MANSA opposes MbPT's Revision of Ship Agents' Bank Guarantee

Mumbai and Nhava Sheva Ship Agents Association (MANSA) has requested the Mumbai Port Trust to re-consider the proposed bank guarantee amount levied on vessels calling at the port.
 
In a letter addressed to the Mumbai Port Trust, MANSA said, “The time given for introducing this change may be extended till January 2017 end in view of the prevailing state of the banking to cope with work of demonetization and after effect. We request you to consider requirement of bank guarantee to a maximum of Rs 2-5 lakh for foreign going vessels and Rs 1-2 lakh for coastal vessels.”
 
Earlier, Mumbai Port Trust in its circular dated December 14, 2016 had proposed to revise bank guarantee to be submitted by vessel agents at Rs 15 lakhs for foreign going vessels, Rs 5 lakhs for coastal vessels and Rs 2 lakh for container vessels, effective December 31 with a validity period of three years.
 
As per the circular, the present bank guarantee prevailed at the port was Rs 2 lakh and Rs 50,000 for foreign going and coastal vessels respectively since 1992.
 
Drawing the port’s attention to the charges levied at the other ports, the MANSA letter states, “We do agree that the present bank guarantee amount needs to be revised, but not to the extent mentioned in the circular.”

As per the prevailing practice, ship agents immediately pay the final invoice immediately within a 10 day beyond which interest is levied. A large part of the final invoice is already paid online prior to the berthing of the vessel.
 
Hence, it would be a great burden on the agents to execute high value bonds by which the port is in no way benefitted and only results in blocking of large amounts and lack of liquidity in working capital for agents, the MANSA letter said.