1 day ago
Mundra Port disruption deepens supply-chain strain amid West Asia crisis
Mundra Port is facing a problem with the yards that store empty shipping containers.
The port operator, Adani Ports and Special Economic Zone, wants shipping companies to use only certain yards inside the port area.
The outside yard operators say this change could make their businesses unviable, so they have started a strike.
Transporters also plan to stop picking up containers.
This could delay both goods coming into India and goods being sent out.
The yards inside the special economic zone may be able to handle only about 20% of the need, according to an industry representative.
The disruption comes while the West Asia conflict is already making shipping slower and more expensive.
Exporters such as ceramic producers could face further losses if the strike continues.
A strike by empty-container yard operators at Mundra Port could hold up nearly 5,000 containers daily.
Adani Ports and Special Economic Zone will freeze external empty-yard codes from September 1.
Shipping lines will instead have to use designated empty-container depots within the Mundra SEZ.
Transporters plan to stop collecting containers, raising concerns about import and export delays.
Industry groups warn that a prolonged shutdown could hurt cargo owners and exporters already affected by the West Asia crisis.
- Who
- Adani Ports and Special Economic Zone, empty-container yard operators, transporters, shipping lines, and trade associations are involved.
- What
- A strike over new empty-container yard rules is threatening to disrupt container movements and India’s import-export supply chain.
- Where
- Mundra Port and the Mundra Special Economic Zone in Gujarat, India.
- When
- The operator’s circular was issued on August 21, and the external empty-yard codes are scheduled to be frozen from September 1.
- Why
- Adani Ports and Logistics cited congestion, vehicle turnaround, safety, security, and alleged misuse of empty-depot codes; yard operators oppose the change because they say it threatens their businesses.
Port operator’s rationale
Operators’ and trade groups’ concerns
Restricting empty-container yards
Port operator’s rationale
Adani Ports and Special Economic Zone says using designated depots within the Mundra SEZ will reduce road congestion, improve vehicle turnaround, strengthen safety and security, and address alleged misuse of empty-depot codes.
Operators’ and trade groups’ concerns
Empty-yard operators, transporters, and trade associations say the restriction reduces operational flexibility and threatens the viability of existing yards and businesses.
Capacity and supply-chain impact
Port operator’s rationale
The company’s circular indicates that consolidating empty-container activity inside designated depots is intended to improve port operations.
Operators’ and trade groups’ concerns
Industry representatives say the SEZ yards can handle only about 20% of demand, potentially delaying empty-container returns, factory stuffing, imports, and exports.
Strike consequences
Port operator’s rationale
The port’s proposed arrangement is presented as an operational and security measure rather than a move to halt trade.
Operators’ and trade groups’ concerns
MECYASA and supporting transporters warn that a continued strike could create wider disruption, with associations seeking intervention from the Directorate General of Shipping and APSEZ.
Key facts
- Containers at risk
- Nearly 5,000 containers per day could be held up.
- New rule
- External empty-yard codes are scheduled to be frozen from September 1.
- Alternative depots
- Shipping lines would have to nominate empty containers to designated depots within the Mundra SEZ.
- Estimated port volume
- Mundra Port handles roughly 19,000 to 23,000-plus TEUs daily, equivalent to about 10,000 to 14,000 containers.
- SEZ capacity claim
- The yards within the SEZ can reportedly cater to only about 20% of the business.
- Industry response
- MECYASA began a strike, while KMCTA members said they would stop collecting containers and keep vehicles off the road.
- Existing trade pressure
- A Morbi Ceramic Association representative said exports were already at 20% because of the West Asia crisis.
Quotes
Bhagirathsinh Jadeja
President of the Kandla Mundra Container Transport Association
“The effect will be seen in the next couple of days as the transporters go on strike. Import and export will be affected. The empty yards within the SEZ can cater to only 20% of the business.”
financialexpress.com
“As such, the exports are at 20% due to the West Asia crisis.”
financialexpress.com
Sources
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