Cyclone Biparjoy is expected to significantly impede port operations and impose restrictions on container movement, according to Container xChange, an online marketplace for container logistics companies.
If the assessment proves to be accurate, it will probably have an impact on cargo movements, including for the nation's automotive industry, which until recently suffered from higher logistic costs due to a shortage of containers as a result of the pandemic.
As per Container xChange, the vessel operators have been instructed to evacuate berths, resulting in a halt in container movements. Furthermore, disruptions in the rail service have added to the problem, leading to expected delays and potential backlogs in cargo movements.
"The suspension of port operations, including major ports such as Deendayal Port, Adani Ports’ Mundra Port, Tuna Port, APM Terminals Pipavav, and Adani Hazira Port, will directly impact container availability and operations." Container X said in a note on Thursday "Mundra Port, already grappling with a substantial build-up of containers due to diversions from APM Terminal's Pipavav Port, may face further difficulties in managing container flows once operations resume," it added.
However, while the situation remains fluid, Container xChange noted the need for an effective contingency plan by exercising flexible routing options to mitigate disruptions in container movements.