Trailer operators strike looms in Cochin Port even as competition soars

Container trailer operations in Cochin Port will likely be hit if a section of trailer operators go ahead with the planned indefinite strike — the first in six years — from February 4.

The All-India Container Carrier Owners Association has given a strike call demanding a rate revision for services, pointing out that the current rates were fixed 10 years ago when diesel prices were hovering at ₹40-45 per litre.

The last major workers’ unrest in Cochin Port was in 2016 when trailer crew struck work for about four days demanding a wage hike. Since then, a cordial atmosphere has prevailed.

Rise in fuel prices

PA Najeeb, Joint Secretary of the Association, said that fuel prices have touched ₹100 a litre, making it difficult for trailer operators. The Association has urged the government to implement the rates fixed by the National Transportation Planning and Research Centre (NATPAC) in 2018 for uninterrupted trailer services, but, Najeeb alleged, the government has not taken any steps to implement it even as fuel prices went up manifold.

Meanwhile, the Cochin Container Carrier Owners Welfare Association (CCCOWA), the body that has decided trailer rentals in the port for decades, is of the view that any hike in rates should only be implemented after consulting all stakeholders, including the Chambers of Commerce and Industry, custom house agents, steamer agents etc.

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Tomy Thomas, Secretary, CCCOWA, said the State government had approved the rates fixed by the Association through a circular till the rates fixed by the NATPAC came into effect. The need of the hour is to introduce a pre-paid system for rates and provide a level playing field for all the parties, having clear rules and regulations with the support of the government.

Drop in demand

The trailer business has been hurt by the slump in business at Cochin Port as the number of shipping services — both coastal and overseas — declined. At the same time, the number of trailers plying in the port area has gone up, resulting in a situation where many lost business. Coupled with this is the increase in shipping rates in Covid times across sectors.

All these factors have hit the shipping industry and any hike in trailer rentals will be considered only after taking the sector into confidence, Thomas added.

However, a veteran in the trailer industry cited unhealthy competition among trailer operators caused by under-quoting of rates, abetted by freight forwarders and companies, as the reason for the decline in business opportunities. In addition to this, intense competition has forced many individual trailer owners, who are also drivers, to take trips at reduced rates.

According to Prakash Iyer, Chairman, Cochin Port Users Forum, NATPAC had submitted its report after considering the cost structure for operating container carriers and trucks such as oil price, road tax, depreciation etc. The report is only a guideline and owners can charge their customers based on costs.