminals are not currently congested. These new storage terms are rather intended to prevent [future] congestion from occurring, particularly in the light of the new rates being implemented in Dubai," Gulftainer commercial manager Keith Nuttal told Gulf News.
"Congestion at the Dubai ports stemmed from the fact that many people wanted to use the facilities as long-term storage facilities and the new storage terms are intended to prevent this happening at the Sharjah terminals," Nuttal added.
In Fujairah port general manager Mousa Murad said they noticed a sizeable increase in cargo business in recent weeks, but their policy has always been to keep fees low.
"And that will not change. Our container terminals are very busy, but given the current limited storing capacity, it's fair to say we do better with deliveries which could be transferred immediately. From early next year we will have more container terminals to handle increasing demand," Murad told Gulf News.
Shaji Lakshman, assistant operations manager of Seatrade Shipping, said some ships spilled over to Khor Fakkan from Jebel Ali when Dubai's ports were congested. However, traffic has eased since DP World decongested Jebel Ali's ports.
"We had problems when Jebel Ali was clogged. Now we only have congestion on certain days," Lakshman told Gulf News.
With additional inputs from Fuad Ali, Staff Reporter.
