ports on the west coast of India.In particular, the container transportation hub of Porto de Mundra, is facing unprecedented operational pressures. This challenge stems not only from capacity constraints due to continued growth in cargo volumes, but is also overlaid with severe disruptions to port operations caused by extreme weather events.
The port of Mundra, a key node for the country's containerized trade, was hit hard last week as heavy rains and flooding battered India's coastal areas. Shipping companies reported thatVessels at the port suffered severe delays and the entire shipping system was paralyzed for at least three days due to flooding, resulting in a huge backlog of cargo.
Adani Ports (APSEZ) , the flagship entity that operates five container terminals including the Mundra International Container Terminal (MICT) under the Dubai Ports Worldwide (DP World) concession, is going all out to clear the backlog of cargoes and work towards restoring normal berthing of ships.However, it is expected that it may take a week or more for cargo flows to resume due to the continued impact of the weather.In response to the current predicament, the port of Mundra is said to be prioritizing calls for export-oriented vessels to alleviate some of the pressure. Meanwhile, with more than half of the port's cargo relying on rail transportation or inland container depot (ICD) transshipment, the normal operation of rail services has also been affected, with a backlog of inbound trains, but the port has confirmed that it is working to clear stranded trains.
In addition, Mediterranean Shipping and Duffy Shipping vessels appear to have the advantage of preferential berthing due to the partnership with Adani's terminal in Mundra.Other shipping lines have had to face longer wait times, and some vessels have even opted to port-hop or divert to other coastal ports, including the COSCO Philippine, which bypassed Mundra last week.
The problems at the Mundra port have also triggered a chain reaction in the regional supply chain.Truckers and cargo terminal owners at the Nhava Sheva Port (JNPA) have expressed frustration at the escalating delays in the movement of goods in and out of the port in recent days and have called on the authorities to intervene and resolve the problem as soon as possible.The recent implementation of road traffic restrictions aimed at streamlining the movement of vehicles has unexpectedly exacerbated traffic congestion in the JNPA area.Truckers report that it can take up to 20 hours to turn their vehicles around.Stakeholders such as the Container Freight Stations Association of India (CFSA) have also expressed concern over the frequent closure of roads in the JNPA area, leading to severe disruptions and backlogs of cargo, pointing out that exports are being blocked and imports delayed, which puts immense pressure on the transport companies and drivers to fulfill their promises to their customers.
It is worth noting that despite the many challenges, cargo volumes at the Port of Nhava Sheva have continued to grow, with August setting a new monthly throughput high of 639,336 TEUs, a significant increase over the same period in 2023.