Exim cargo at India's ports fell by 2% in April amid West Asia conflict
With the West Asia war choking the vital Strait of Hormuz, India’s ports — both state-owned and private — reported a near 2 per cent year-on-year (Y-o-Y) drop in international maritime cargo during April, led by decreased volumes in crude oil, fertilisers, and coal.
According to the ministry of ports, shipping and waterways’ data, India’s major ports (owned by the Centre) handled 73 million tonnes (mt) of cargo in April while non-major ports (owned by private players and state governments) handled 59.5 mt.
This continues the streak of ports across the board showing a contraction in export-import (Exim) cargo volumes after the US-Israel-Iran war started on February 28.
In March, state-owned ports recorded a 4.3 per cent contraction in volumes while cargo for private and state maritime board ports reduced by 6 per cent Y-o-Y.
In April, crude oil and other petroleum product cargo continued to contract at major ports. Over and above the West Asian market for any other product, India’s energy needs, such as oil and gas, are heavily reliant on the strait.
Most major ports on India’s West Coast reported a contraction in Exim cargo volumes. Deendayal Port Authority (Kandla Port), which is among India’s largest, reported an 11 per cent decrease in overseas cargo, while Cochin, New Mangalore, and Paradip and Kolkata ports on the East Coast also saw contractions in volumes last month.
The Gujarat Maritime Board, which comprises dominant names like Mundra and Pipavav ports, along with captive ports for major government and private oil refineries, reported 32 mt of cargo — a decrease of 2 per cent over last April.
On the other hand, Maharashtra’s Jawaharlal Nehru Port Authority (JNPA) and Mumbai Port have seen major spikes in cargo volumes, handling over 15 mt of cargo.
JNPA previously saw congestion and build-up as a major chunk of West Asia-bound exports and imports take place at the port.
Commerce Minister Piyush Goyal and Shipping Minister Sarbananda Sonowal met on Friday to discuss congestion at the port due to a shortage of trailer drivers at container freight stations.
To provide relief to trade stakeholders, Intern-Terminal Railway Handling Operation (ITRHO) charges and Change of Mode of Transport charges were waived.
Port terminals also extended waivers and discounts on ground rent charges on a case-to-case basis, a government statement after the meeting said.
On the other hand, a coastal cargo push and some stability returning to maritime trade meant that ports are in the green as far as domestic and international cargoes are cumulatively concerned.
Major ports reported a 17 per cent Y-o-Y increase in coastal cargo in April while non-major ports saw a 6 per cent rise.
