CMA CGM to resume Suez transits on India-US east coast service
CMA CGM is reportedly preparing to resume Suez Canal transits with a key service linking ...
CAT: RISING TRADEEXPD: TRUMP TRADE LOSER LINE: PUNISHEDMAERSK: RELIEF XPO: TRUMP TRADE WINNERCHRW: NO JOYUPS: STEADY YIELDXPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS LINE: DEMAND PATTERNS LINE: LANDSCAPELINE: CONF CALL STARTSDSV: UNTOUCHABLEEXPD: NOT AS BULLISH AS PREVIOUSLYFWRD: SPECULATIVE RALLY
CAT: RISING TRADEEXPD: TRUMP TRADE LOSER LINE: PUNISHEDMAERSK: RELIEF XPO: TRUMP TRADE WINNERCHRW: NO JOYUPS: STEADY YIELDXPO: BUILDING BLOCKSHLAG: BIG ORDERLINE: REACTIONLINE: EXPENSES AND OPERATING LEVERAGELINE: PIPELINE OF DEALS LINE: DEMAND PATTERNS LINE: LANDSCAPELINE: CONF CALL STARTSDSV: UNTOUCHABLEEXPD: NOT AS BULLISH AS PREVIOUSLYFWRD: SPECULATIVE RALLY
Terminal capacity pressure building in Sri Lanka’s Colombo port, linked to the Red Sea-linked transhipment boost, seems to be spilling over to other ports in the subcontinent region.
According to local industry sources, Adani Ennore Container Terminal (AECTPL), near Chennai, has seen a flurry of ad-hoc MSC vessel calls with transhipment cargo, rerouted from Colombo due to the space crunch there.
MSC has an interest in AECTPL, following the purchase of a 49% stake from Adani Group at the end of last year, extending their long-running strategic partnership at Mundra Port.
Sources in Chennai complained that the unscheduled vessel buildup had made terminal operations at Ennore chaotic, creating a domino effect throughout the southern India supply chain ecosystem.
“Indian shippers are paying the price [for disruption elsewhere],” a port official in Chennai told The Loadstar.
“All that’s going on will continue to mess up the port flow, with regular service callers missing windows and skipping the port at times, in anticipation of berthing delays,” the source said.
Additionally, the Ennore harbour has been hit by power outages in recent days, sources said. Following which, CMA CGM Agencies India this week told customers the APL Boston, which had an ETA of 9 May at Ennore, would be delayed due to the power problem.
APL Boston is one of 17 vessels deployed on the New North Europe Med Oceania service operated by CMA CGM and MSC, which began providing a weekly call at Ennore last year.
“There will be delays in the berthing of vessels over the next couple of days until normalcy is restored,” the French liner cautioned. “Despite the challenges posed by the power outage, we want to assure you [customers] that Ennore Port Terminal is managing its operations,” it added.
PSA Chennai Terminal, also known as CITPL, is also facing productivity slowdowns, adding to the trade woes. As a result, terminals in the region have had to contend with vessel bunching, gate congestion and long truck queues outside the harbour city, according to shipping executives.
“MSC will obviously bring in some mainline or feeder vessels to pick up the rerouted cargo for transhipment,” one executive told The Loadstar.
Combined with terminal operations at Kattupalli Port, Adani Ports is rapidly chipping away at Chennai’s market share – it was once the main gateway on India’s east coast.
Thanks to new services and growing ad-hoc calls, Ennore saw container volumes for fiscal year 2023-24 swell 22% year on year, to some 671,000 teu, according to port data.
Comment on this article
Paul Kata
May 11, 2024 at 7:03 amCongestion is the order of the day till the Red Sea security situation is solved.