The Bureau of Civil Aviation Security (BCAS) has given a temporary extension of time to AI Airport Services (AIASL), a ground handling agent, for the conversion of cargo operations at NS-10 export cargo warehouses at the Chennai cargo air complex.
This in turn has helped in the clearance of export air cargo getting cleared of airlines handled by AIASL from Wednesday morning.
Stranded cargo
From January 1, over 100 tonnes of export air cargo were stranded at the airport for want of clearance by BCAS to AIASL, which handles nearly 30 per cent of cargo at the airport; the rest is done by the Airports Authority of India (AAI). Clients utilising the services of Singapore Airlines, Malaysian Airlines, and Air India that were handled by AIASL were unable to move their cargo.
In a letter to AIASL on Tuesday, the BCAS said that the time frame for the process of converting cargo operations of the export cargo warehouse at Chennai to a regulated agent (RA)—an air carrier, agent, freight forwarder, or any other entity that ensures security controls in respect of cargo—is until March 31, 2023. It is pertinent that no further extension shall be accorded.
“Cargo acceptance and despatch operations by AIASL has commenced at the Chennai air cargo complex from Wednesday morning following a temporary extension of three months by BCAS for AIASL to compete their RA Status eligibility,” said J Krishnan, Natesa Iyer Logistics LLP, a leading air cargo agent.
Meanwhile, the Air Cargo Agents Association of India, in a letter to AIASL, said that the sudden closure of the cargo terminal from January 1, 2023, due to the action taken by BCAS on account of AIASL not having RA status, was a big blow to the EXIM trade. It resulted in heavy losses for the trade.
Further, airlines operating from the AIASL terminal could not carry any export cargo. The shipment that missed the flights might face cancellation of orders from their buyers. This could also result in payment of higher freight rates.
The association members have complained that they are being asked to pay demurrage charges for the shipments that missed flights while lying in AIASL-bonded areas. This is also not acceptable at all. The members would certainly not pay the charges until the shipments are uplifted upon resumption of services at the terminal. Rather, they would be diverting all the claims arising out of the lapse on the part of AIASL for settlement at the earliest, the association said.