The private port of Krishnapatnam in Andhra Pradesh’s Nellore, has declared a situation of Force Majeure thereby providing itself immunity from any claims by the users of the port. Krishnapatnam Port Company Ltd (KPCL) is a venture 75% owned by Adani Ports and Special Economic Zone Ltd (APSEZ).
KPCL has said in its communication to all stakeholders that the nationwide 21-day complete lockdown due to the coronavirus pandemic has impacted the operations of the port. This, despite the fact that the port’s functioning is included among the essential services by the government. The trouble appears to be that the port’s staff are unable to reach the port due to strict implementation of the lockdown by the local police authorities.
The message conveyed by the Krishnapatnam Port says, “The port will not be responsible for any claims, damages, charges, etc. whatsoever, arising out of and /or connected to the Force Majeure event (the Coronavirus) , either directly or indirectly, which without any limitation would include vessel demurrages, inter alia due to pre-berthing or any other delays of whatsoever nature and accordingly the discharge rate guaranteed under the agreement shall also not be applicable for all vessels to be handled at the port for any delay or disturbance in the port services during the Force Majeure period”.
Shipping companies enter into agreements with the ports their vessels call on and there are stipulations on emptying the vessels by the port authorities within a day or two days after berthing so that the vessel can carry-on its cruise. While the shipping companies pay the part for using the port, if there are delays in unloading the cargo from the vessels within the timeframes agreed to, then the shipping companies can claim demurrages from the port. The port engages stevedoring contractors to carry out the unloading operations. This involves deploying large cranes to lift the containers from the ships to the jetty and loading the containers meant for export out of the port. If the lockdown has meant that the contractors’ staff cannot reach the port for work, these operations cannot be handled. Hence, this Force Majeure notice.
KPCL has said it will notify when the Force Majeure is lifted and normal operations resumed.