NEW DELHI : The Ministry of Railways has decided to scrap the 5% discount in haulage charge per twenty-foot equivalent unit or TEU for movement of loaded containers from May 1, according to a circular issued.
Further, the Railway Ministry has decided to cut the discount for movement of empty containers and empty flat wagons to 15% from 25% in haulage charge per TEU from the same day. The revised haulage charges will be valid till July 31, it stated.
A TEU is the standard size of a container and a common measure of capacity in the container business.
The 25% discount on the prevailing haulage charge per TEU for movement of empty containers and empty flat wagons, and the 5% discount on extant haulage charge per TEU for movement of loaded containers are valid till April 30.
The withdrawal of the discount in haulage charges given to loaded container movements and the reduction in discount on haulage charges for empty container and flat wagon movements are expected to raise the cost of moving boxes by rail as container train operators are expected to pass on the revision to the users, an executive with a container train operating company said.
Since 2018, the Indian Railways is offering a 25 per cent discount on the prevailing haulage rate per TEU for the movement of empty containers and empty flat wagons to boost movement of more containers by rail as compared to road.
After the outbreak of coronavirus, the railways even waived the haulage charges for moving empty containers and empty flat wagons for more than a year to ease the acute shortage of containers that had roiled exporters and raised freight rates from India.