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High Cargo Dwell Time Challenges When Shipping From India to UAE

Cargo dwell time is the measure of the duration from the time a cargo reaches the customs point till the time it is provided clearance by the customs officers. Before the cargo is finally released from the terminal, it needs to be stored and managed. Higher dwelling time means that the goods need to be stored for a longer time at ports. It further leads to other challenges faced by freight forwarder, trader and end customer.

Reports and surveys show that the cargo dwell time in India is much higher than other countries. When shipping from India to UAE, the import time in India can be more than 75 hours. Whereas, the import time in UAE, Singapore and Hong Kong is fewer than six hours. Such difference in dwell time reflects the lack of supply chain management system.

Let us find out the challenges faced by traders, freight forwarders and the nation due to high argo dwell time at ports. Further, we will see what actions are being taken to overcome these challenges.

Consequences of High Cargo Dwell Time

Before we discuss the consequences, let us understand the reasons for the high cargo dwell time in India.

  • Sudden rise in demand for import and export of goods
  • Congestion at port
  • Truck docking delay due to lack of adequate availability of space
  • Lack of access to premise infrastructure
  • Inefficient IT systems and level of automation
  • Low level adoption of technology at ports
  • Lack of efficiency at organizational and managerial levels at ports
  • Non clearance of ports due to various restrictions like traffic rules      

Now let us explore the major consequences of high cargo dwell time when shipping from India to UAE.

  • Higher Shipping Cost: Cargo needs to be handled safely and stored till the time of congestion. As a result, the trader needs to pay the cost of inventory management. This is the major challenge faced by shippers due to the high cargo dwell time in India.
  • Delay in Delivery: The limited ability of cargo terminal operators causes delays in the movement of cargo. This results in daily backlogs and further delays in the shipment of cargo in the queue.
  • Lack of Competitiveness: Poor supply chain management, inadequate resources, and infrastructure cause the Indian ports to lose competitiveness in cargo transport. Maintaining high reputation matters, especially when you are shipping goods internationally.

Supply Chain Solutions to Minimize Cargo Dwell Time

The ports of India are taking all measures and coming up with innovative supply chain solutions to enhance the supply chain management system. They are performing efficiently at all stages to ensure that cargo is discharged fast and the customs clearance process is executed smoothly.

The officers in the field are encouraging more intelligent base checks to reduce inspection time. Moreover, they are working on enhancing the communication chain to operate fast and reduce congestion at ports.

Conclusion
In recent years, the demand for shipping from India to UAE has increased. To meet the demand, better infrastructure, supply chain management system, operations and resources are needed. All these can be handled effectively by the implementation of technology like the implementation of ERP software, productivity tools, supply chain management system, and more.

Above all, the support of the government and authorities of ports plays a significant role in optimizing the cargo dwell time in India. This will make shipping from India to UAE and to other countries smooth and easy.

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