Container volumes at Indian ports somewhat moderated in July month on month, signalling tightening market conditions as a result of ongoing inflationary pressures in major global economies.
Combined throughput out of the country’s government/major and non-government/minor ports stood at 1.6 million TEUs last month, versus 1.7 million TEUs in June, according to the latest port figures obtained by Container News.
To put that moderation in perspective, July export shipments via terminals in major port complexes slid to some 450,000 TEUs from about 457,500 TEUs a month earlier.
Further, the Adani Group-controlled four terminals at Mundra Port, the country’s busiest container harbour, also saw a slowdown in cargo movement last month, with combined box volumes down to some 466,500 TEUs from 470,500 TEUs in June, data shows.
That slowing trend has already prompted major container lines operating on trades to/from India to implement contract/spot rate reductions and also abandon previously planned general rate increase (GRI) and peak season surcharge (PSS) notices, which were to take effect this month.
Industry observers generally believe Indian export volumes will further tighten in the coming months because of weakening consumer demand in the larger sourcing markets.
“Signs of a likely slowdown in exports can be seen as global inventories are pretty high,” said A. Sakthivel, president of the Federation of Indian Export Organisations (FIEO).
He added, “The merchandise exports are facing a triple whammy: (i) there is again a shift in consumption from goods to the services with opening up of economies after Covid-19 pandemic; (ii) the inflation affecting all economies reducing the purchasing power; and (iii) many economies entering the recession while some advanced ones already in recession.”
He went on to highlight that “The reduction in voyage time, with normalisation of Covid disruptions, have also added to the inventory hike as goods which used to reach the West Coast of US in 150 days now reach in 60 days.”
FIEO noted, “The export figures have also been affected as the prices of most of the metal and commodities are falling, which has resulted in value-wise export realization.”
India’s major/government ports ended the fiscal year 2021-22 on a strong note, with volumes up 17% year over year.
Jenny Daniel
India correspondent
Contact email: j.daniel@container-news.com
