Container cargo volumes at Indian ports could drop by as much as 16% in FY21. This is due to the COVID-19 pandemic, which has plummeted consumer demand.
The first signs of a sharp dip in container trade across India’s ports have surfaced with volumes at Jawaharlal Nehru Port Trust (JNPT) was the first hit by the sharp dip in container trade. Namely, India’s biggest container gateway plunged by about 37% in April, year on year basis.
In April, the imports at JNPT fell about 20%, with export reducing by about 55%, while shortage of trucks and drivers affected hinterland movement for imports and exports.
In addition, many liners have skipped calls at JNPT and Mundra port, in April, due to congestion and paucity of exports.
What is more, reduced production because of sparingly available manpower, besides transportation and clearance challenges, has also affected exports, according to CRISIL Research.
India has significant container volumes linked with significantly hit COVID-19 countries, and is now at risk of a sharp dip in container trade.
Currently, the US and Europe, including the UK, are areas with very high traffic risk. In addition, the Middle East and Rest of Asia have high traffic risk. However, China is in the moderate-to-high traffic risk category.
