Union Cabinet gave nod to decentralise chartering arrangements to empower PSUs

August 6, 2015

Union Cabinet in order to empower state government and Public Sector Undertakings (PSUs) has approved to decentralise existing chartering arrangements for cargo shipping.
In other words the leasing of cargo ships and its arrangements will be done directly by Centre and State PSUs without any interference by Ministry of Shipping.
This decision to hand over direct chartering to state government departments and PSUs was taken to provide flexibility in taking quick decisions related to their cargo supply and logistic chain operations.
Implications:

  • This step will also add competitiveness between PSUs to deal with other cargo shipping sector players.
  • This step will give flexibility to PSUs to make tailor made solutions for cargo operations.
  • It will promote to increase carrier capacity for cargo transportation due to competition.
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2 Comments

  1. Ravi kiran

    August 7, 2015 at 2:00 pm

    The decision to decentralize shipping arrangements is most likely to create avoidable bunching of tonnage tenders of PSUs and thereby stepping up demand for vessels and consequently push up freight rates to the disadvantage of indigenous end users.

    Shipping Ministry, with its core competence in Shipping, used to spread over a period of time (competing parcels) to avoid jacking up of freight quotations by ship owners. This always helped in keeping a check on freight rates and resulted in huge savings to PSUs. This fact was duly acknowledged by all PSUs – including the OIL PSUs which were given similar freedom about a decade ago.

  2. Ravi kiran

    August 7, 2015 at 2:00 pm

    The decision to decentralize shipping arrangements is most likely to create avoidable bunching of tonnage tenders of PSUs and thereby stepping up demand for vessels and consequently push up freight rates to the disadvantage of indigenous end users.
    Shipping Ministry, with its core competence in Shipping, used to spread over a period of time (competing parcels) to avoid jacking up of freight quotations by ship owners. This always helped in keeping a check on freight rates and resulted in huge savings to PSUs. This fact was duly acknowledged by all PSUs – including the OIL PSUs which were given similar freedom about a decade ago.

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