News / Bad weather causes chaos at Indian ports, and cargo backlogs build

Waves hit Mundra port last week Credit: port sources

02/09/2024

Container flows out of India’s west coast ports are under severe pressure, as terminals battle cargo bottlenecks from extreme weather on top of lingering capacity pressure linked to a build-up of volumes.

Container lines have reported significant vessel delays at Mundra Port, which bears the brunt of the country’s containerised trade, after torrential rain and flooding swept through the coast last week.

The flagship entity of Adani Ports (APSEZ) operates five container terminals, including a concession held by DP World, known as MICT.

“For at least three days, flooding brought the entire shipping system at Mundra to a standstill,” a senior executive at one of the leading carriers told The Loadstar.

According to the source, the disruption caused major cargo backlogs at the port.

“The Adani terminals are making every effort to clear up the backlogs and bring vessel berthing back on track as swiftly as possible,” the official noted.

However, the source said it could take up to a week, or even longer, for cargo flow improvements, subject to weather events fading.

Given the yard inventory chaos, the port is said to be prioritising export-centric vessel calls, sources said.

More than 50% of Mundra’s volumes moves by rail, or is contributed by inland container depots (ICDs). And a private container train operator told The Loadstar: “Rail service is moving, but there is a backlog of inward trains due to weather disruption.”

“The port has confirmed that it is working hard to clear stranded trains.”

Another trade concern doing the rounds is that vessels from MSC and CMA CGM seem to have berthing advantages, due to their terminal partnerships with Adani at Mundra.

“Other vessels are taking much longer than usual to secure a window due to the current crunch situation,” a Far East carrier source said.

Because of longer waiting times, some vessel-skips or diversions to other ports along the coast have also been reported, which included the Cosco Philippines bypassing Mundra last week.

The issues at Mundra are also causing a ripple effect on supply chains through the region. Truckers and freight station owners at Nhava Sheva Port or JNPA have voiced frustration over escalating cargo gate-in/out delays in recent days, calling on authorities to intervene for a quick fix.

Recent road traffic restrictions imposed in and around the port to streamline vehicle flows exacerbated that concern, as truckers claimed it was now taking up to 20 hours to turn around their vehicles.

“Recently, there have been frequent road closures in the JNPA area, leading to significant disruptions and creating a backlog of shipments,” said the Nhava Sheva Container Operators’ Welfare Association today.

“This situation has put immense pressure on transporters and their drivers to meet customer commitments,” it added.

Other stakeholders have also pushed back against the road restrictions and growing snarls.

“Exports are getting ‘shut out’ and imports are delayed for 12 to 24 hours,” said Umesh Grover, secretary general of the Container Freight Stations Association of India.

“The backlog has clogged our entire facility, causing challenges to those coming to work here to clear the backlog of ships resulting from long port closures in Mundra and congestion in other ports,” said Andy Lane, executive director at PSA Mumbai, last week.

Meanwhile, Nhava Sheva has seen significant volume gains in recent months, hitting a new monthly high in August, after vessel calls jumped. Combined August throughput swelled to 639,336 teu, from 555,270 teu for the same month in 2023, new data shows.