More supply chain delays in india as cyclone forces pipavav port to close

3 mins read  Sealuminati TeamMay 26, 2021

The Indian port of Pipavav has been forced to close due to Cyclone Tauktae, as it is one of the worst Arabian Sea cyclones to hit India in a decade, with gusts of up to 185 kilometres per hour, putting additional strain on the country's shipping networks. Pipavav, run by APM Terminals, claimed "force majeure" and stated it would cease operations until 1 June.

Despite the fact that the port's infrastructure has not been significantly damaged, it hits the power supply and communication linkage

Containerships were directed away from the 1.35 million TEU capacity facility as a result of its closure, causing more cargo disruption.

Co-founder and CEO of Freightwalla ,Sanjay Bhatia made a statement that“Vessels will now have to re-route or, plausible dump containers at other ports.

The impact on shipping lines, importers, and exporters is projected to be significant.

The second wave of Covid-19 has been wreaking havoc on supply networks, and this will add to the strain by increasing costs and delaying shipments. It could also put additional strain on other ports in terms of managing discharged cargoes.

This will cause shipments to be delayed, since exporters who expect to send items through Pipavav may temporarily halt exports due to the extra costs.”

Conbox Logistics CEO Rakesh Pandit said the ports of Mundra and Nhava Sheva had already seen schedule adjustments. “Some are running late and some are running early,” he continued, “which is quite annoying for exporters who are already suffering from high freight rates.”

The space issue has resurfaced for several port combinations outside of India, thus shippers are encouraged to plan shipments at least three to four weeks in advance to be on the safe side in terms of bookings and affordable rates.

The inclement weather may have an impact on India's efforts to collect more transhipment cargo.

According to The Hindu Business Line, Tauktae has hit the progress of Adani Port's transhipment facility in Vizhinjam, Kerala, another setback for the operator after multiple delays since the concession was issued in 2015.

In South Asia, A key transhipment hub Sri Lanka's Colombo port is being developed to minimise India's reliance. However, according to reports in the media, Vizhinjam will not be completed until 2024, meaning it will miss out because Colombo's newest terminal would likely open sooner.