Slow work at ports may trigger delays

Karaikal Port in Tamil Nadu has invoked force majeure until May 24, while cargo movement at Vizag Port in AP was affected till May 19

Mumbai, May 14: India’s Covid-19 crisis is threatening operations at some of its biggest ports, raising concern the action could trigger shipping delays that reverberate through global supply chains.

Karaikal Port in southern India invoked force majeure until May 24 after operations were “severely affected” by the pandemic, according to a notice on its website.

The terminal, which claims to be India’s biggest non-state port, handles coal, sugar and petroleum among other commodities. Gopalpur port in Odisha has also declared force majeure, according to IHS Markit.

The situation may echo global trade disruptions seen last year after virus restrictions slowed shipments into China. While India accounts for only a fraction of the global trade that China does, any delays in offloading vessels and releasing them to their next destination could create supply chain bottlenecks.

India has 21.9 million tons of cargoes scheduled to arrive this month but with labour shortages and force majeure at some ports, many of the vessels could see discharge delays, according to IHS Markit associate director Pranay Shukla. That may have a knockon effect on scheduled loadings at the exporting countries.

Cargo movement at Vizag Port is also partly affected after the local traders’ body announced force majeure in the port area until May 19, according to G. Veeramohan, president of the Vizagapatam Chamber of Commerce and Industry.

State-run refiner Hindustan Petroleum Corp., which uses the Visakhapatnam port to import crude oil is unaffected as it uses an offshore mooring facility for unloading tankers, said chairman Mukesh Kumar Surana.