APM Terminals Appoints Peter Wikström as New CFO APM Terminals Appoints Peter Wikström as New CFO

Mundra Port, operated by Adani Ports and Special Economic Zone (APSEZ), manages five container terminals, including one run by DP World under the Mundra International Container Terminal (MICT) concession. According to a senior executive from a major shipping line, the port's operations were halted for three days due to flooding, resulting in substantial cargo backlogs.

Adani terminals are actively working to clear the backlog and restore normal vessel berthing operations, but the process could take up to a week or longer, depending on further weather developments. Due to the congestion, the port is currently prioritizing export-oriented vessel calls.

More than half of Mundra's container volumes move by rail or are handled by inland container depots (ICDs). However, a private container train operator reported a backlog of incoming trains caused by the recent weather disruptions. Efforts are underway to clear the stranded trains, according to port authorities.

Concerns have been raised by some in the industry regarding perceived berthing advantages for vessels from MSC and CMA CGM, which have terminal partnerships with Adani at Mundra. Other vessels are facing longer wait times, with some opting to skip or divert to other ports along the coast. For instance, the Cosco Philippines bypassed Mundra last week.

The congestion at Mundra is having a wider impact on supply chains throughout the region. At Nhava Sheva Port, also known as Jawaharlal Nehru Port Authority (JNPA), truckers and freight station operators are reporting increased delays in cargo movements. They have called on authorities to take swift action to resolve the issues.

Recent road traffic restrictions in the JNPA area, aimed at improving vehicle flows, have added to the delays, with truckers reporting turnaround times of up to 20 hours. The Nhava Sheva Container Operators' Welfare Association has highlighted the pressure on transporters and drivers to meet customer commitments under these conditions.

Additional concerns have been raised by other stakeholders, who report that exports are being "shut out" and imports delayed by 12 to 24 hours. According to Umesh Grover, Secretary General of the Container Freight Stations Association of India, the backlog has created significant challenges for those working to clear ships at the ports.

Nhava Sheva has seen an increase in volumes in recent months, with August hitting a new monthly high. The combined throughput for August reached 639,336 TEU, compared to 555,270 TEU in the same month in 2023.

The situation remains fluid as ports and logistics stakeholders work to address the ongoing disruptions and restore normal cargo flows.

Editor: Kemal Can Kayar