Over the weekend, two Indian-flag liquefied petroleum gas (LPG) carriers, Shivalik and Nanda Devi, carrying about 92,712 million tonnes (MT) of LPG crossed the Strait of Hormuz and are slated to reach India on Monday and Tuesday.
“While oil tankers and LPG vessels are allowed to pass, we have been asking authorities to ensure movement for containers as well,” a freight industry executive said. He added that ports like Nhava Sheva/Jawaharlal Nehru Port Authority (JNPA) and Kandla Port (Deendayal Port Authority) are facing congestion issues.
According to executives, over 30,000 containers remain stuck at various levels of the supply chain. According to Oslo-based shipping intelligence firm Xeneta, congestion at Kandla Port is at 100 per cent and is marked as critical by the firm’s port congestion tracker.
The port currently has an average wait time of 2.1 days.
Similarly, congestion at JNPA is at 61.1 per cent as of Sunday evening. These two ports have seen the biggest buildup of stuck cargo since the West Asia crisis began, a freight forwarder said.
The US-Israel versus Iran war has severely hit shipping operations, leading to shipping costs rising nearly fivefold due to added surcharges – something the government has also noted.
According to Xeneta, spot rates for containers at Nhava Sheva have jumped 54 per cent since the crisis began, reaching $2070 for a forty-foot container.
“Carriers have cancelled services into the Arabian Gulf, but supply chains do not stop. Some shippers simply cannot pull the plug — they need their cargo to keep moving. Alternative ports like Nhava Sheva in India are being used as temporary storage and transshipment points, bringing cargo closer to West Asia,” said Peter Sand, chief analyst at Xeneta.
“Congestion is building and is toxic for supply chains as carriers and shippers try to identify the least worst option for their cargo,” he added.
Meanwhile, stakeholders continue to closely monitor the maritime security situation in West Asia. “On 14 March, while the Indian-flag vessel Jag Laadki was loading crude oil at the Fujairah Single Point Mooring, the Fujairah oil terminal was attacked. The vessel sailed safely from Fujairah at 10:30 Indian standard time (IST) on Sunday carrying about 80,800 MT of Murban crude oil and is bound for India.
The vessel and all Indian seafarers onboard are safe,” India’s shipping ministry said.
Currently, 22 vessels remain stuck near the Strait of Hormuz with most of them carrying essential energy commodities.
“Six are LPG tankers, one is an LNG carrier, four are crude oil tankers, one is a chemical product tanker, three are container ships, two are bulk carriers, and one is a dredger,” Rajesh Kumar Sinha, special secretary at the shipping ministry, said in a briefing on Saturday.
Meanwhile, India’s shipping regulator has taken note of the rising surcharges levied on traders for cargo movement by shipping lines. According to industry, some of these surcharges are two-three times the base freight rates for a container, and are being levied by every major global shipping line.
Directorate General of Shipping advised them to “Refrain from predatory, non-transparent and opportunistic pricing practices, including levy of exorbitant charges thereby taking undue advantage of the prevailing geo-political situation.”
It added that they should adhere to fair trade practices, avoid levying charges that may give rise to disputes within the EXIM trade. It said that they must also ensure that all applicable charges are communicated clearly and upfront to exporters, importers and other stakeholders.
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